When you’re hit by a driver who has no insurance—or not enough of it—the aftermath can be devastating. Suddenly, you’re left facing medical bills, vehicle repairs, and lost wages, all while dealing with the stress of an accident that wasn’t your fault. Unfortunately, many Vermont drivers don’t realize until it’s too late that uninsured/underinsured motorist (UM/UIM) coverage can be their saving grace. Understanding how these claims work and what steps to take can make the difference between being left empty-handed and getting the compensation you deserve.
Understanding Uninsured and Underinsured Motorist Coverage in Vermont
Uninsured/Underinsured Motorist (UM/UIM) coverage protects you when the at-fault driver either doesn’t carry liability insurance or doesn’t have enough coverage to pay for your losses. In Vermont, this coverage is not optional—it’s required by law under 23 V.S.A. § 941, which mandates that every auto insurance policy includes UM and UIM coverage in amounts equal to the policy’s liability limits.
In simple terms, your own insurance company steps in to cover what the at-fault driver cannot. This ensures that even if the negligent party is uninsured or underinsured, you’re not left struggling financially.
How UM/UIM Coverage Works in Vermont Car Accidents
When a car crash occurs in Vermont, the first source of compensation typically comes from the at-fault driver’s liability insurance. However, if that driver is uninsured or lacks sufficient coverage, your uninsured/underinsured motorist (UM/UIM) policy steps in to cover the gap. Under Vermont law, all drivers must carry at least $50,000 in UM/UIM coverage per person and $100,000 per accident, though many choose higher limits for stronger protection. In practice, this means you would first file a claim with the at-fault driver’s insurer, and if their coverage is inadequate, you would then file a UM/UIM claim with your own insurance company. Your insurer would review your claim and provide compensation up to your policy limits. While this may sound straightforward, it can quickly become complicated—especially since you are now negotiating with your own insurer, which may try to minimize payouts. That’s why having an experienced Vermont car accident attorney on your side can make a significant difference in ensuring you receive the full compensation you deserve.
Common Scenarios Requiring UM/UIM Claims in Vermont
While many drivers believe uninsured motorists are rare, the reality is that Vermont consistently ranks among states with a significant percentage of uninsured drivers. Common situations where UM/UIM coverage applies include:
- A hit-and-run driver leaves the scene, and their identity is never discovered.
- The at-fault driver carries only Vermont’s minimum liability coverage, which doesn’t fully compensate your injuries.
- You’re struck as a pedestrian or cyclist by an uninsured driver.
- You’re injured as a passenger in someone else’s car, and the driver at fault lacks coverage.
In all of these cases, your own UM/UIM policy can step in to pay medical costs, lost wages, and other damages—often making it the most critical part of your insurance plan.
Steps to Take After a Vermont Car Accident Involving an Uninsured Driver
After any accident, emotions run high, and it’s easy to make mistakes that can jeopardize your claim. Following a clear process helps protect both your health and your right to compensation.
Here’s what to do if the at-fault driver has no or insufficient insurance:
- Call 911 and get medical help. Always report the accident and request a police report—it’s vital evidence for your claim.
- Exchange information with the other driver, even if they admit they’re uninsured.
- Gather evidence—photos, witness statements, and contact details.
- Notify your insurance company about the accident as soon as possible.
- Contact a Vermont car accident lawyer to guide you through the UM/UIM claim process.
Insurance companies often delay or deny UM/UIM claims under the guise of “investigating liability.” Having an attorney ensures your rights remain protected at every stage.
How to File an Uninsured/Underinsured Motorist Claim in Vermont
Filing a UM/UIM claim isn’t always straightforward. While it’s your own insurer handling the claim, their goal is still to minimize what they pay. The process generally involves:
Notification. Inform your insurer promptly that you’re filing a UM/UIM claim. Late notice can be grounds for denial.
Investigation. The insurer reviews police reports, medical records, and other documentation to verify your losses.
Evaluation. They determine how much coverage applies and what compensation you’re entitled to.
Settlement Negotiation. Your attorney negotiates to ensure the settlement reflects the true value of your claim.
Arbitration or Litigation (if necessary). If your insurer refuses to pay fairly, Vermont law allows you to pursue arbitration or a lawsuit.
This process mirrors a typical liability claim, but it can become adversarial since your insurer is now the opposing party.
What Damages Can You Recover Through UM/UIM Coverage in Vermont?
Your uninsured/underinsured motorist policy may cover a wide range of losses depending on your injuries and policy terms. Common recoverable damages include:
- Medical expenses (past, current, and future)
- Lost income and reduced earning capacity
- Pain and suffering
- Emotional distress
- Property damage (vehicle repair or replacement)
Keep in mind that Vermont’s comparative negligence rule—outlined under 12 V.S.A. § 1036—may still apply. This means your recovery could be reduced by your percentage of fault in the accident. For instance, if you’re 10% at fault, your compensation may be reduced by that amount.
Challenges in Vermont UM/UIM Claims
Although UM/UIM coverage sounds straightforward, claimants frequently face unexpected hurdles. Insurers may:
- Argue that your injuries preexisted the crash.
- Claim that you settled prematurely with the at-fault driver, voiding UIM coverage.
- Dispute the total value of your damages.
- Delay communication to pressure you into a lower settlement.
Each of these tactics can significantly reduce your payout if you don’t have experienced legal representation.
When a Vermont UM/UIM Claim Makes All the Difference
Consider this example:
A 34-year-old Burlington resident is hit by a driver who runs a red light. The at-fault driver carries only the state minimum liability insurance, which covers $50,000 per person. However, the victim’s medical expenses exceed $150,000, and they are unable to work for several months. Because they wisely carried $250,000 in underinsured motorist coverage, they were able to file a UIM claim against their own insurer and recover the remaining $100,000 after negotiations.
This case underscores why increasing your UM/UIM limits beyond the state minimum can offer invaluable protection when tragedy strikes.
Why Legal Guidance Matters in Vermont UM/UIM Claims
Even though you’re dealing with your own insurer, UM/UIM claims are among the most complex car accident cases. Insurance adjusters often use the same strategies they employ against claimants pursuing traditional third-party claims. A Vermont car accident attorney can:
- Collect and present evidence proving liability and damages.
- Ensure all deadlines and notice requirements are met.
- Negotiate directly with the insurer to secure fair compensation.
- Represent you in arbitration or court if your insurer acts in bad faith.
In practice, having a lawyer on your side levels the playing field and often results in significantly higher settlements.
Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away
If you’ve been injured in a Vermont car accident caused by an uninsured or underinsured driver, you shouldn’t have to face financial uncertainty alone. Brandon J. Broderick, Attorney at Law, understands how frustrating it is when the responsible party can’t cover your losses—and your own insurer adds to the stress. Our Vermont car accident lawyers can handle every aspect of your uninsured motorist or underinsured motorist claim, from investigation to negotiation.
Whether you’re recovering from a hit-and-run or struggling with mounting medical bills, we fight to ensure you receive the compensation you deserve under Vermont law.