What if the at-fault driver has no insurance?
Your own policy's uninsured motorist (UM) coverage steps in as if it were the other driver's insurer — this is exactly what UM exists for. If you carry it, you file with your own company.
About one in eight US drivers is uninsured, and many more carry only state minimums. Underinsured motorist (UIM) coverage similarly fills the gap when the at-fault driver's limits are too low for your injuries.
A UM/UIM claim is still an adversarial negotiation — your insurer becomes the party paying, and the same documentation rules apply.
The short version
- Your own uninsured motorist (UM) coverage steps into the at-fault driver's shoes. If you carry it, you file with your own carrier.
- Underinsured motorist (UIM) coverage fills the gap when the other driver has a policy but the limits are far below your injuries — the more common scenario.
- Roughly one in eight US drivers is uninsured, and many more carry only state minimums that a single hospital stay exhausts.
- A UM/UIM claim is still adversarial. Your insurer is now the party writing the check, and it evaluates the claim the same way any carrier would.
Find out what you already have
Pull your declarations page, not your policy booklet. It lists your UM and UIM limits per person and per accident, along with medical payments (MedPay) or personal injury protection (PIP) if your state has it. Many drivers carry UM without knowing it, because it is mandatory or default-included in a number of states.
Also check collision coverage for the vehicle damage and MedPay for immediate medical bills — MedPay typically pays regardless of fault and does not require you to prove anything about the other driver.
How a UIM claim actually works
Underinsured claims are more common than uninsured ones. The at-fault driver has a minimum-limits policy, that policy is exhausted quickly by your medical bills, and the remainder of your damages has nowhere to go except your own UIM coverage.
The sequence matters. Most policies require you to notify your own carrier of a potential UIM claim early, and many require written consent before you settle with the at-fault driver's insurer. Settling first without that consent can void your UIM claim entirely — this is one of the most consequential procedural traps in injury claims.
Once your carrier is on the hook, expect the same process any liability claim gets: recorded statement requests, medical record reviews, and an opening offer well below your demand. The fact that you pay them premiums does not change how the file is evaluated.
When there is no coverage at all
Suing an uninsured driver personally is legally available and usually economically pointless — a driver who could not afford insurance rarely has assets to collect against. A judgment you cannot enforce has little practical value.
Look instead for other responsible parties: an employer if the driver was working, a vehicle owner who negligently entrusted the car, a bar or host under dram-shop laws in some states, or a government entity for a road-design or maintenance defect. Several states also operate crime-victim compensation funds that can apply where the driver fled or was impaired.
Health insurance still covers your treatment, and MedPay or PIP may cover the first tier of bills. Neither compensates pain and suffering, but both keep the medical debt from compounding while other avenues are explored.
Follow-up questions
The questions people actually search for on this topic, answered in full.
Will my rates go up if I use my own UM coverage?
Many states prohibit surcharging a policyholder for a not-at-fault claim, and UM claims are by definition not-at-fault. Practice varies by state and carrier, so it is worth confirming with your own insurer — but this concern should not stop you from using coverage you have already paid for.
How do I know if I have uninsured motorist coverage?
Check the declarations page of your auto policy, usually a one- or two-page summary listing each coverage and its limits. Look for 'UM', 'UIM', or 'uninsured/underinsured motorist'. Your agent can also confirm it in a two-minute call.
What if the other driver fled the scene?
A hit-and-run is generally treated as an uninsured motorist claim under most policies, though many carriers require that you report it to police within a short window — often 24 hours. That police report is frequently a condition of coverage, so make it immediately.
Can I settle with the other driver's insurer and still claim UIM?
Only with your own carrier's written consent in most policies. Settling and signing a release without that consent destroys your insurer's right to pursue the at-fault driver, and policies commonly void the UIM claim as a result. Get the consent in writing before you sign anything.
Does my UM coverage cover passengers in my car?
Usually yes — UM coverage typically extends to occupants of the insured vehicle and often to household family members injured as pedestrians or in other vehicles. The specific definitions are in the policy, and they vary.
How much UM/UIM coverage should I carry?
As a general principle, matching your UM/UIM limits to your liability limits is the common recommendation, since it is inexpensive relative to the protection. This is a coverage decision, not legal advice — discuss the specific numbers with a licensed agent.
Fees, taxes and what you actually take home
The questions people actually search for on this topic, answered in full.
How much does a personal injury lawyer take from a settlement?
Contingency fees typically run 33% to 40%. The common structure is one third if the case settles before a lawsuit is filed, rising to 40% once litigation begins or the case approaches trial. Case expenses — filing fees, records, expert reports — are usually deducted on top of the fee rather than out of it, so ask specifically which structure the agreement uses.
Are personal injury settlements taxable?
Compensation for physical injury or physical sickness is generally not taxable federally. Portions allocated to lost wages, punitive damages, and interest generally are, and previously deducted medical expenses can be taxable when reimbursed. How the settlement is allocated among those categories has real consequences, so it is worth addressing before the documents are signed rather than at tax time.
How much of my settlement do I actually take home?
The order of payment is liens and medical providers first, then attorney fees and case expenses, then you. On a $100,000 settlement with a one-third fee, $4,000 in costs, and $15,000 in medical liens, the net is roughly $48,000 — and lien negotiation is frequently where the largest gains are available, because providers often accept substantial reductions.
How long does it take to get paid after a settlement is signed?
The insurer typically issues the check within two to four weeks of receiving the signed release, and most states require payment within a reasonable period commonly understood as 30 to 45 days. Disbursement to you then depends on how quickly liens are resolved, which can add several weeks.
Should I accept the insurance company's first offer?
Usually not. Industry analysis consistently places first offers at roughly half of a claim's fair value, and adjusters are evaluated in part on savings against reserves. Cases involving a genuine lowball frequently resolve for several times the opening number once the file is properly documented — but the first offer is also final if you accept it, because the release closes the claim permanently.
Do I have to repay my health insurance from a settlement?
In most cases yes. Health insurers, Medicare, Medicaid, and hospitals hold subrogation or lien rights against injury recoveries. Those liens are frequently negotiable — sometimes substantially — and reducing them raises your net recovery dollar for dollar without any further negotiation with the insurer.
Related questions
- Should I accept the first settlement offer?
- Do I need a lawyer for a minor car accident?
- How is pain and suffering calculated?
- How much is a rear-end accident settlement worth?
Go deeper
What’s your claim worth?
See your estimated settlement range in sixty seconds — free, no sign-up, without leaving this page.
Estimated range
0/6 answered
General information, not legal advice. InjurySage is not a law firm and does not provide legal representation. Rules vary by state and change over time — verify anything affecting a deadline with a licensed attorney in your state. Updated August 2026.