Being injured in a car accident is stressful enough. Discovering that the at-fault driver has no insurance — or not enough insurance — can make the situation even more overwhelming.

If you were hurt in an accident in or around Memphis or Tupelo, you may still have options through your own insurance policy. These claims are known as uninsured motorist (UM) and underinsured motorist (UIM) claims.

This guide explains how UM and UIM coverage works in Tennessee and Mississippi, what steps to take after a crash, and how these claims are valued.

What Is Uninsured Motorist (UM) Coverage?

Uninsured motorist (UM) coverage applies when:

• The at-fault driver has no insurance
• The driver is involved in a hit-and-run
• The insurer denies coverage

UM coverage allows you to recover compensation through your own auto insurance policy.

What Is Underinsured Motorist (UIM) Coverage?

Underinsured motorist (UIM) coverage applies when:

• The at-fault driver has insurance
• But their policy limits are too low to fully cover your damages

For example:

If your damages total $150,000 and:

• The at-fault driver only has $25,000 in coverage

Your UIM policy may cover the remaining amount — up to your policy limits.

Is UM/UIM Coverage Required in Tennessee?

Tennessee requires insurance companies to offer UM coverage when a policy is issued.

Unless you reject it in writing, UM coverage is typically included in your policy.

Key points in Tennessee:

• UM coverage often mirrors your liability limits
• It may apply to hit-and-run accidents
• You may be required to formally serve the uninsured motorist

Because Tennessee follows modified comparative fault rules, your recovery may be reduced if you are partially at fault.

Is UM/UIM Coverage Required in Mississippi?

Mississippi also requires insurers to offer UM coverage.

If you do not reject it in writing, it is generally included in your policy.

Important Mississippi distinctions:

• Pure comparative fault applies
• You can recover damages even if mostly at fault
• UM coverage applies in many hit-and-run scenarios

Policy language can vary, so reviewing your specific coverage is critical.

What Damages Are Covered in UM/UIM Claims?

UM and UIM coverage can typically compensate for:

• Medical bills
• Future medical treatment
• Lost wages
• Reduced earning capacity
• Pain and suffering
• Permanent disability
• Wrongful death damages

In many cases, UM/UIM claims function similarly to claims against an at-fault driver — but legally, you are pursuing compensation through your own insurer.

Why UM/UIM Claims Are Often Disputed

Many people assume their own insurance company will “be on their side.”

In reality, once a UM or UIM claim is filed, the insurer’s financial interests shift.

Common insurance tactics include:

• Disputing fault
• Minimizing injury severity
• Arguing treatment was excessive
• Claiming pre-existing conditions
• Challenging medical necessity
• Delaying payment

UM/UIM claims often require the same level of negotiation as third-party injury claims.

How Comparative Fault Impacts UM/UIM Recovery

Because both Tennessee and Mississippi follow comparative fault systems, your recovery may be reduced based on your fault percentage.

In Tennessee:

• You must be less than 50% at fault to recover.

In Mississippi:

• You may recover damages even if mostly at fault, though your award is reduced proportionally.

Fault disputes can significantly impact UM/UIM claim value.

What to Do After an Accident With an Uninsured Driver

If you are involved in an accident where the other driver lacks insurance:

1. Call law enforcement and obtain a police report
2. Seek immediate medical care
3. Notify your insurance company promptly
4. Avoid giving recorded statements without legal guidance
5. Preserve photographs and documentation
6. Consult a personal injury attorney early

Early missteps can weaken UM/UIM claims.

Policy Limits and Stacking

One important question in UM/UIM cases is whether policies can be “stacked.”

Stacking may allow you to combine coverage from:

• Multiple vehicles on your policy
• Multiple household policies

Whether stacking is allowed depends on policy language and state law.

Policy analysis is often necessary to determine maximum available recovery.

How UM/UIM Claims Are Valued

UM/UIM claims are calculated similarly to standard injury cases and consider:

• Total medical expenses
• Future treatment needs
• Lost income
• Pain and suffering
• Permanent impairment
• Fault allocation
• Policy limits

However, recovery is limited to your policy’s UM/UIM limits unless additional coverage exists.

When a UM/UIM Claim Becomes Litigation

If negotiations fail, a UM/UIM claim may proceed to:

• Arbitration (if required by policy)
• Lawsuit against the insurer
• Trial

Preparation for litigation often improves settlement leverage.

Frequently Asked Questions: Uninsured and Underinsured Motorist Claims

Can I file a UM claim in a hit-and-run accident?

Yes, if the hit-and-run driver cannot be identified and your policy includes UM coverage.

Will filing a UM claim increase my insurance rates?

Policies vary, and state regulations affect rate changes. However, legitimate claims should not automatically trigger penalties.

What if the at-fault driver had minimum coverage?

You may pursue a UIM claim if your damages exceed their limits.

Why Legal Representation Matters in UM/UIM Claims

Although you are dealing with your own insurer, these cases can become adversarial.

An experienced attorney can:

• Analyze policy language
• Identify stacking opportunities
• Evaluate full damages
• Protect against fault shifting
• Negotiate aggressively
• Prepare for arbitration or trial

At John Michael Bailey Injury Lawyers, uninsured and underinsured motorist claims are handled with the same attention and preparation as any serious injury case.

Our law firm has over 45 years of representing clients throughout Tupelo, Mississippi; Memphis, Tennessee and surrounding areas.

Consultations are free, and there is no fee unless compensation is recovered.