Getting hit by someone who caused the accident is bad enough. Finding out their insurance won’t cover your medical bills, lost wages, and everything else? That’s when things get complicated.
It happens more often than people realize. Someone causes a serious accident, their insurance pays out their policy limit, and the injured person is left holding bills that far exceed what they received. The gap between what insurance covers and what injuries actually cost can be substantial.
Why Policy Limits Create Problems
Most drivers carry the minimum insurance their state requires. Those minimums are often surprisingly low—enough to cover minor accidents but nowhere near adequate for serious injuries.
A few days in the hospital can cost more than many drivers carry in coverage. Add surgery, physical therapy, months of treatment, and lost income, and you’re looking at bills that make even decent insurance policies look inadequate.
The at-fault driver’s insurance company will pay up to their policy limit. Once they hit that number, they’re done. They don’t care that your damages are several times what they’re paying. Their obligation ends at the policy limit.
What Underinsured Motorist Coverage Actually Does
This is where your own insurance comes into play—specifically, underinsured motorist (UIM) coverage. Most people have it without really understanding what it does.
UIM coverage kicks in when the at-fault driver’s insurance isn’t enough. If your damages significantly exceed what the other driver’s policy covers, your UIM coverage can help fill that gap.
The coverage amount depends on what you bought when you got your policy. Working with a Beaumont Personal Injury Attorney helps navigate the claim process with your own insurance company, which can be surprisingly adversarial even though you’ve been paying premiums for years.
Here’s the catch: you’re now making a claim against your own insurance company. And insurance companies—even your own—don’t just hand over money without a fight.
The Process Gets Messy
Filing a UIM claim isn’t as simple as sending in receipts. Your insurance company will investigate just like the at-fault driver’s insurer did. They’ll review medical records, question treatment necessity, and look for reasons to minimize what they pay.
You have to prove your damages exceed the at-fault driver’s policy limit. That means documenting everything—medical bills, treatment records, wage loss statements, expert opinions on future care needs. The more severe the injury, the more documentation is required.
Your own insurance company might argue that some of your treatment wasn’t necessary. Or that you’re exaggerating pain levels. Or that your injuries aren’t as serious as you claim. It feels bizarre fighting with a company you’ve paid premiums to for years, but it happens constantly.
Going After the Driver Personally
What if the at-fault driver has assets beyond their insurance? In theory, you can sue them personally for damages their insurance doesn’t cover.
In reality, most people who carry minimum insurance don’t have significant assets to go after. They might own a modest house or have some retirement savings, but collecting on a judgment can be nearly impossible if they don’t have money.
Even if you win a judgment that far exceeds what their insurance paid, getting the difference from someone without assets means garnishing wages for years or decades. It’s often not worth the legal fees and effort.
There are exceptions. Sometimes the at-fault driver owns a business, has substantial equity in property, or comes from wealth. In those cases, pursuing personal assets makes sense. But these situations are rare.
When Multiple Parties Share Fault
Some accidents involve more than one at-fault party. Maybe one driver caused the initial collision, but another driver’s actions made things worse. Or a trucking company shares liability with their driver.
When multiple parties bear responsibility, you can potentially collect from each of their insurance policies. Multiple sources of coverage means more total insurance available before you’d need to tap your own UIM coverage.
But sorting out who’s responsible for what gets legally complex. Insurance companies will argue about which driver caused which injuries. They’ll point fingers at each other to reduce their own payout obligations.
Why People Don’t Have Enough UIM Coverage
UIM coverage is relatively cheap compared to liability coverage, but many people skip it or buy minimal amounts to keep premiums low. They figure they’ll never need it, or they don’t fully understand what it protects against.
The problem is that inadequate coverage creates a nightmare scenario where you’re seriously injured, the at-fault driver’s insurance runs out quickly, and your own policy doesn’t have enough UIM coverage to make up the difference.
Higher UIM limits cost more in premiums, but the difference in annual cost is usually modest compared to the protection it provides. Carrying UIM coverage that matches or exceeds your liability limits makes sense for most people.
Medical Bills Don’t Wait
While you’re fighting with insurance companies over UIM coverage, medical bills keep arriving. Hospitals and doctors want payment. Collection agencies get involved. Credit scores take hits.
Some medical providers will wait for settlement, especially if you have an attorney who can negotiate payment arrangements. Others won’t. They expect payment regardless of whose insurance is supposed to cover it.
Health insurance might pay some bills initially, but they’ll want reimbursement from any settlement you receive. That creates another layer of complexity when the money finally comes through.
The Timeline Problem
UIM claims take time. Insurance companies aren’t in a hurry to pay out, especially on larger claims. They’ll investigate thoroughly, question everything, and drag out negotiations.
Meanwhile, you might be out of work, accumulating debt, and struggling financially. The pressure to accept a lower settlement just to get money coming in becomes intense.
This is exactly what insurance companies count on. They know injured people need money now, and they use that pressure to reduce what they pay. Patience becomes difficult when bills are piling up and income has stopped.
What Actually Makes a Difference
The key to dealing with inadequate insurance is preparation and documentation. Keep detailed records of everything—every medical appointment, every bill, every day of missed work, every impact on daily life.
Don’t accept the first UIM settlement offer. Insurance companies start low expecting negotiation. The initial offer rarely reflects what they’re actually willing to pay.
Understanding your own policy matters too. Many people don’t know what coverage they have until they need it. Reviewing your policy now, before an accident, lets you adjust coverage if it’s inadequate.
The Bottom Line
When the at-fault driver’s insurance isn’t enough, you’re not automatically out of luck. But the path to full compensation gets harder. Your own UIM coverage becomes critical. The willingness to fight your own insurance company matters. Proper documentation makes or breaks the claim.
Most people never think about underinsured motorists until they become the person dealing with one. By then, it’s too late to increase your coverage or change your approach. The best time to think about this is before you ever need it.
