What is Uninsured Motorist Coverage?: FAQ

Until an uninsured driver injures you in a crash, you have no reason to think about coverage for accident-related medical bills. As a Connecticut driver, you should know that your own auto policy’s uninsured motorist provisions should pay your medical bills, lost income, and other expenses. What is uninsured motorist coverage? How does it work? You should know the answers to these and other questions before a negligent driver harms you.

As motor vehicle accident attorneys, we work to resolve our clients’ injury claims. We believe it’s also important to provide critical information you might not learn otherwise. That’s why we prepared “What is Uninsured Motorist Coverage?” While we highly recommend you consult with an attorney if someone injures you in an accident, this FAQ can answer some of your immediate questions.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage pays for your injury claim when an uninsured driver causes your accident. The coverage responds the same way the other driver’s insurance company should have responded if they’d had a valid liability policy. Essentially, your insurance company steps into the shoes of the negligent driver and their insurer. They investigate your accident, evaluate your injuries, and negotiate your injury claim based on their findings.

When does uninsured motorist coverage apply to my injury claim?

In responding as a liability carrier, your insurer pays based on the other driver’s negligent actions. UM coverage applies only under these specific circumstances.

• The negligent driver doesn’t have a valid liability policy or a bond.
• The other driver had a policy, but the company declined coverage. This happens for several reasons.
  • The insurer canceled coverage for nonpayment.
  • The crash was intentional. (Auto policies only cover accidental crashes)
  • An unknown party stole the car before causing your accident.
  • Someone the insured knew took their vehicle without their permission.
• The responsible driver’s insurance company went out of business or is insolvent.
• You’re involved in a hit-and-run accident with a negligent driver who left the scene without identifying themselves.

What does uninsured motorist coverage pay?

Uninsured motorist coverage pays damages a legally liable driver owes but doesn’t have insurance to pay. Recoverable damages usually fall within two categories:

• Economic Damages include incurred and future medical costs due to accident-related injuries. Expenses may include ambulance transport, emergency treatment, hospitalization, follow-up care, medication, lost income, funeral expenses, medical transportation, and other costs.
• Non-economic Damages are based on your assessments. They may include pain, suffering, emotional distress, and other subjective losses.

What if I don’t have uninsured motorist coverage?

If you have a Connecticut personal auto policy, it should include uninsured motorist coverage. Both uninsured and underinsured motorist coverages are mandatory for Connecticut policyholders. Under state Property and Casualty Statutes, insurers licensed to do business in the state must include uninsured motorist and underinsured motorist coverages on every auto policy.

What does underinsured motorist coverage pay?

Underinsured motorist coverage pays a portion of your injury claim when the negligent driver has bodily injury liability coverage, but your injury value exceeds their coverage limit. It applies under specific circumstances:

• The negligent driver has insurance.
• The negligent driver’s insurer paid claims that reduced their bodily injury liability coverage amount.
• The limit of all available BI liability coverage is less than your uninsured motorist coverage limit.

How do I make an uninsured motorist claim?

When you file a claim report with your insurer, that’s the first step to making an uninsured or underinsured motorist claim. If a negligent driver injures you, you shouldn’t wait to confirm whether they have insurance. In fact, your policy requires you to report any claims to which your coverage may apply.

When you turn in your claim to your insurer, be sure to mention that you sustained injuries or that you plan to see a doctor. The claim department won’t necessarily establish an uninsured motorist claim immediately, but you will have met your duty to place them on notice of your potential claim. Whether you believe you’re at fault or not, timely reporting is essential for several reasons.

• Your insurer will want to conduct its own investigation and make critical claim decisions.
• They want to determine if you may share liability for the accident.
• They need to know if the other driver or his passengers sustained injuries and may wish to make a claim against you.
• Your insurer needs all available information related to your accident, so they can meet their legal requirement to establish reserves for all potential claims.
• It might take longer than you anticipate for the other driver to confirm they have no insurance and pass the information on to you. If their insurer declined coverage, they have no duty to notify you.

How do insurance companies handle an uninsured motorist claim?

An uninsured motorist claim is a liability claim for your injuries. When you report your accident, your insurer investigates your accident. They examine any liability issues and determine if they owe the other party for their damages.

If they learn the negligent driver had no insurance or doesn’t meet the state’s coverage limit, they establish an uninsured motorist claim or an underinsured motorist claim. For the most part, they handle your UM or UIM claim the way they would handle a typical liability claim.

• A claims adjuster investigates your accident.
• They determine liability and evaluate your injury-related damages.
• They will only settle your claim if they determine the other driver was more negligent than you.
• You or your legal representative negotiate a settlement (economic and non-economic damages) the same way you would have negotiated with the other driver’s liability carrier.
• Your insurer might not offer you a UM/UIM settlement unless you initiate negotiations.

Isn’t there a potential for insurance company conflicts of interest?

When filling the roles of liability carrier for the other driver and first party insurer for you, your insurance company can easily set up a conflict of interest. As you have a contract, you must cooperate in ways not enforceable by someone else’s liability insurer. If you want to make a claim, you must cooperate, on demand, whether it’s in your best interests or not.

• Provide a recorded statement, sometimes under oath (for Med Pay, UM, UIM, UIM Conversion claims)
• Sign medical releases
• Provide proof of income
• Turn in your medical documentation
• Submit to independent medical examinations
• Protect your insurer’s subrogation rights
• Submit proof of loss for any claim submitted
• Meet your insured’s guidelines if you decide to sue the responsible party

When you’re dealing with a negligent driver’s liability insurer, they can’t force you to cooperate until you’re ready. When you’re dealing with your insurer, you often give up your right to determine if and when you want to cooperate.

How do I negotiate an uninsured motorist claim?

It’s usually up to you to decide when it’s time to negotiate a UM/UIM settlement. As your insurer might not mention settlement, it’s your responsibility to ask about negotiating your claim. Insurers prefer to deal with injured people directly as they rarely understand their claim’s full value. That’s why you need a motor vehicle accident attorney working on your behalf.

When you work with a lawyer, a legal team puts its knowledge to work for you. Investigators help prepare your case, anticipating future negotiations. Attorneys deal with insurers, taking steps to resolve any coverage problems. They identify and assess any liability issues. While you’re working through your recovery, they research claim values to gain a negotiation advantage, and they develop a legal strategy for resolving your case. During negotiations, they fight to recover just compensation for you.

Does the statute of limitations apply to uninsured motorist claims?

Yes. Your UM/UIM claim follows the same legal guidelines as a liability claim. The statute of limitations applies in the same way. This means you must settle your claim or file a lawsuit before your time expires. For Connecticut auto injuries, you have two years from the date of your accident to take action, or you’ll lose your right to make a claim. Your insurer might not tell you this.

Insurers often take the position that if they tell you when your statute of limitations is closing in, it’s a form of legal advice. They can’t give legal advice, but it could be construed as bad faith if they continue discussing your claim, knowing your deadline is near. To avoid bad faith allegations from not telling you, they may simply stop communicating with you several months before your statute of limitations date.

How much uninsured motorist coverage do I need?

Connecticut drivers must have Bodily Injury liability with a minimum limit of $25,000 per person/$50,000 per accident. Your Uninsured/Underinsured motorist coverage matches your BI liability limit. While $25,000 might sound generous, it won’t likely be enough to pay for a single hospital stay.

When an insurer writes your policy, they must offer you higher limits. You have a right to reject higher limits, but you should consider the potential for financial losses if a crash seriously injures you. You also have the right to purchase Uninsured Motorist Conversion Coverage. This increases your available BI coverage when an underinsured driver injures you.

Can I buy uninsured motorist property damage coverage in Connecticut?

No. Connecticut insurers do not sell uninsured motorist coverage for property damage.

What happens if I don’t file a claim report right away?

If you delay reporting your accident to your insurer, they may have the right to decline coverage or deny your claim. A delayed claim report may prevent them from conducting a timely investigation, evaluating potential liability exposures, and settling covered claims. If your delay jeopardizes their ability to defend you or resolve potential claims, they may have the right to decline coverage for the accident.

While claim denials and coverage declinations are worst-case scenarios, your insurer may still send you a formal reservation of rights letter. If this sounds legally ominous, it can be, but it usually depends on the situation.

If your insurer believes your delay jeopardized their rights, an ROR explains the potential for a future adverse coverage decision. After sending a ROR, the claims department should still investigate your claim. Once they send the letter, it can support their right to decline your coverage should they feel it’s warranted.

Why does my insurer have the right to deny my UM claim for delayed reporting?

If an insurer finds a valid reason to decline your coverage or deny your UM claim or any other claim, they might exercise that right. A Personal Auto Policy is a contract that explains your and your insurer’s rights and responsibilities.

When an insurance company offers you a policy and you pay your premium, you accept its terms. While policy language varies, most insurers follow the same principles. Every auto policy includes a section explaining your “duty” as an insured. Your obligation to notify your insurer when you have an accident is usually the first duty on the list.

A car accident attorney can help you resolve coverage issues

Ultimately, if you report your claim as soon as possible, it helps you preserve your right to make a claim. This is particularly important if you have serious injuries and the other driver has too little coverage or no coverage at all.

Whether you anticipate making a UM or UIM claim or not, you should talk to a car accident attorney as soon as possible after a crash. They can deal directly with your insurer and the other driver’s liability insurer. They can help you meet critical time frames and work to resolve coverage issues before they become problematic.

Contact a Connecticut Motor Vehicle Accident Attorney

If someone injures you in a car accident, you shouldn’t deal with an insurance company on your own. When you contact a motor vehicle accident attorney, they can take control of your case and deal with insurers on your behalf.

When you schedule an appointment for a free consultation, you can meet with an attorney to discuss your accident and injuries. You’ll have an opportunity to learn more about your legal options. You don’t have to make a decision immediately. You choose whether you want to make a claim or file a lawsuit.