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Underinsured vs. Uninsured Driver: What's the Difference?

Posted by Christopher “Chris” Schwartz | Jan 13, 2025 | 0 Comments

Underinsured vs. Uninsured Driver: What's the Difference?

In most car accidents, both drivers trade insurance information. When the other driver is at fault, their insurance is supposed to cover the costs of your car repairs and medical expenses. But what about underinsured and uninsured drivers?

It's not uncommon for the at-fault driver to have insufficient insurance. This means their policy can't pay enough to cover your financial lossses from the accident. Not only is this situation frustrating, it can also be confusing. What is the difference between an uninsured vs underinsured driver, and what can you do to get fair compensation if the driver who caused your car accident doesn't have the right insurance? 

At Schwartz Law Firm, we can help.

The Difference Between Underinsured and Uninsured Drivers

  • Underinsured driver: The driver has car insurance, but the policy is not big enough to cover the financial losses from an accident.
  • Uninsured driver: The driver doesn't have car insurance and no claim can be made.

Underinsured and uninsured drivers are often grouped together, but there is an mportant difference. 

Underinsured Driver

An underinsured driver has car insurance. Their policy can pay a claim for a limited amount of money, but that amount is not enough for the full extent of property and medical damage caused by the accident. This means that those harmed by an underinsured driver can get some compensation, but not the full amount from an insurance claim.

Uninsured Driver

An uninsured driver is doesn't have car insurance. They are officially breaking the law by driving without insurance, but this also means there is no insurance policy available to fulfill a claim if the uninsured driver causes a car accident.

Uninsured and Underinsured (UM/UIM) Coverage

Car insurance policies offer an optional uninsured/underinsured motorist (UM/UIM) coverage option. This allows you to make a claim with your own insurance provider if you are in an accident caused by a driver with insufficient insurance. UM/UIM coverage can pay for car repairs and medical expenses in the event of an accident with a driver whose policy cannot compensate for your financial losses from the accident.

Many Louisiana drivers carry UM/UIM insurance in case of this eventuality. However, the coverage is optional and policies built with default settings may not include UM/UIM coverage. It can also sometimes be difficult to complete a claim with modern insurance policies.

What to Do If You Are In an Uninsured/Underinsured Motorist Accident

If you are in an accident caused by someone without insurance, or with a too-small policy, Schwartz Law Firm can help. While the usual solution is to file an insurance claim against the at-fault driver, insurance is not your only option to receive fair compensation after a car accident.

We can also help you sue the driver directly in civil court for the cost of your losses. In cases of property damage and personal injury, civil court helps you go beyond the bounds of insurance policies to seek the compensation you deserve, whether or not the at-fault driver's insurance can cover your losses. Schwartz Law Firm will help you build a case and pursue fair compensation in the event of an accident with an uninsured or underinsured driver.

Uninsured/Underinsured Motorist Accident? We Can Help

Fair compensation after an accident with an uninsured or underinsured driver can be challenging. Whether you are trying to get approval through your own UM/UIM insurance coverage or need to pursue the case in civil court to ensure all your expenses are compensated, Schwartz Law Firm is here to help. Contact us for a personalized consultation to explore the details of your case and the best route to ensure you are compensated for your losses in the accident.

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Schwartz Law Firm

Schwartz Law Firm LLC attorneys bring over 25 years of combined experience securing personal injury recoveries and workers’ compensation successes in New Orleans and southeast Louisiana.

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