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Underinsured motorist coverage exists to cover your losses when the at-fault driver’s insurance limits are too low. It can be an essential source of compensation for your medical expenses, lost income, and pain and suffering after a car accident.
Many factors influence the amount of compensation you can get from an underinsured motorist claim, including your policy limits and injury severity. The compensation for an underinsured motorist claim often ranges from tens of thousands to hundreds of thousands of dollars. NST Law has extensive experience helping accident victims get maximum compensation in underinsured motorist claims. Our attorneys in Tennessee can protect you from financial strain if an underinsured driver has caused your injury.
Key Takeaways
- Underinsured motorist coverage can help you get more compensation for your medical expenses, lost wages, and other damages if the at-fault driver’s liability insurance is insufficient to cover your damages.
- We’ve achieved several six-figure underinsured motorist coverage payouts for clients.
- Factors affecting underinsured motorist claims include policy limits, the nature and severity of the injury, and shared fault.
What Is Underinsured Motorist Coverage?
<spanpstyle=”font-weight: 400;”>Underinsured motorist coverage, or UIM, is an insurance policy that protects you financially if the at-fault driver doesn’t have enough coverage to pay for your damages.
Most states’ minimum liability insurance requirements are insufficient to cover the cost of serious injuries. For example, Tennessee requires drivers to carry $25,000 for each injury per accident. However, a 2019 study found that the average hospital cost of a traumatic brain injury was $87,634 per person—and this doesn’t even account for long-term care needs or lost income. Other types of severe injuries, such as spinal cord injuries, can be even more costly.
Underinsured motorist coverage often gets lumped together with uninsured motorist, or UM, coverage, which pays for damages caused by drivers without insurance. Even though it’s illegal in most states, a large number of drivers carry no insurance at all. Here’s a look at the 2022 uninsured motorist rates in the states we serve:
| State | Percent Uninsured |
| Mississippi | 22.2 |
| Tennessee | 20.9 |
| Illinois | 16.3 |
| Missouri | 16.0 |
| Arkansas | 15.1 |
In some of these states, there’s at least a one-in-five chance that a driver you get into an accident with is uninsured. And even if the driver has insurance, there’s a high likelihood that it won’t be enough to cover your expenses. That’s where underinsured motorist coverage comes in.
Is UIM Coverage Mandatory?
Most states do not require UIM coverage. Insurance companies usually must offer UM/UIM coverage, and drivers may opt out when their state allows.
| State | UM/UIM Insurance Requirements |
|---|---|
| Mississippi | Not required |
| Tennessee | Not required |
| Illinois | A minimum of $25,000 per person and $50,000 per accident in uninsured motorist bodily injury coverage is required. Underinsured motorist coverage is required if you purchase higher limits of uninsured motorist coverage. |
| Missouri | Drivers must have uninsured motorist coverage of $25,000 for bodily injury per person and $50,000 per accident. Underinsured motorist coverage is optional. |
| Arkansas | Not required |
It’s still a good idea to purchase UIM coverage even if your state doesn’t require it. UIM coverage protects you from paying out of pocket for expenses exceeding the other driver’s coverage limits. It can make all the difference when you’re facing financial difficulty after a serious injury.
UIM Settlement Example
At NST Law, we’ve achieved favorable settlements and verdicts in numerous UIM and UM cases. In one case, we helped secure a $178,463 jury verdict for a pedestrian who was struck by an uninsured motorist and suffered serious injuries.
Because the at-fault driver was uninsured, we filed a claim through our client’s UM policy. The insurance company denied that the uninsured driver was liable, so we filed a lawsuit and proved liability to the jury.
Factors Influencing UIM Claim Amounts
Several factors can influence UIM claim amounts:
- Policy Limits: The policy limits you selected when purchasing your UIM coverage will affect the amount of compensation you can receive. Higher policy limits generally mean more compensation. Your underinsured motorist claim compensation can’t exceed your policy limits even if your damages are higher.
- Medical Expenses: Your claim’s value will also depend on the cost of medical care necessary to treat your injuries. You can seek both past and future expenses.
- Lost Wages: The injury’s impact on your ability to work will also affect your UIM claim’s value. Settlements are often higher for cases involving significant time off work and diminished future earning capacity.
- Non-Economic Damages: You may receive additional compensation for pain and suffering, emotional distress, and loss of enjoyment of life. These non-economic damages can greatly increase your total UIM settlement amount.
- Injury Severity: The extent of your damages largely depends on your injury’s severity. More catastrophic injuries require more long-term care, which results in higher compensation amounts.
- Shared Fault: Under laws like Tennesee’s comparative fault rule, you may receive less compensation if you’re partially at fault for the accident. The rules for apportioning fault differ by state.
Steps to File an Underinsured Motorist Claim
Your actions soon after an accident with an underinsured driver can affect the strength of your claim. Act carefully and do the following to protect your right to fair compensation.
Document Everything
Photograph the accident scene and your injuries. Call the police to report the accident and get a copy of the police report. Get medical care as soon as possible, and hold on to medical records detailing your injuries and treatments. Get proof of lost wages, including pay stubs and employer verification.
Notify Your Insurance Company
Report the accident to your insurance company as soon as possible. Provide the date, location, and basic details of the accident. It’s best to avoid sharing too much information until you’ve spoken with an attorney. Keep detailed records of all correspondence with insurance adjusters, noting whom you spoke with and what you discussed.
Cooperate With the Investigation
Respond promptly to the insurance company’s requests for additional information, but don’t say anything that could potentially hurt your case. You have the right to decline to give recorded or written statements without your attorney’s guidance.
Work With an Experienced Attorney
The sooner you consult with an attorney, the better you can protect your rights. Your attorney will review the facts, outline your legal options, and explain your next steps. They can handle negotiations with the insurance company and address disputes or delays. A Memphis car accident lawyer can also explore additional sources of compensation if your UIM coverage doesn’t fully cover your damages.
Common Challenges in UIM Claims
UIM claims can be more challenging to handle than other car accident claims. Common challenges in these cases include:
- Policy exclusions: Insurance policies may have exclusions that limit or eliminate coverage for particular types of accidents or injuries. Understanding how these exclusions apply to your case can be difficult without a legal background.
- Lack of documentation: You must provide evidence of the accident and your injuries to support your claim. However, you may face challenges locating key evidence, such as medical records or accident reports, which can weaken your argument for compensation.
- Disputes over fault: Insurance companies use a variety of tactics to reduce victims’ compensation, including disputing who’s at fault. You’ll need to prove the underinsured driver was at fault for the accident, which can be a major barrier without representation.
- Processing delays: Unnecessary delays from insurance companies can prevent you from getting the compensation you need in a timely manner. This can be especially difficult if you’re struggling with medical bills or lost wages due to your injuries. Insurance companies may feel less pressure to resolve your claim quickly if you don’t have an attorney on your side.
How NST Law Can Help
NST Law can help you with every stage of your accident claim. We’ll seek maximum compensation on your behalf, starting with a free case evaluation. During this consultation, we’ll analyze all available insurance policies to identify each potential source of compensation. We’ll also perform a detailed review of your accident’s circumstances to determine who’s at fault and gather strong evidence.
You can also benefit from our negotiation skills. After we build your case, we’ll negotiate with the insurance adjusters to seek a fair settlement. We’re familiar with the insurance companies’ common tactics to minimize payouts, and we can leverage that expertise in your favor.
If the insurance companies fail to offer fair compensation, we’ll be prepared to take your case to trial. We have a track record of securing favorable verdicts thanks to our strong litigation skills.
As your case progresses through the legal system, we’ll be available to address your concerns. Our team is committed to keeping you informed at every stage of the underinsured motorist claim process. This can provide much-needed peace of mind during an otherwise stressful time.
Our Skilled Legal Team Is Here for You
You’re likely entitled to more underinsured motorist claim compensation than the insurance companies want to admit. When you turn to NST Law, you’ll have a dedicated advocate on your side. We’ll work diligently to maximize your underinsured motorist claim’s compensation so you can start moving forward. Contact us online or call 800-529-4004 for a free consultation.
