Car accidents can be overwhelming, especially when you discover the other driver is either uninsured or doesn’t have enough insurance to cover your damages. In South Dakota, drivers have options to protect themselves in these situations, but understanding the difference between uninsured motorist (UM) claims and underinsured motorist (UIM) claims is crucial. Let’s break down these two types of coverage and how they work.
What is Uninsured Motorist (UM) Coverage?
Uninsured motorist coverage is designed to protect you if you’re involved in an accident with a driver who does not have any liability insurance. Despite state laws requiring drivers to carry minimum insurance coverage, some drivers are uninsured. If such a driver causes an accident, your UM coverage steps in to pay for your medical bills, lost wages, pain and suffering, and other damages, up to the limits of your policy.
What is Underinsured Motorist (UIM) Coverage?
Underinsured motorist coverage applies when the at-fault driver has liability insurance, but their coverage limits are insufficient to fully compensate you for your damages. For example, if your total damages are $100,000 but the at-fault driver’s policy only covers $50,000, your UIM coverage can help bridge the gap, up to the limits of your policy.
Key Differences Between UM and UIM Claims
Triggering Event:
UM claims arise when the at-fault driver has no insurance.
UIM claims occur when the at-fault driver’s insurance coverage is inadequate.
Coverage Purpose:
UM coverage ensures you are not left uncompensated due to the other driver’s lack of insurance.
UIM coverage supplements the at-fault driver’s insufficient insurance to cover the remainder of your damages.
Policy Limits:
In both UM and UIM claims, the amount you can recover depends on the limits of your policy. South Dakota law requires minimum UM/UIM coverage of $25,000 per person and $50,000 per accident, but higher limits are available.
Legal Process:
UM claims are filed directly with your own insurance company.
UIM claims involve negotiating with both the at-fault driver’s insurance company and your own.
How to File a UM or UIM Claim in South Dakota
If you’re involved in an accident with an uninsured or underinsured driver, follow these steps:
Report the Accident: Notify law enforcement and file an accident report. This documentation will be critical for your claim.
Contact Your Insurance Company: Inform your insurer about the accident and indicate whether you suspect the other driver is uninsured or underinsured.
Gather Evidence: Collect medical records, repair estimates, and any other documentation to support your claim.
Review Your Policy: Understand the limits and conditions of your UM/UIM coverage.
Consult an Attorney: If your claim is complex or contested, an experienced personal injury attorney can help you navigate the process.
Why UM/UIM Coverage Matters
While South Dakota requires drivers to carry liability insurance, not everyone complies, and minimum coverage limits often fall short of covering significant injuries or property damage. UM and UIM coverage provide a safety net, ensuring you have financial protection regardless of the other driver’s insurance status.
Conclusion
Understanding the difference between uninsured and underinsured motorist claims in South Dakota can make a significant difference in your recovery after an accident. Both types of coverage are designed to protect you, but they address different scenarios. Reviewing your auto insurance policy and ensuring adequate UM/UIM coverage can offer peace of mind and financial security when the unexpected happens.
