Justice for You

What Can I Do If UIM Insurance Won’t Pay?

March 12, 2024 | Legal Claims

When you’re involved in a collision caused by an uninsured or underinsured motorist, the overwhelming financial strain falls on you. If purchased by you, uninsured/underinsured motorist (UIM) insurance is designed to protect you in such situations.  However, your  insurance company may deny your UIM claim. With an experienced lawyer, you can successfully navigate the difficulties that occur when your UIM coverage is denied by your insurance company .

What Are The Criteria for Filing an Uninsured Motorist Claim?

Unlike other types of motor vehicle insurance, UIM motorist coverage is designed to help those who are involved in accidents caused by uninsured or underinsured drivers.

Generally, you can file a UIM claim if:

  • The Other Driver Is Uninsured or Underinsured: The responsible driver either doesn’t have insurance or their coverage is insufficient to cover your damages.
  • You Have UIM Coverage: You must have UIM coverage as part of your auto insurance policy. UIM coverage is mandatory in Colorado unless it is waived by you in writing.
  • You were involved in a “hit and run” collision: Although hit and run coverage is not available in some states, Colorado requires UIM motorist coverage to provide coveragein these scenarios.

Why Do Insurance Companies Deny UIM Motorist Claims?

Insurance claim denials can be frustrating and confusing. There are a variety of reasons why an insurance company may initially deny an uninsured or underinsured motorist claim, including the rationales listed below.

Reporting Delays

Insurance companies may deny claims if there are delays in reporting the accident. Promptly informing your insurance provider about the accident is crucial to the claims process.

Lapse in Coverage

If your insurance policy lapsed or you failed to make payments, your insurer will deny your claim. It is essential to keep your insurance payments current to maintain coverage.

Disputes over Policy Inclusions

Sometimes, there may be disputes over whether the circumstances of the accident fall within the coverage provided by your policy. These disputes can lead to claim denials. This often occurs when people attempt to claim UIM or medical payments coverage, but have waived these coverages to save money on their premiums.

Claim Exceeds Policy Limits

Your insurance policy has coverage limits. If the damages from the accident exceed these limits, your insurer will deny any claim above the policy limits, which may result in only a partial payment for your harms and losses. .

Lack of Proof

Insufficient evidence or documentation to support your claim can lead to denial. It’s essential to gather as much information, such as photographs, the names of witnesses and their telephone numbers,  at the scene of the accident and during the claims process.

What Can I Do If My Insurance Company Won’t Pay?

Facing a denied UIM claim can be disheartening, but there are steps you can take to address the situation.

First, you should  review your insurance policy to understand your coverage and ensure the denial was justified. You should not just take the insurance providers opinion on the subject. Often misunderstandings or errors occur. An experienced motor vehicle attorney can review your policy provision and the state laws to determine if the policy terms are ambiguous or have been ruled to be invalid under the public policy of the state.

Can I Appeal An Insurance Claim Denial?

If you feel like the denial was made in error, many insurance companies have an appeals process for denied claims. Follow the instructions provided by your insurer to appeal the decision.

If  you’re unable to resolve the issue through the appeals process or believe your insurer is acting in bad faith, consider consulting with a qualified attorney who specializes in personal injury claims or insurance law.  Killian, Davis, Richter & Fredenburg, PC has brought numerous “bad faith” lawsuits against insurance companies when they have denied coverage .

Should I Hire an Attorney When UIM Insurance Won’t Pay?

Unfortunately, dealing with an uninsured motorist claim denial is not easy. If you believe your insurance company is acting in bad faith, you should consult with an experienced personal injury lawyer.

Dealing with a denied UIM claim can be stressful, but understanding the claims process and hiring an  attorney experienced in UM/UIM claims can help ensure you receive the compensation you deserve. The Killian Law team won’t hesitate to take action when your UIM insurance refuses to pay. Contact us today for a free case consultation.