Uninsured motorist coverage steps into the shoes of an absent liability insurer. It pays what the insured would have recovered from the at-fault driver had that driver carried insurance, subject to the UM limit.
Most forms also cover phantom vehicle or hit-and-run claims, though many states require independent corroboration of the unidentified vehicle's involvement.
Alternative Names:
UM Coverage, Uninsured Motorist Benefits
Why it Matters?
UM claims are first-party in form but third-party in substance, since the carrier must litigate the liability and damages of a stranger's conduct against its own policyholder. That posture creates simultaneous exposure to breach of contract and first-party bad faith, and it changes the adjuster's obligations compared to a standard liability file.
Frequently Confused with
Related terms
Frequently asked questions
Does UM coverage apply to hit-and-run accidents?
Can the UM carrier raise the at-fault driver's defenses?
