A car accident brings immediate questions about how you will pay for your recovery. You might assume that because the other driver has insurance, you are safe. However, many Utah drivers carry only the state-mandated minimum liability coverage.
When a severe crash leads to surgery, rehabilitation, and months of lost income, that minimum policy limit vanishes almost instantly. Utah underinsured motorist claims become your financial lifeline when the at-fault driver’s insurance runs dry. This coverage, which sits within your own auto policy, steps up to pay the difference between what the other driver has and what your injuries actually cost.
You need to know how to unlock these benefits without falling into legal traps. Insurance companies often try to avoid paying UIM claims by enforcing strict procedural rules. They might demand you sign away your rights before accessing your own policy.
We reject these tactics. Parker & McConkie analyzes your insurance contract, negotiates with both insurers simultaneously, and ensures you receive every dollar available to cover your losses. We handle the complex stacking of policies so you can focus on getting better.
Core insurance concepts
- Minimums Are Low: Utah law requires only $25,000 in bodily injury liability coverage per person, which is rarely enough for serious accidents.
- Exhaustion Rule: You generally must collect the full policy limit from the at-fault driver before your UIM coverage kicks in.
- Waiver Risks: Insurance companies often use signed waivers to deny UIM coverage, claiming you rejected it when you bought your policy.
What Is Utah Underinsured Motorist Insurance?
Underinsured Motorist (UIM) coverage is an optional insurance benefit that pays for bodily injury damages when the at-fault driver’s liability limits are insufficient to cover your full costs.
This coverage acts as a secondary layer of protection. If your medical bills and lost wages total $100,000, but the other driver only has $25,000 in coverage, UIM pays the remaining $75,000 (up to your policy limit). It effectively allows you to determine your own level of protection against negligent drivers who carry cheap insurance.
Why is the $25,000 Minimum Insufficient?
Utah Code § 31A-22-304 mandates that all drivers carry a minimum of $25,000 in bodily injury liability per person. While this sounds like a lot of money, modern medical costs deplete it rapidly.
A single helicopter transport can cost $20,000. An emergency surgery often exceeds $50,000. If you suffer a fracture requiring hardware or a traumatic brain injury, $25,000 covers only a fraction of your initial care.
We see the financial devastation this low limit causes.
- ER Visits: The initial trauma assessment and scans can consume $10,000 to $15,000 before you even get admitted.
- Surgeries: An orthopedic surgery to repair a broken leg can easily cost $40,000, leaving you with a deficit immediately.
- Rehabilitation: Post-acute care and physical therapy add thousands of dollars per month to the bill.
- Lost Wages: If you cannot work for three months, the loss of income alone might exceed the other driver’s policy limit.
We calculate your total damages to prove that the other driver is underinsured. We use this math to trigger your UIM benefits.
How Does the Exhaustion Rule Work?
Utah law generally requires you to exhaust the at-fault driver’s liability limits before your UIM carrier has to pay. This means you must settle with the other driver’s insurance for their full $25,000 (or whatever their limit is).
If you accept $20,000 to close the case quickly, your UIM insurer can argue that you didn’t exhaust the limits and deny your claim.
We manage this delicate process to preserve your rights.
- Tentative Settlements: We reach a tentative agreement with the at-fault driver for their policy limits.
- Notice to UIM: We notify your UIM carrier of the offer and give them the opportunity to waive their subrogation rights (the right to sue the at-fault driver later).
- Acceptance: Once we get permission, we accept the liability limits and then proceed with the UIM claim for the remaining balance.
We ensure that you follow these steps exactly to prevent accidentally voiding your own coverage.
What Are the 2025 Updates to Utah Code § 31A-22-305.3?
Recent legislative updates to Utah Code § 31A-22-305.3 clarify how UIM limits are calculated and enforced. The law now provides more specific guidance on the credit the UIM insurer receives for the liability payment. It also reinforces the statute of limitations for these claims.
We use these updates to argue for maximum coverage.
- Limit Calculation: The law clarifies that UIM coverage is “excess” coverage, meaning it stacks on top of the liability limits rather than being reduced by them (in most modern policies).
- Statute of Limitations: The law affirms a four-year statute of limitations for contract-based UIM claims, giving you time to resolve the underlying liability case first.
- Disclosure Requirements: Insurers must be transparent about the limits available and cannot hide coverage details during negotiations.
We stay current on these statutes. We use the law to force the insurance company to be transparent and fair.
What Is a Step-Down Provision?
Some insurance policies contain a step-down provision. This clause reduces your coverage limits to the state minimum if a family member (who isn’t the named insured) is driving the car. Insurance companies use this to slash their payout obligations.
We fight against these restrictive clauses.
- Policy Analysis: We review the definitions of insured to argue that the driver was fully covered under the main policy limits.
- Ambiguity: If the policy language is vague, Utah courts often rule in favor of the policyholder. We exploit any ambiguity to maintain higher limits.
- Disclosure Failures: If the insurer did not properly disclose the step-down provision, we argue it is unenforceable.
We refuse to let fine print destroy your financial safety net. We demand the full coverage you paid for.
How Do Insurance Companies Use Waivers to Deny Claims?
Insurers must offer UIM coverage, but you can reject it in writing. Many people unknowingly sign a waiver to lower their monthly premiums. After an accident, the insurance company produces this waiver to deny the claim.
We scrutinize these waivers for legal validity.
- Signature Verification: We verify that you actually signed the waiver and that it wasn’t forged or robo-signed.
- Informed Consent: We investigate if the agent explained what you were giving up. If they didn’t, the waiver might be invalid.
- Form Compliance: The waiver must meet specific statutory requirements regarding font size and language. If the form is non-compliant, the rejection is void.
We challenge the validity of any rejection form. We fight to reinstate the coverage you need.
The Strategy of Stacking UIM Coverage
Utah law allows for the stacking of UIM coverage in certain circumstances, though it is often limited by policy language. Stacking refers to combining the UIM limits from multiple vehicles on the same policy or across different policies to increase the total available funds.
For instance, if you have two cars each with $100,000 in UIM coverage, you might be able to stack them to access $200,000 for your injury. We analyze your policy for stacking opportunities.
- Intra-Policy Stacking: We check if your policy explicitly prohibits combining limits for vehicles listed on the same declaration page.
- Inter-Policy Stacking: We look for separate policies within your household that might provide additional layers of coverage.
- Anti-Stacking Clauses: We challenge ambiguous anti-stacking language to maximize the pool of money available for your recovery.
We dig deep into the contract to find every possible avenue for additional compensation.
The Importance of UIM for Passengers
Passengers injured in a crash have multiple potential sources of UIM coverage. If you were riding in a friend’s car and an underinsured driver hit them, you can access the UIM coverage on the car you were riding in.
If that is not enough, you can then turn to your own UIM policy on your personal vehicle. We coordinate these multiple claims to ensure no money is left on the table.
- Priority of Coverage: We determine which policy is “primary” (usually the host vehicle) and which is “excess” (your own policy).
- Multiple Claimants: If several passengers were injured, the host vehicle’s UIM limits might be split among everyone; your personal policy becomes vital to cover the shortfall.
- Household Members: We investigate if you are covered under a resident relative’s policy if you do not have your own car.
We manage the complexity of multiple insurers. We ensure every applicable policy contributes to your recovery.
Why Do You Need a Lawyer for a UIM Claim?
Filing a UIM claim pits you against your own insurance company. They stop being your neighbor and become your adversary. They have a team of adjusters and lawyers working to pay you as little as possible.
Trying to navigate the exhaustion rules and policy limits alone is a recipe for failure. We provide the legal muscle to level the playing field.
- Coverage Stacking: We investigate if you can stack policies from multiple vehicles to increase your total coverage.
- Valuation Disputes: When the insurer claims your injuries aren’t worth the extra money, we use medical experts to prove them wrong.
- Bad Faith: If your insurer unreasonably delays or denies the claim, we hold them accountable for bad faith practices.
We handle the legal stress. You focus on healing.
To better understand how legal representation protects your rights, review our guide explaining what a car accident lawyer does and how they build a winning claim.
How Do We Calculate Your Total Damages?
To trigger a UIM claim, we must prove that your damage exceeds the at-fault driver’s limits. This requires a comprehensive calculation of every loss you suffered.
We build a detailed financial model for your case.
- Economic Damages: We tally medical bills, future care costs, and lost earning capacity.
- Non-Economic Damages: We quantify pain, suffering, and the loss of enjoyment of life.
- Offsets: We account for any payments already made by PIP or the at-fault driver to show the exact amount the UIM insurer owes.
We present a clear demand that shows exactly why the liability limits were not enough. We force the UIM carrier to cover the deficit.
Frequently Asked Questions
Will my rates go up if I file a UIM claim?
Generally, no. Utah law prohibits insurers from raising your rates solely for filing a claim if the accident was not your fault. UIM coverage exists for this specific purpose.
How long does a UIM claim take?
It depends on how quickly we can settle the underlying liability claim. Once that is resolved, the UIM claim can take another few months to negotiate. We work to expedite the process.
Can I file a UIM claim if I was a passenger?
Yes. You can file a claim against the driver’s UIM policy or your own UIM policy if you have one. We help you identify all available coverage.
What if the at-fault driver has no insurance?
Then you file an Uninsured Motorist (UM) claim, not a UIM claim. The process is similar, but you don’t have to exhaust any liability limits first.
Do I have to pay a deductible for UIM?
No. UIM coverage typically does not have a deductible for bodily injury claims. You receive the full amount of the settlement.
Don’t Let Minimum Limits Limit Your Recovery
The other driver’s cheap insurance should not dictate your quality of life. Parker & McConkie serves accident victims in Midvale, Sandy, Murray, and throughout Utah.
We provide the strength, the strategy, and the dedication you need to win.
