Utah Uninsured and Underinsured Motorist Coverage: What Car Accident Victims Need to Know

Utah UM/UIM Coverage: Your Safety Net When the At-Fault Driver Can't Pay

Utah has one of the highest uninsured driver rates in the Mountain West. When you are injured by an uninsured driver — or a driver whose liability limits fall far short of your damages — your uninsured and underinsured motorist (UM/UIM) coverage is your primary recovery mechanism. Understanding how Utah UM/UIM coverage works is essential for any car accident victim.

Utah's UM/UIM Coverage Requirement

Utah Code § 31A-22-305 requires all automobile liability policies to include UM coverage in amounts equal to the policy's bodily injury liability limits, unless the named insured explicitly rejects UM coverage in writing. This means:

• If you carry $100,000/$300,000 liability limits, your default UM coverage is also $100,000/$300,000
• Most Utah drivers have UM coverage because most never sign a written rejection
• UIM (underinsured motorist) coverage is typically offered alongside UM and should be purchased at your highest affordable limit

The minimum liability limits in Utah are $25,000 per person / $65,000 per accident. Many at-fault drivers carry only the minimum limits, which are woefully inadequate for serious-injury cases. Carrying UM/UIM at $100,000 or higher is strongly advisable.

When UM Coverage Applies

Your UM coverage pays when you are injured by a driver who:

• Carries no liability insurance at all
• Flees the scene and cannot be identified (hit-and-run)—provided there was actual physical contact between the vehicles, or you can establish that an unidentified vehicle caused the crash through corroborating evidence
• Have insurance, but their insurer becomes insolvent

Utah UM coverage pays your damages as if the uninsured driver had liability limits equal to your UM limits. You make the claim against your own insurer under your UM coverage.

When UIM Coverage Applies

UIM coverage pays when the at-fault driver has liability insurance, but their limits are insufficient to cover your full damages. Example:

Under Utah's offset rule (§ 31A-22-305.3), your UIM benefit = your UIM limit minus what you receive from the at-fault driver's insurer. Always exhaust the at-fault driver's policy before claiming UIM.

The Consent-to-Settle Requirement

Many Utah UIM policies contain a "consent to settle" provision. Before accepting a settlement from the at-fault driver's insurer, review your policy for a consent requirement. If your policy requires you to notify your UIM insurer and obtain consent before settling, failure to follow this procedure can forfeit your UIM claim.

The practical procedure: before accepting any settlement from the at-fault driver's insurer, send a written notice to your own UIM insurer advising them of the settlement amount. Give them the opportunity to object or substitute their payment (effectively "buying out" the claim from the at-fault insurer so your UIM claim is preserved). A Utah car accident attorney handles this coordination as a standard part of the case.

When Your Own Insurer Disputes a UM/UIM Claim

Your own insurer is financially motivated to minimize UM/UIM payouts, just as the at-fault driver's insurer is. Common disputes in Utah UM/UIM claims include the following:

• Whether the other driver was truly at fault (the insurer disputes the UM trigger)
• Whether there was actual physical contact in a hit-and-run claim
• The nature and extent of your injuries
• Whether you provided timely notice of the claim
• The offset calculation methodology

Utah's Unfair Claims Settlement Practices Act (§ 31A-26-303) imposes duties on all Utah insurers to promptly investigate and fairly settle legitimate claims. Unreasonable denial or delay can give rise to a bad faith claim—with remedies including attorney fees and damages beyond the policy limits.

Many Utah UIM policies require binding arbitration for disputed claims, which is typically faster than litigation but requires knowing the procedural rules. A Utah car accident attorney handles UM/UIM disputes through arbitration or litigation as appropriate.

BAM Injury Law: Utah Car Accident and UM/UIM Claims

BAM Injury Law handles Utah car accident cases involving both third-party claims against the at-fault driver's insurer and first-party UM/UIM claims against your own insurer. Kigan Martineau (Utah Bar #15299, Avvo 9.3 Superb, Super Lawyers Rising Star) represents injury victims on a contingency basis throughout Utah.

Free consultation: (801) 839-5652. No fee unless we recover.

Related: Utah Car Accident Attorney Guide | Utah Car Accident Attorney FAQ | Utah Car Accident Claim Timeline Guide

See also: BAM Injury Law Case Results: Utah and Idaho Personal Injury Settlements

See also: Utah Car Accident Attorney: BAM Injury Law's $1 Million Result and How Utah Claims Work