A car accident can disrupt every part of your life in an instant. When the accident involves an uninsured or underinsured driver, the financial pressure often escalates quickly. Medical bills, lost income, and vehicle repairs add up, and the at-fault driver’s insurance may not provide enough coverage for your damages. This is where Virginia uninsured and underinsured motorist coverage becomes essential financial protection.
Uninsured and underinsured motorist coverage is part of your auto insurance policy and may allow you to seek compensation through your own insurance company when the other driver cannot fully pay for the harm they caused. Understanding how UM/UIM coverage works under Virginia law and how to use it correctly after an accident can make a significant difference in whether you are fully covered or left paying out of pocket.
This guide explains how uninsured and underinsured motorist claims work, how UIM coverage applies in serious crashes, and how to protect your best interests after an accident involving inadequate insurance coverage.
Quick Takeaway
- Uninsured and underinsured motorist coverage may apply when the other driver has no liability coverage or not enough insurance.
- UM/UIM coverage comes from your auto insurance policy, not the at fault driver’s insurance.
- You must still prove fault, damages, and the full extent of your losses.
- Following the correct procedure under Virginia law before settling is critical to preserving coverage.
What Is Uninsured and Underinsured Motorist Coverage in Virginia?
Virginia uninsured and underinsured motorist coverage is designed to provide coverage when an accident is caused by a driver who does not carry auto insurance or does not have enough liability coverage to pay for your injuries.
Uninsured Motorist Coverage
Uninsured motorist coverage applies when the other driver:
- Does not carry auto insurance
- Flees the scene in a hit-and-run accident and cannot be found
- Has an insurance carrier that denies coverage or rescinds their policy for contractual reasons
In these situations, uninsured and underinsured motorist provisions in your insurance policy step in to provide coverage as if the other driver were insured.
Underinsured Motorist Coverage
Underinsured motorist coverage, often referred to as UIM coverage, applies when the at fault driver’s insurance exists, but the available insurance coverage is too low to fully compensate you. An underinsured driver may have only minimum liability coverage, which can be exhausted quickly in a serious accident.
UIM coverage is especially important in Virginia, where many drivers carry only the minimum required limits. A difference of a few dollars per month in premiums can result in substantially more coverage when you need it most.
Coverage Required Under Virginia Law
Virginia law requires insurers to offer uninsured and underinsured motorist coverage in every auto insurance policy. While drivers can choose lower limits, Virginia law requires that UM/UIM coverage match liability coverage unless it is rejected in writing. This legal framework is intended to provide financial protection when accidents happen.
When UM/UIM Coverage May Apply After a Car Accident
You may have an uninsured or underinsured motorist claim if your accident involves:
- An uninsured driver
- An underinsured driver whose liability coverage limits are insufficient
- A hit-and-run accident
- Multiple injured people sharing limited coverage
Many drivers assume the other driver’s insurance will pay everything, but that is often not the case. Reviewing your auto insurance and understanding your UM/UIM coverage early can help you identify whether more coverage may be available.
Understanding Liability Coverage and Coverage Limits
Liability coverage is the portion of car insurance that pays for injuries or property damage caused to others. This includes bodily injury liability and property damage liability coverage. When the liability limits are too low, uninsured and underinsured motorist coverage may provide additional compensation.
Coverage limits matter. Once the at-fault driver’s insurance reaches its limits, no more compensation is available from that policy, even if your damages are far greater.
How to Find Your UM and Uim Coverage
Your declarations page outlines your insurance coverage, including:
- Uninsured and underinsured motorist bodily injury limits
- Property damage coverage, if applicable
- Medical bill coverage, if applicable
- The number of vehicles insured on the policy
Your insurance policy may also allow stacking, which can increase the total amount of coverage available.
Why UIM Coverage Can Be Confusing
In UIM claims, the amount paid by the at fault driver’s insurance may be credited against your UIM coverage. Understanding how this credit works is essential before agreeing to any settlement.
Using Your Own Auto Insurance After an Accident
Using your own insurance after a car accident in Virginia may feel counterintuitive, but it is often necessary when the other driver lacks sufficient coverage. It is important to remember that you pay for this coverage in your premiums to your insurance company.
Medical Payments and Health Insurance
Medical payments coverage and health insurance may help pay bills initially. However, insurers may seek credit or reimbursement later, which should be considered when evaluating compensation.
Collision and Property Damage
Collision coverage can pay for property damage caused to your vehicle regardless of fault. This may allow repairs to proceed faster than waiting on the other driver’s insurance.
Common UM/UIM Mistakes That Can Hurt Your Claim
- Waiting too long to notify your insurance company
- Gaps in medical treatment
- Accepting settlements without understanding coverage limits
- Accepting settlements without executing a release containing statutory language that permits you to seek payment from your UIM coverage
- Signing releases that waive UIM rights
- Assuming the at fault driver’s insurance is sufficient
Stacking and Multiple Policies
Depending on your situation, UM/UIM coverage may be available from more than one auto insurance policy. Stacking can provide more coverage, which can be crucial in serious injury cases.
Compensation Available Through UM/UIM Coverage
Uninsured and underinsured motorist coverage may provide compensation for:
- Medical expenses and future care
- Lost income
- Pain and suffering
- Certain property damage
The goal is fair compensation that reflects the true impact of the accident.
When Legal Action May Be Necessary
Some UM/UIM claims cannot be resolved through negotiation. Legal action may be required when an insurance company disputes fault, damages, or coverage. Working with a Virginia car accident lawyer can help protect your legal options and ensure claims are handled in your best interests.
Protecting Your Recovery After an Uninsured or Underinsured Crash
An accident involving inadequate insurance can leave you feeling exposed and uncertain. Uninsured and underinsured motorist coverage is designed to fill that gap, but only when it is handled correctly.
Understanding your insurance coverage, knowing when UIM coverage applies, and following Virginia law can help ensure you are not left without the financial protection you paid for. If you are unsure how your auto insurance policy applies after a crash, a legal team experienced in UM/UIM claims can help you evaluate your legal options and pursue fair compensation based on the facts of your case.
How Renfro & Renfro Helps Protect Your Recovery After an Uninsured or Underinsured Crash
An accident involving inadequate insurance can leave you feeling exposed and uncertain. Uninsured and underinsured motorist coverage is designed to fill that gap, but only when it is handled correctly and in compliance with Virginia law.
Renfro & Renfro focuses on helping injured Virginians navigate complex UM/UIM claims, including accidents involving uninsured or underinsured drivers, disputed liability, and overlapping insurance coverage. By reviewing your auto insurance policy, identifying all available insurance coverage, and managing communication with the insurance company, the firm works to reduce mistakes that can limit recovery.
If you are unsure how your UIM coverage applies or whether you should take legal action after a car accident, Renfro & Renfro can help you understand your legal options and determine the most effective path forward based on the facts of your case.
FAQs
What is the difference between uninsured and underinsured motorist coverage?
Uninsured coverage applies when the other driver has no insurance, while underinsured coverage applies when existing coverage is not enough.
Does UM/UIM coverage apply to passengers?
Yes, passengers may be covered under the insurance policy.
Will filing a UM/UIM claim increase my car insurance rates?
Rate changes depend on the insurance company and circumstances of the accident.
