Police report arrives. At-fault driver: “No insurance on file.”
You call their listed insurer. “Policy lapsed 3 months ago.” Uninsured.
Now you file a claim with YOUR insurer – the company you’ve paid premiums to for 8 years. They send a denial letter arguing you were partially at fault.
Welcome to uninsured motorist (UM) claims. You thought your insurance company was on your side. They’re not. When UM coverage pays, the money comes from their pocket. They investigate, challenge, and lowball just like the at-fault driver’s insurer would – except they already have your policy information and medical authorizations.
This guide explains what UM/UIM coverage is, when it kicks in, why your own insurer treats you as an adversary, the UM claims process step-by-step, and how arbitration clauses in your policy limit your options if settlement fails.
What UM/UIM Coverage Is (And Why You Probably Have It)
Uninsured Motorist (UM) coverage: Pays when at-fault driver has zero insurance.
Underinsured Motorist (UIM) coverage: Pays when at-fault driver’s insurance is insufficient for your injuries.
Example: At-fault driver has $25,000 policy. Your damages are $150,000. Their policy pays maximum $25,000. Your UIM coverage pays the additional $125,000 (up to your UIM limits).
Georgia law (O.C.G.A. § 33-7-11):
Insurers must OFFER UM/UIM coverage to all policyholders. You can reject it, but rejection must be in writing.
Most Georgia riders have UM/UIM coverage because:
- It’s offered by default
- Many don’t realize they can reject it
- Dealership finance companies often require it
- It’s relatively inexpensive (adds 10-20% to premium)
Check your policy declarations page. Look for:
- “Uninsured Motorist Bodily Injury”
- “Underinsured Motorist Bodily Injury”
- Limits listed (e.g., $100,000/$300,000)
If these appear, you have coverage.
Default limits:
Georgia law requires insurers offer UM/UIM limits equal to your liability limits unless you request lower limits in writing.
Example: You carry $100,000/$300,000 liability coverage. Your UM/UIM coverage should also be $100,000/$300,000 unless you specifically selected lower.
Check your policy. If UM limits are lower than liability limits, you may have unknowingly accepted reduced coverage when you signed paperwork.
Coverage source:
UM/UIM coverage comes from YOUR policy. You pay the premium. When you make a UM claim, you’re claiming against your own insurance company.
This creates the fundamental conflict: they’re paying out of their pocket, not subrogating against another carrier.
When UM Coverage Kicks In
Scenario 1 – No insurance at all:
At-fault driver has no insurance policy. Policy expired, cancelled, or never existed.
UM coverage applies.
Scenario 2 – Fake insurance:
At-fault driver provided fake insurance card or policy doesn’t exist when you try to file claim.
UM coverage applies.
Scenario 3 – Underinsured:
At-fault driver has insurance but limits too low.
Example:
- Your damages: $200,000
- Their policy: $25,000 (Georgia minimum)
- Their insurer pays: $25,000 maximum
- Your UIM coverage: Pays remaining $175,000 (up to your UIM limits)
Scenario 4 – Hit-and-run (covered in Post #24):
Driver flees, never identified.
UM coverage may apply (Georgia allows UM claims for hit-and-run, but requirements are strict).
What UM does NOT cover:
Your own medical payments coverage vs UM:
Medical payments coverage (MedPay) pays your medical bills regardless of fault, up to policy limits (typically $1,000-10,000). Small coverage, pays quickly, no fault determination needed.
UM coverage pays all damages (medical, wage loss, pain & suffering) but requires proving the other driver was at fault. Larger coverage, pays slowly, fault must be established.
Collision coverage vs UM:
Collision coverage pays for motorcycle damage regardless of fault (subject to deductible).
UM bodily injury coverage pays for injury damages only, not property damage. Some policies include UM property damage coverage (separate), but most don’t.
Your Own Insurer Becomes the Opponent
This is the UM paradox: you’ve paid premiums for protection, but when you need it, your insurer treats you like an adversary.
Why this happens:
Economic incentive: When you file third-party claim against another driver’s insurer, that insurer pays. Your insurer isn’t involved.
When you file UM claim, YOUR insurer pays directly. Every dollar they pay comes from their reserves, not another company’s pocket.
They investigate your claim with the same scrutiny (actually, more scrutiny) they’d give a third-party claim against them.
What this looks like in practice:
Fault investigation:
Your insurer examines whether YOU were at fault. Under Georgia’s comparative fault rule (Post #13), if you’re 50%+ at fault, they pay nothing even though you have UM coverage.
They’ll argue:
- You were speeding
- You weren’t paying attention
- You could have avoided the crash
- Comparative fault reduces or eliminates their payment
Injury investigation:
Same tactics third-party insurers use:
- Request all medical records
- Look for pre-existing conditions
- Analyze treatment gaps
- Send you to independent medical exam (IME)
- Challenge causation (“injury existed before crash”)
- Question treatment necessity (“PT wasn’t medically necessary”)
Lowball offers:
First UM settlement offer typically 10-40% of claim value. Same as third-party insurers.
Example: Your damages total $200,000. First UM offer: $50,000. You counter: $180,000. They increase to $80,000. Multiple rounds of negotiation, same pattern as fighting other driver’s insurer.
Recorded statements:
They’ll request recorded statement about the crash. Everything you said in initial claim report is now scrutinized for inconsistencies.
They use your own words against you: “You said you didn’t see the car until last second. That suggests you weren’t paying attention. Comparative fault applies.”
Delayed payments:
Even after settling, UM claims often take longer to pay than third-party settlements. Your insurer isn’t motivated to pay quickly – it’s their money leaving.
The conflict of interest:
Your insurer owes you duty of good faith and fair dealing under your policy. But they also want to minimize payout.
This creates inherent conflict: they’re supposed to protect you (policyholder) while also protecting their bottom line.
Courts recognize this conflict. Insurers that act in bad faith (unreasonably denying valid UM claims, refusing to investigate, lowballing without justification) can face bad faith damages on top of policy limits.
But proving bad faith is difficult. Most UM disputes settle within policy limits after extended negotiation.
The UM Claims Process Step-by-Step
Step 1 – Confirm the at-fault driver is uninsured:
Police report: Most officers check insurance status at scene. Report will note “No insurance” or “Invalid insurance.”
Georgia Electronic Insurance Compliance System (GEICS): Georgia’s database of insured vehicles. Police can check in real-time. You can verify through your attorney.
Written confirmation: If at-fault driver listed an insurer, call that insurer. Request written confirmation that policy was expired/cancelled at crash date. Get this in writing – email or letter stating “No coverage in effect on [crash date].”
Don’t rely on at-fault driver’s word: They may claim “I have insurance” to avoid citation. Verify independently.
Step 2 – Notify YOUR insurer:
Timing: Your policy requires reporting “within reasonable time.” Some policies specify timeframes (30 days, 60 days). Don’t delay.
How to report:
- Call claims department
- State: “I’m reporting a claim under my uninsured motorist coverage”
- Provide: crash date, location, at-fault driver information, police report number
Get claim number: Your insurer opens UM claim file, assigns adjuster, gives you claim number.
Initial statement: Adjuster will request statement. Be careful – this is adversarial from the start. Consider consulting attorney before giving recorded statement.
Step 3 – YOUR insurer investigates:
Liability investigation: They verify other driver was at fault. They examine police report, witness statements, crash reconstruction (if serious crash).
They look for YOUR fault: Were you speeding? Violating traffic law? Did you have opportunity to avoid crash?
Injury investigation: They request medical records, bill verification, treatment records. Same process as third-party claim.
Medical authorizations: You’ll sign HIPAA release allowing insurer to obtain all medical records. They’re looking for pre-existing conditions, treatment gaps, causation questions.
Independent medical exam (IME): If claim is significant, they’ll request IME. Their doctor examines you, reviews records, provides opinion (almost always favorable to insurer – “injuries minor,” “treatment excessive,” “pre-existing condition,” “maximum recovery already achieved”).
Valuation: They calculate damages using same methods as third-party insurers: economic damages total, then apply multiplier (always lower than you’d argue).
Step 4 – Settlement offer:
First offer will be low. Expect 10-40% of your calculated value.
Negotiation follows. Counter-offers, back and forth, same pattern as third-party negotiation.
Step 5 – If settlement fails:
You sue YOUR OWN INSURER.
Bizarre but standard. You file lawsuit against your insurance company to enforce UM coverage.
Arbitration clause: Most UM policies include binding arbitration clause. If claim can’t be settled, dispute goes to arbitration instead of trial.
How arbitration works:
- Both sides select arbitrator from agreed list (often insurance industry arbitrators, not neutral)
- Hearing held (similar to trial but less formal)
- Arbitrator decides fault, damages, award
- Decision is binding (very limited appeal rights)
Arbitration vs trial differences:
| Factor | Trial | Arbitration |
|---|---|---|
| Decision-maker | Jury | Single arbitrator |
| Discovery | Full | Limited |
| Appeal | Yes | Very limited |
| Cost | Higher | Lower |
| Time | 12-24 months | 6-12 months |
| Formality | High | Lower |
Arbitration generally favors insurers:
- Arbitrators come from insurance industry pool
- Limited discovery means less evidence developed
- No jury sympathy (arbitrators more cold, analytical)
- Binding decision with no appeal if arbitrator makes error
But arbitration also has benefits:
- Faster resolution
- Lower litigation costs
- More informal (less intimidating for injured rider)
Step 6 – Payment:
Once settled or arbitrated, insurer pays within timeframe specified by policy (typically 30-60 days from agreement).
Payment comes with release: you release all claims related to crash (against insurer under UM coverage, against at-fault driver personally, against any other parties).
Read release carefully. Make sure it covers only this crash, not future claims.
Arbitration Clauses and Why They Matter
Most Georgia motorcycle insurance policies include UM arbitration clauses. You agreed to this when you bought the policy (it was in the fine print).
Sample clause language:
“If we and an insured disagree whether the insured is legally entitled to recover damages under this coverage or as to the amount of such damages, either party may make a written demand for arbitration. In this event, each party will select an arbitrator. The two arbitrators will select a third arbitrator. The decision agreed to by two of the three arbitrators will be binding.”
What this means:
If you and your insurer can’t agree on UM claim value, either side can force arbitration. You can’t go to trial unless policy allows it (most don’t).
Arbitrator selection:
Standard process:
- You select one arbitrator
- Insurer selects one arbitrator
- Those two arbitrators select third arbitrator
- Majority (2 of 3) decides case
Problem: Insurance companies repeatedly use same arbitrators. Those arbitrators know: rule too favorably for claimants, insurer won’t select them again. Subtle bias develops.
Your arbitrator selection: Choose attorney with UM arbitration experience who has list of claimant-friendly arbitrators. Don’t pick blindly from list insurer provides.
Arbitration costs:
Each party pays own attorney fees. Arbitrators charge fees (typically $300-500/hour each, split between parties).
Example arbitration costs:
- Your attorney: $5,000-15,000 (depends on complexity)
- Arbitrator fees (your share): $2,000-5,000
- Expert witnesses: $3,000-10,000
- Total: $10,000-30,000
These costs come from your pocket unless you win and arbitrator awards them (rare).
Binding nature:
Arbitration award is binding. Very limited grounds for appeal:
- Arbitrator fraud
- Arbitrator exceeded authority
- Arbitrator misconduct
Can’t appeal because you think arbitrator made wrong decision or valued case too low. Binding means binding.
Can you avoid arbitration?
No, if policy requires it. You agreed when you bought policy. Can’t later say “I want jury trial instead.”
Some policies allow trial if parties agree. But insurer won’t agree – arbitration favors them.
When Attorney Helps (Which Is Always in UM Cases)
Third-party claims: You might negotiate yourself if claim is small, liability clear, injuries minor.
UM claims: Attorney recommended for ALL significant UM claims because:
Your insurer has advantages:
- They already have your policy
- They already have your medical authorizations
- They know your coverage limits (you might not)
- They know your policy language (you don’t)
- They have claims adjusters handling hundreds of claims/year (you’ve never done this)
Attorney levels field:
- Knows UM claim procedures
- Knows arbitration process
- Has arbitrator lists (claimant-friendly arbitrators)
- Understands policy language
- Pushes back on lowball offers with evidence
- Prepares for arbitration if needed
Insurer behavior changes:
Insurers are less aggressive with lowball tactics when claimant has attorney. They know attorney will push back, potentially file bad faith claim if insurer acts unreasonably.
Statistically, represented claimants recover 2-3x more than unrepresented claimants in UM cases, even after attorney fees.
Attorney fees:
Contingency: typically 33-40% of recovery. You pay nothing upfront. Attorney paid from settlement/arbitration award.
Example:
- Unrepresented settlement: $60,000 (40% of claim value)
- You keep: $60,000
- Represented settlement: $120,000 (80% of claim value)
- Attorney fee (33%): $40,000
- You keep: $80,000
You net $20,000 more even after paying attorney fees.
UM coverage framework: YOUR insurer pays when at-fault driver can’t pay. But YOUR insurer investigates like adversary – fault, causation, damages all contested. Process: (1) Confirm driver uninsured (police report, GEICS verification, written confirmation from listed insurer). (2) Report to YOUR insurer promptly per policy terms. (3) Expect adversarial handling – they examine your fault (comparative fault >50% = zero recovery), challenge injuries (pre-existing conditions, treatment gaps, IME), lowball first offer (10-40% of value). (4) Build evidence file as if third-party claim – scene photos, medical records, witness statements, injury documentation. (5) Attorney helps – insurer less aggressive with representation, attorney knows UM procedures/arbitration, has arbitrator contacts. (6) If settlement fails, binding arbitration (not trial) under most policies. Don’t assume your insurer is “on your side” in UM claim. They’re paying the claim, so they’re the opponent.
Disclaimer: This article provides general information about Georgia motorcycle accident law and is not legal advice. Every case is different. Consult a qualified Georgia motorcycle accident attorney to discuss your specific situation. Nothing in this article creates an attorney-client relationship.