Being injured by a driver who does not have enough insurance does not necessarily mean the at-fault driver’s policy is the only coverage available. In South Carolina, uninsured and underinsured motorist coverage can provide another source of compensation when the person who caused a car accident has no insurance or does not carry enough to cover the injuries they caused.
Although UM and UIM coverage are often discussed together, they apply in different situations. Uninsured motorist coverage applies when there is no liability insurance available from the at-fault driver, while underinsured motorist coverage can come into play when that driver has insurance but the available limits are not enough to cover the full claim. Understanding that difference matters because it affects which coverage applies, how the claim is handled, and how much insurance may ultimately be available.
Uninsured vs. Underinsured Motorist Coverage: The Core Difference
The difference between UM and UIM comes down to whether the at-fault driver has no insurance or simply does not have enough. In South Carolina, uninsured motorist coverage and underinsured motorist coverage address two different gaps in the at-fault driver’s insurance.
Uninsured motorist (UM) coverage applies when the driver who caused the crash has no liability insurance or, in certain circumstances, cannot be identified after a hit-and-run. South Carolina requires auto insurance policies to include UM coverage at least equal to the state’s minimum liability limits.
Underinsured motorist (UIM) coverage applies when the at-fault driver does have liability insurance, but the available coverage is not enough to fully compensate the injured person for their damages. UIM coverage is not mandatory in South Carolina, but insurers are required to offer it.
The easiest way to remember the difference is that UM addresses missing insurance, while UIM addresses insufficient insurance. In either situation, the coverage can become an important part of a personal injury claim when the at-fault driver’s policy cannot cover the losses caused by the crash.
Did You Know?
South Carolina requires uninsured motorist coverage, but underinsured motorist coverage is optional and must be offered by insurers.
How an Uninsured Motorist Claim Works
If the driver who caused the crash has no insurance, an injured person may make a claim through their own uninsured motorist coverage. Although the claim involves your own insurance company, you still need to show that the other driver was responsible for the accident and document the injuries and losses you are claiming. Because your insurer is evaluating what it owes under the policy, it may still question fault, the extent of your injuries, or the value of your claim.
UM coverage can apply to medical expenses, lost income, pain and suffering, and other damages resulting from the crash, up to the available policy limits. It may also apply in certain hit-and-run accidents when the at-fault driver cannot be identified. These claims can involve additional requirements, which makes documenting the crash and reporting it promptly especially important.
How an Underinsured Motorist Claim Works
Underinsured motorist coverage comes into play when the at-fault driver has insurance, but the available liability coverage is not enough to cover the injured person’s damages. In South Carolina, a UIM claim can provide an additional source of compensation up to the amount of coverage available under the injured person’s policy.
For example, suppose your injuries and other losses are valued at $150,000, but the at-fault driver has only $25,000 in bodily injury coverage. That $25,000 policy does not reduce the value of your losses to $25,000. If you have applicable UIM coverage, you may be able to pursue additional compensation through that coverage.
A UIM claim still requires you to establish the at-fault driver’s liability and the extent of your damages. There are also specific procedures that can affect how the liability claim and UIM claim are handled, particularly when the at-fault driver’s insurer offers its policy limits.
Tip
The coverage listed for the vehicle involved in the accident may not always be the only UM or UIM coverage worth reviewing.
What to Know Before Settling With the At-Fault Driver’s Insurance Company
If the at-fault driver’s insurance company offers its full policy limit, it can sound like the claim has reached the maximum available amount. That is not always the case. If you have underinsured motorist coverage, your own policy may provide additional coverage when the other driver’s insurance is not enough to cover your losses.
Before accepting a settlement, it is important to find out whether UIM coverage applies and what steps are required to pursue it. South Carolina has specific rules for handling UIM claims, particularly when a lawsuit is involved. The state’s underinsured motorist laws also give the UIM insurer certain rights to participate in the case.
The important point is that the at-fault driver’s policy limit and the total insurance available for your claim may be two different numbers. A settlement with one insurance company should not be treated as the end of the process until the other coverage that may apply has been identified.
Can UM/UIM Coverage Be Stacked in South Carolina?
South Carolina allows uninsured and underinsured motorist coverage to be stacked in some situations. Stacking means combining coverage available through more than one insured vehicle, which can increase the total insurance available after a serious accident.
Whether you can stack coverage depends on the circumstances. Under South Carolina law, a person who qualifies as what courts call a Class I insured may be able to stack UM or UIM coverage from additional insured vehicles. This generally includes a named insured, spouse, or resident relative who has an insured vehicle involved in the accident.
If none of the insured person’s vehicles is involved in the accident, the rules are more restrictive. In that situation, South Carolina law generally limits the person to coverage available on one insured vehicle rather than allowing coverage from several vehicles to be combined.
For someone seriously injured in a crash, the practical point is that the UM or UIM limit shown for one vehicle may not always tell the whole story. Reviewing the vehicles and policies involved, as well as who qualifies as an insured under them, can determine whether additional coverage is available.
How a Lawyer Identifies Available UM/UIM Coverage
Finding the insurance available after a serious crash is not always as simple as looking at the policy covering the vehicle involved. Depending on the circumstances, there may be coverage through the injured person’s own policy, another vehicle in the household, or another policy that applies to the accident.
A car accident lawyer can review the insurance policies involved, confirm the at-fault driver’s liability limits, determine whether UM or UIM coverage applies, and look at whether additional coverage can be stacked. This becomes especially important when the injuries are serious, and the at-fault driver’s insurance is clearly not enough to cover the losses.
The goal is to understand the full amount of insurance potentially available before the claim is resolved. Otherwise, an injured person may accept the limits of one policy without realizing another source of coverage should also have been considered.
Understanding Your Coverage After a South Carolina Car Accident
The at-fault driver’s insurance limits are only one part of determining what coverage may be available after a crash. When that driver has no insurance or too little to cover the claim, UM or UIM coverage may provide another source of compensation. In some cases, additional coverage may also be available through stacking or other applicable policies.
Because these sources of coverage are not always obvious, it is important to identify the policies that apply before a claim is resolved. That means looking beyond the at-fault driver’s insurance and determining whether your own coverage or other policies may also play a role.
If you were injured in a South Carolina crash, Morris Law can review the insurance coverage involved, explain how UM or UIM may apply, and help you understand the options available for pursuing compensation.