Uninsured motorist clause

An 'Uninsured Motorist Clause' is a provision commonly found in United States automobile insurance policies that provides for a driver to receive damages for any injury he or she receives from an uninsured, negligent driver. The owner of the policy pays a premium to the insurance company to include this clause. Although not exclusive, this coverage is typically added to an automobile insurance policy. In the event of a qualifying accident, the insurance company pays the difference between what the uninsured driver can pay and what the injured driver would be entitled to as if the uninsured motorist had proper insurance.

It is mandatory for the insurance carrier to provide such coverage in some states, such as Pennsylvania, Illinois, Maryland, and New York.

Who is an uninsured motorist for the purpose of an uninsured motorist clause?

The first category of persons who may trigger an uninsured motorist provision consists of individuals who do not have liability coverage for the vehicle he or she is operating. In most states, it is a crime to be uninsured in this manner.

The next category consists of hit and run drivers. When an individual flees the scene of an accident without leaving sufficient information to identify him or herself, the individual is considered uninsured for the purposes of an uninsured motorist provision. Note, however, that a positive ID of the license plates in a hit and run accident will often be considered by insurance companies sufficient information to identify the negligent hit and run driver. Such identification will often lead to the denial of an uninsured motorist claim, as insurance companies will often litigate the claim, bringing in the registered owner of the vehicle with matching plates, even when that person denies involvement in the accident.

A third category (in some states) is a driver that does have liability coverage for his or her vehicle, but the dollar amount of that driver's liability coverage is less than the dollar amount of the victim's uninsured motorists coverage. This is sometimes also referred to as an underinsured motorist clause.

Uninsured Motorist Bodily Injury Coverage covers your medical expenses, loss wages, and other injury related expenses in an instance where the other driver is not insured. This coverage applies only if the other party is found at fault for the incident. Depending on the state your policy is your insurance company might or might not require you to identify the other vehicle/driver. Many states will cover a hit and run incident.

Litigating an uninsured motorist claim

Most states require that you sue the uninsured motorist (or a fictitious John Doe hit and run driver when litigating the second category of uninsured motorist claim) for your injuries in order to prevail on a breach of contract action against your insurance carrier. Some states such as Virginia require that you actually obtain a judgment against the uninsured motorist (while serving your uninsured motorist carrier in the lawsuit so that your carrier can defend the suit) and then demand payment from the uninsured motorist carrier prior to suing your carrier for any breach of an uninsured motorist provision. Normally there is no need to sue the carrier in such states as Virginia unless there is a dispute as to coverage. Liability is rarely an issue in cases against John Doe defendants, and in any regard, must be litigated in the first suit against the John Doe, if at all. The insurance company will ordinarily pay the judgment, up to your policy limits, once a court determines that an uninsured motorist was at fault. Some states laws also allow additional insurance coverage to the insured policy holder through policy stacking provisions, whereby a claim may be made against multiple uninsured motorist policies.