If a driver causes a crash but doesn’t have enough bodily injury liability insurance to cover the injuries they caused, underinsured motorist coverage may provide another source of recovery. Whether it applies depends on the available policies, who was injured, the facts of the crash, and the extent of the losses. Florida’s Department of Financial Services describes uninsured/underinsured motorist coverage as protection for bodily injuries when an at-fault driver has no bodily injury coverage or insufficient liability limits.
Key takeaways
A driver is underinsured when their available liability coverage is insufficient to cover a valid injury claim — for example, when medical treatment, missed work, and other losses exceed the amount available from that driver’s policy. That gap doesn’t automatically mean the injured person will receive payment from another insurer; a claim still depends on applicable coverage, liability, damages, and policy terms.
Underinsured motorist coverage is commonly discussed as part of UM coverage. It’s different from collision coverage, which concerns vehicle damage, and from personal injury protection (PIP), which provides certain benefits without first establishing who caused the crash.
An injured person may first investigate the at-fault driver’s available liability coverage. If the injury claim exceeds that coverage, an applicable UM policy may become important. The UM insurer can review whether its policy covers the person and the accident, whether the other driver was legally responsible, and what losses resulted from the crash. The existence of a UM policy doesn’t determine the value of a claim — insurers may disagree about fault, whether particular treatment relates to the accident, the extent of an injury, or the amount of a claimed loss, and the policy’s limits and terms also matter.
A proposed settlement with the at-fault driver’s liability insurer can affect an underinsured motorist claim. Florida law sets out a specific notice process when a settlement would leave a UM claim: written notice of the proposed settlement generally must be sent by certified or registered mail to all UM insurers providing coverage, and the statute then gives the UM insurer a set period (generally 30 days after receipt) to respond under that process. Before signing a release or finalizing a settlement, it’s sensible to have the applicable policies and notice requirements reviewed — the wording of a release and the sequence of communications can matter.
Depending on the dispute, useful records may include:
Keeping copies of offers, notices, releases, and proof of delivery can be especially useful when a proposed settlement is involved.
No. Florida PIP provides specified benefits under its own rules, regardless of who was at fault, and Florida law generally ties PIP medical benefits to receiving initial services and care within 14 days after the accident. A potential UM claim raises separate questions about coverage, fault, and damages.
1. Is underinsured motorist coverage required in Florida? No. Florida drivers may reject uninsured/underinsured motorist coverage or choose lower limits under the procedures in state law. Check your policy’s declarations page and coverage selection documents to see what you purchased.
2. Does “full coverage” mean I have underinsured motorist coverage? No. “Full coverage” is an informal phrase, not the name of a specific set of benefits. Ask your insurer for your declarations page and look for uninsured motorist (UM) coverage and its limits.
3. Can a passenger make an underinsured motorist claim? Possibly. Coverage may be available through a policy covering the vehicle or through another policy that insures the passenger. The answer depends on the policies and the passenger’s circumstances, so identify all potentially applicable coverage.
4. What if I was driving someone else’s car? You may still have a potential UM claim. The policy covering that vehicle and any policy under which you’re insured should be reviewed. Florida’s rules for coverage involving a vehicle you don’t own can also depend on whether you chose coverage with limits on combining policies.
5. Can more than one UM policy apply to the same crash? Sometimes. This is often called stacking, but the answer depends on the policies and the coverage selected. Florida law also permits a form of UM coverage with limitations on adding coverage for multiple vehicles, so don’t assume the limits printed beside each vehicle can automatically be combined.
6. Does UM coverage pay to repair my car? The UM coverage discussed here concerns bodily injury. Collision or another applicable property-damage coverage may address vehicle repairs — check the separate coverages on your policy.
7. What if the at-fault driver says they have insurance but won’t provide the policy limits? Report the crash to your insurer and provide the information you have, such as the driver’s name, insurer, and crash report number. The available liability coverage needs to be confirmed before you can assess whether it’s insufficient for an injury claim, so don’t treat an unverified statement about coverage as the final answer.
8. Will my UM insurer automatically pay the difference between my losses and the other driver’s policy limit? No. A UM claim requires a review of legal responsibility, covered losses, available liability coverage, and your UM policy. A difference between two numbers doesn’t by itself establish what an insurer must pay.
9. How long does an underinsured motorist claim take? There’s no single timeline. The insurer may need to evaluate coverage, responsibility, medical information, and the extent of the losses. Florida’s Department of Financial Services indicates there is no Florida statute setting a general timeframe in which an automobile claim must be settled.
10. Can I get help if my insurer won’t explain its coverage decision? Yes. Ask the insurer to explain its decision in writing and identify the policy provisions it relied on. Florida’s Department of Financial Services accepts consumer concerns involving coverage issues and claim disputes, and you may also ask an attorney to review the policy and the insurer’s response.
When an at-fault driver’s insurance may not be enough to cover your injuries, questions can arise about which policies apply, what coverage is available, and how a proposed settlement could affect an underinsured motorist claim.
Inkelaar Law can review the circumstances and help you understand the factors that may affect your options. You may contact us to request a free consultation.
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Disclaimer: The information in this article is intended for general educational and informational purposes only. It is not legal advice and should not be interpreted as legal advice for any specific situation. Reading this content does not establish an attorney–client relationship. If you have questions about your circumstances or need guidance on a legal matter, consider consulting with a licensed attorney in your state.
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