Hit by an Uninsured Driver? Your Rights and Options by State

You did everything right -- you followed the traffic laws, you were paying attention, and you had insurance. But the driver who slammed into you? They had no insurance at all. Or worse, they had the bare minimum that does not even cover your ER visit.

This is a frustratingly common scenario across the country. According to the Insurance Research Council, roughly one in eight drivers on American roads is uninsured. In some states, the rate is nearly one in four. And many more drivers carry only the state minimum coverage, which may not come close to covering a serious injury.

So what do you do? You may have more options than you think.

How Common Are Uninsured Drivers?

The uninsured motorist rate varies dramatically by state:

| State | Estimated Uninsured Rate | State | Estimated Uninsured Rate | |-------|------------------------|-------|------------------------| | Mississippi | ~29% | Georgia | ~12% | | New Mexico | ~22% | New York | ~6% | | Michigan | ~20% | Pennsylvania | ~8% | | Tennessee | ~20% | Ohio | ~9% | | Florida | ~20% | California | ~15% | | Alabama | ~18% | Texas | ~14% | | Washington | ~17% | Illinois | ~10% | | Arkansas | ~16% | New Jersey | ~15% | | Colorado | ~16% | North Carolina | ~8% | | Arizona | ~12% | Massachusetts | ~6% |

Source: Insurance Research Council estimates. Rates fluctuate over time.

Even in states with relatively low uninsured rates, the odds are not in your favor on a long enough timeline. If you drive regularly, there is a meaningful chance you will eventually be hit by an uninsured or underinsured driver.

Uninsured Motorist (UM) Coverage: Your Safety Net

Uninsured motorist coverage pays for your injuries and damages when the at-fault driver has no insurance. It steps in as a stand-in for the insurance the other driver should have had.

What UM Coverage Pays For

• Medical bills (past and future)
• Lost wages
• Pain and suffering
• Other damages you would normally claim from the at-fault driver's insurer

Is UM Coverage Required in Your State?

The rules vary significantly:

| Category | States | |----------|--------| | UM required by default (must reject in writing to remove) | Connecticut, D.C., Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, Wisconsin | | UM required (cannot reject) | Colorado (limited), Hawaii, New Jersey (limited) | | UM must be offered but can be rejected | Alabama, Alaska, Arkansas, California, Delaware, Florida, Idaho, Indiana, Iowa, Kentucky, Louisiana, Michigan, Montana, Nevada, New Mexico, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Washington, Wyoming | | UM not required | Arizona, Mississippi (though many policies include it) |

Key takeaway: In many states, if you never signed a written rejection of UM coverage, your policy includes it by default. Check your policy -- you may have this coverage and not even realize it.

UM Coverage Limits

In most states, your UM coverage limits default to match your liability limits unless you specifically chose lower limits. So if you carry $100,000/$300,000 liability coverage, you likely have $100,000 per person / $300,000 per accident in UM coverage as well.

Underinsured Motorist (UIM) Coverage

What if the at-fault driver has insurance, but not enough to cover your injuries? That is where underinsured motorist (UIM) coverage comes in.

Example: You have $75,000 in medical bills and lost wages. The at-fault driver only carries the state minimum -- say $25,000 per person. Your UIM coverage can make up the difference, up to your own policy limits.

How UIM Calculations Work

States handle UIM differently:

• Difference/gap states (including Georgia, Illinois, and others): Your UIM coverage pays the difference between the at-fault driver's limits and your UIM limits. If the at-fault driver has $25,000 and your UIM limit is $100,000, UIM pays up to $75,000.
• Add-on states (including California, Colorado, and others): Your UIM coverage pays in addition to whatever the at-fault driver's insurance paid. If you receive $25,000 from the at-fault driver and have $100,000 in UIM, you could potentially recover up to $125,000 total.

The add-on method is generally more favorable to policyholders.

What About Hit-and-Run Accidents?

If the driver who hit you fled the scene, your UM coverage applies in most states. A hit-and-run driver is treated the same as an uninsured driver for UM claim purposes.

To file a hit-and-run UM claim, you typically need to:

1. File a police report -- This is essential for documenting the hit-and-run and is usually required by the insurance company
2. Report the claim to your own insurance promptly -- Most policies have notification deadlines
3. Document everything -- Photos, witness contact information, any description of the fleeing vehicle, dashcam footage
4. In some states -- You may need to demonstrate that the hit-and-run vehicle actually made contact with your vehicle (not just caused you to swerve)

Georgia: A Detailed Example

Georgia provides a good illustration of how UM/UIM coverage works in practice.

Georgia law (O.C.G.A. 33-7-11) requires every auto insurance policy to include UM coverage unless you specifically reject it in writing. This means:

• If you never signed a written rejection, your policy includes UM coverage by default
• Your UM limits match your liability limits unless you chose lower limits
• UIM coverage is also required to be offered alongside UM coverage
• Georgia is a "difference" state for UIM calculations

Stacking in Georgia

If you have multiple vehicles on your policy, Georgia allows you to stack your UM coverage unless your policy specifically prohibits it. Stacking means combining the UM limits from each vehicle to increase your total available coverage.

Example: Two cars on your policy, each with $50,000 in UM coverage. Stacking gives you $100,000 in total UM coverage for a single claim.

Filing a UM/UIM Claim in Georgia

The process involves:

1. Notify your insurance company of the accident and the other driver's uninsured (or underinsured) status
2. Provide the same evidence you would submit in any injury claim -- police report, medical records, lost wage documentation
3. Negotiate with your own insurer, which may resist paying full value
4. If needed, file a lawsuit against your own insurer for UM/UIM benefits

How Other Major States Handle UM/UIM

California

• UM/UIM must be offered but can be rejected in writing
• UIM is calculated on an add-on basis (more favorable to policyholders)
• Stacking is generally not allowed for policies issued after 1995
• Arbitration is available for UM/UIM disputes

Texas

• UM/UIM must be offered, and the offer must be in the specific form required by statute
• PIP (Personal Injury Protection) is also mandatory unless rejected -- this provides an additional layer of no-fault coverage
• Stacking rules depend on policy language

Florida

• UM is not required but must be offered
• Florida is a no-fault state, so PIP ($10,000) covers initial medical expenses regardless of fault
• UM becomes critical for injuries exceeding PIP limits when the at-fault driver is uninsured

New York

• UM coverage is mandatory and cannot be waived
• Minimum UM limits are $25,000/$50,000
• Supplementary uninsured motorist (SUM) coverage provides additional protection above the mandatory minimum

Michigan

• Michigan's unique no-fault system provides unlimited PIP benefits (for policies issued before July 2020) or tiered PIP options
• UM coverage is available but works differently because PIP covers most medical costs regardless of fault
• Uninsured driver coverage in Michigan primarily applies to pain and suffering claims that exceed the serious impairment threshold

Can You Sue the Uninsured Driver Directly?

Yes -- in every state, you can sue the at-fault driver directly, whether or not they have insurance. The practical question is whether they have any assets to collect from. If the driver is uninsured because they cannot afford insurance, they likely cannot afford to pay a judgment either.

That said, there are situations where a direct lawsuit makes sense:

• The driver owns property, a home, or other valuable assets
• The driver was working at the time (the employer may be liable under respondeat superior)
• Other parties share fault (a bar that over-served the driver, a vehicle owner who lent their car to a known unlicensed driver, a rental car company, etc.)
• The driver may have future earnings that could satisfy a judgment

Protecting Yourself Before an Accident

The best time to protect yourself from uninsured drivers is before an accident happens:

• Do not reject UM/UIM coverage -- It is some of the most valuable coverage on your policy and is relatively inexpensive
• Consider carrying higher UM/UIM limits -- The state minimum may not be enough for a serious injury. Matching your UM/UIM limits to your liability limits is a common recommendation
• Ask about stacking -- If you have multiple vehicles, ask whether your policy allows stacking of UM coverage
• Add MedPay coverage -- Medical Payments coverage pays your medical bills regardless of fault, giving you an additional safety net with no deductible
• Review your policy annually -- Make sure your coverage keeps up with your needs and that you have not inadvertently dropped UM/UIM coverage during a policy change
• Understand your state's rules -- Know whether UM is mandatory, whether it can be rejected, and how UIM is calculated (difference vs. add-on)

Filing a UM/UIM Claim: What to Expect

Filing a UM/UIM claim is different from a typical third-party claim because you are making a claim against your own insurance company. Here is what to expect:

Your Own Insurance Company May Not Be on Your Side

Even though you are their customer, the UM/UIM claims department's job is to pay as little as possible. They may:

• Dispute the severity of your injuries
• Argue that some of your treatment was not necessary
• Try to shift fault onto you (to reduce payment under comparative negligence rules)
• Make lowball settlement offers
• Delay the process hoping you will accept less

You Have the Right to Fight Back

You have the same right to negotiate and, if necessary, file a lawsuit or demand arbitration against your own insurer for the UM/UIM benefits you are owed. Many states provide for mandatory arbitration of UM/UIM disputes, which can be faster than a lawsuit.

Key Takeaways

• About 1 in 8 drivers nationwide is uninsured -- in some states, it is closer to 1 in 4
• UM coverage pays for injuries when the at-fault driver has no insurance; UIM covers the gap when their insurance is insufficient
• In many states, UM coverage is included in your policy by default unless you signed a written rejection
• Hit-and-run accidents are generally treated like uninsured driver claims
• Your own insurance company may fight to pay you less on a UM/UIM claim -- be prepared to negotiate
• Stacking UM coverage across multiple vehicles can significantly increase your available recovery
• Consider carrying UM/UIM limits that match your liability limits -- it is some of the most valuable and affordable coverage available

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