The Impact of Uninsured/Underinsured Motorist Coverage on Personal Injury Recoveries

When a car wreck turns your day upside down, you probably don’t think about whether the driver who hit you has good insurance. However, that detail can make a big difference in whether you can actually recover the money you need for medical bills, lost wages and other costs.

That’s where uninsured or underinsured motorist (UM/UIM) coverage comes in. This article will discuss how UM/UIM works in Florida and Virginia, and its impact on your personal injury recovery.

What is UM/UIM Coverage?

Uninsured (UM) and underinsured (UIM) motorist coverage are parts of an auto insurance policy. They are designed to fill the gap when the driver at-fault doesn’t have insurance at all, or doesn’t have enough insurance to cover your damages.Without this coverage, victims may be left with large unpaid expenses. UM/UIM allows your own carrier to step in when the other driver’s policy isn’t enough. Here’s the basic idea:

• UM coverage pays you when the person who injured you has no insurance.
• UIM coverage pays you when that driver does have insurance, but their limits aren’t enough to cover your full damages.

How UM/UIM Works in Florida

In Florida, your insurer must offer UM/UIM coverage with limits that match your bodily injury liability limits. However, you have the right to reject it in writing. Many drivers buy policies that don’t include it, often to reduce premiums, but they find out later how costly that choice can be.

A big feature of Florida UM/UIM is stacking. If you have more than one car on a policy and have opted for stacked coverage, you can add together the UM/UIM limits from each vehicle. This can increase the total amount of UM/UIM coverage available under the policy. For instance, if you have UM/UIM limits of $50,000 on two vehicles, stacked coverage could give you up to $100,000 available. Without stacking, you’ll just have $50,000.

Florida’s minimum required liability coverage is just $10,000. As a result, many people find that UM/UIM coverage is the only real financial protection they have after being hit by an uninsured or underinsured driver. However, you need to hire the services of a Florida personal injury lawyer to guide you as the damage recovery process can be somewhat tricky.

How UM/UIM Works in Virginia

Virginia’s approach is different in a few key ways. First, Virginia now generally requires UM/UIM coverage to match liability limits unless the insured rejects it in writing. Recent legislative changes have also reshaped how stacking works in the Commonwealth.

Before changes that took effect in July 2023, UM/UIM benefits were often reduced by credits for the at-fault driver’s liability coverage. Now, Virginia law allows consumers to stack UM/UIM benefits with liability coverage in many cases. This means that a person could recover their full liability and full UM/UIM amounts. So, this increases the total available compensation after a crash.

Virginia also recently strengthened protections against bad-faith denials of UM/UIM claims. Under the new law of 2024, if an insurer fails to pay what it should under a policy, a claimant may be entitled to double damages, plus attorney fees and expenses.

Why This Coverage Matters

Insurance limits often set the ceiling on what a victim can realistically collect, regardless of how severe their injuries are. If the driver who hit you has only the minimum required liability coverage, a lawsuit against that driver may get you a judgment. However, collecting on it can be another matter. Without sufficient insurance available, many victims end up with high out-of-pocket costs. UM/UIM coverage steps in to address that gap

Endnote

If you’re involved in a crash with an uninsured or underinsured driver, UM/UIM coverage can be the difference between a shaky financial future and having enough to pay your bills and move forward. In Florida, options like stacking and statutory offer requirements shape how much coverage you can pull together. In Virginia, recent laws now let people stack benefits and bring bad-faith claims against insurers that fail to pay.

The information provided in this article is for general informational and educational purposes only. It is not intended as legal, financial, or professional advice. Readers should not rely solely on the content of this article and are encouraged to seek professional advice tailored to their specific circumstances. We disclaim any liability for any loss or damage arising directly or indirectly from the use of, or reliance on, the information presented.