Uninsured vs. Underinsured Motorist Claims in Pennsylvania

In Pennsylvania, an uninsured motorist (UM) claim applies when the at-fault vehicle has no applicable liability insurance, its insurer denies coverage or is insolvent, or it is an unidentified hit-and-run vehicle. An underinsured motorist (UIM) claim applies when the at-fault vehicle has liability insurance but its limits are "insufficient to pay losses and damages." Both definitions are in 75 Pa.C.S. § 1702, and both claims are made against your own auto insurer. Under Erie Insurance Exchange v. Bristol (Pa. 2017), the limitations period on either claim starts at an alleged breach of the policy, not at the crash. Hit-and-run claims carry separate police and insurer notice requirements.

UM vs. UIM in Pennsylvania at a Glance

People often use these terms interchangeably because they sit side by side on the declarations page. They are separate coverages with different triggers and different traps. For a deeper primer on each one, see our guides to how uninsured motorist coverage works and underinsured motorist coverage. This page puts them next to each other so you can tell which claim you have and what it demands of you.

Issue	Uninsured motorist (UM)	Underinsured motorist (UIM)
What triggers it	No liability insurance or self-insurance applies; the insurer "denies coverage" or is in insolvency proceedings; or an unidentified vehicle caused the accident (§ 1702)	Liability limits are "insufficient to pay losses and damages" (§ 1702)
Who pays	Your own UM carrier, or another policy under § 1733	The at-fault driver's liability carrier first, then your UIM carrier, or another policy under § 1733
What you must prove	You are "legally entitled to recover damages" from the owner or operator (§ 1731(b))	You are "legally entitled to recover damages" from the owner or operator (§ 1731(c))
Hit-and-run	Yes, if the accident is reported to police or a proper governmental authority and your insurer is notified as § 1702 requires	Generally not the fit, because the vehicle is unidentified and no liability limits are known
Settlement with the at-fault driver	Usually no liability policy to settle with, unless a carrier has denied coverage	The central step: check your policy's consent and exhaustion language before you sign a release
How the liability limits count	Usually nothing to credit, because no liability policy is paying	Your UIM carrier may credit the at-fault driver's full limits against your damages (Boyle; Schneider)
Limited tort	No noneconomic damages for a person barred under § 1705 (§ 1731(d)(2))	Same rule (§ 1731(d)(2))
Stacking	Applies unless validly waived (§ 1738)	Applies unless validly waived (§ 1738)
Limitations period	Runs from an alleged breach, such as denial or refusal to arbitrate (Bristol)	Same accrual rule (Bristol)
Bad faith remedy	42 Pa.C.S. § 8371	42 Pa.C.S. § 8371

One more rule ties the two together. Under 75 Pa.C.S. § 1731(d)(1), "A person who recovers damages under uninsured motorist coverage or coverages cannot recover damages under underinsured motorist coverage or coverages for the same accident." If more than one vehicle contributed to your crash, and one was uninsured while another carried low limits, the choice of claim needs thought before anything is paid.

What the Statutes Actually Say

75 Pa.C.S. § 1702: the definitions

Section 1702 defines an "underinsured motor vehicle" in a single line: "A motor vehicle for which the limits of available liability insurance and self-insurance are insufficient to pay losses and damages."

The "uninsured motor vehicle" definition has three parts:

• "A motor vehicle for which there is no liability insurance or self-insurance applicable at the time of the accident."
• "A motor vehicle for which the insurance company denies coverage or the insurance company is or becomes involved in insolvency proceedings in any jurisdiction."
• "An unidentified motor vehicle that causes an accident resulting in injury provided the accident is reported to the police or proper governmental authority and the claimant notifies his insurer within 30 days, or as soon as practicable thereafter, that the claimant or his legal representative has a legal action arising out of the accident."

The second bullet surprises people. A driver may have shown an insurance card at the scene, yet if that carrier denies coverage, the vehicle can fall within the UM definition. "Uninsured" in the statute is broader than the everyday word.

75 Pa.C.S. § 1731: optional coverage, strict rejection forms

Section 1731(a) requires insurers to offer both coverages on policies for vehicles "registered or principally garaged in this Commonwealth," and then states: "Purchase of uninsured motorist and underinsured motorist coverages is optional." So you can have one, both, or neither. UM and UIM are rejected on separate statutory forms, each of which covers "myself and all relatives residing in my household."

The forms matter because of subsection (c.1): "Any rejection form that does not specifically comply with this section is void. If the insurer fails to produce a valid rejection form, uninsured or underinsured coverage, or both, as the case may be, under that policy shall be equal to the bodily injury liability limits." Do not assume you have no UM or UIM because an agent or adjuster said so. Ask for the signed form.

75 Pa.C.S. § 1733: which policy pays first

When more than one policy applies, § 1733(a) sets the order for both UM and UIM:

• First: "A policy covering a motor vehicle occupied by the injured person at the time of the accident."
• Second: "A policy covering a motor vehicle not involved in the accident with respect to which the injured person is an insured."

A passenger in a friend's car generally looks first to the policy on that car, and then to a policy on which the passenger is an insured. People hurt on foot or on a bike were not occupying a vehicle, so the analysis moves to household policies; our page on UM/UIM coverage for pedestrians and cyclists covers that situation. Among equal-priority sources, § 1733(b) tells the insurer asked first to "process and pay the claim as if wholly responsible" and then seek contribution from the others.

75 Pa.C.S. § 1738: stacking

Section 1738(a) applies to both coverages: "When more than one vehicle is insured under one or more policies providing uninsured or underinsured motorist coverage, the stated limit for uninsured or underinsured coverage shall apply separately to each vehicle so insured." A named insured may waive stacking, but a form that does not comply "is void" under § 1738(e). Waivers, exclusions, and the Supreme Court decisions in this area are covered in our guide to stacked versus unstacked UM/UIM coverage.

Hit-and-Run Claims: Two Separate Notice Requirements

The first question after a hit-and-run crash is whether you have any claim at all. You may. An unidentified vehicle can be an uninsured motor vehicle, but only if the § 1702 conditions are met, and the courts treat the two conditions differently.

• Report to the police or proper governmental authority. Section 1702 makes the report a condition of treating an unidentified vehicle as uninsured. In State Farm Mutual Automobile Insurance Co. v. Foster, 889 A.2d 78 (Pa. 2005), a highway flagger jumped out of the way of an unidentified vehicle and told her employer, her doctors, and her insurer, but not the police. The lead opinion, which did not draw a majority of the Justices, concluded that "neither its plain language, the case law interpreting it, nor its underlying policy require that prejudice must be established before uninsured coverage can be denied based on lack of police notification." The Court upheld the denial.
• Notify your insurer. The claimant must also tell the insurer within 30 days, or as soon as practicable, of the legal action arising from the accident. The Foster lead opinion said the statute "requires reporting to the insurer in addition to, not instead of, notifying the police." Late notice to the insurer is treated differently: in Vanderhoff v. Harleysville Insurance Co., 997 A.2d 328 (Pa. 2010), the Court distinguished Foster and said "The absence of any language in the statute eliminating the prejudice requirement of Brakeman is therefore controlling in this case," then remanded on whether the insurer was prejudiced. The case returned to the Court on that question, 78 A.3d 1060 (Pa. 2013). The Court affirmed the Superior Court's ruling for the insurer, weighing the extent and success of its investigation against the insured's reasons for the delay, and said prejudice "does not require proof of what the insurer would have found had timely notice been provided." Late notice can cost you the claim.

The practical lesson is short. Call the police from the scene or as soon as you are able, and make sure the unidentified vehicle appears in what you tell them. Then give your auto insurer written notice. Vanderhoff shows why: the "phantom vehicle" there did not appear in the original police report or in the claimant's early accounts. If you have questions about what your policy adds to these requirements, an attorney can confirm how this applies to your case. For more on the first days after a driver flees, see what a hit-and-run lawyer actually does in Pennsylvania.

Excess vs. Gap: How UIM Is Measured

This is the most useful thing to understand about UIM, and it is a place where a quick comparison of numbers on two policies can mislead you. "Gap" UIM compares the at-fault driver's limits with your own UIM limits. Pennsylvania's definition compares the at-fault driver's limits with your losses.

In Allwein v. Donegal Mutual Insurance Co., 671 A.2d 744 (Pa. Super. 1996), the Superior Court explained that under gap coverage a vehicle would not count as underinsured if its limits matched or exceeded the victim's UIM benefits, regardless of the losses. It called that result "directly at odds with the statutory language," because § 1702 looks to whether the liability limits are less than the victim's losses and damages, and it found support for the view "that § 1702 is worded so as to require excess underinsurance coverage."

What that means for you: the question is not whether your UIM limit is bigger than the other driver's liability limit. The question is whether your damages exceed the other driver's liability limit. Even if the at-fault policy looks equal to or larger than your UIM limit, your UIM coverage may still be in play. Your own policy language still needs to be read, and an attorney can confirm how this applies to your case.

Your UIM carrier does get credit for the liability limits. In Boyle v. Erie Insurance Co., 656 A.2d 941 (Pa. Super. 1995), the court construed an exhaustion clause as a "threshold requirement" and not as a bar to UIM benefits, and enforced a credit against UIM coverage equal to the tortfeasor's maximum liability coverage. The Pennsylvania Supreme Court described this "credit-for-limits approach" as "a reasonable compromise" in Nationwide Insurance Co. v. Schneider, 960 A.2d 442 (Pa. 2008). So if you accept less than the at-fault driver's limits, the difference may come out of your own recovery. That is a decision to run through carefully, with every expected number in front of you.

Settling With the At-Fault Driver: The Consent Trap

A UIM claim often follows a settlement offer from the at-fault driver's carrier. Many policies contain a consent-to-settle clause, and this step can do lasting damage to a UIM claim. The clause exists because your UIM carrier may have subrogation rights against the at-fault driver, and a release can cut those rights off.

Do not assume a settlement without consent is harmless. In Nationwide Mutual Insurance Co. v. Lehman, 743 A.2d 933 (Pa. Super. 1999), the court applied the reasoning of Brakeman v. Potomac Insurance Co., 371 A.2d 193 (Pa. 1977). It concluded that "the purpose of a consent-to-settle clause in an insurance policy is to protect against an insured prejudicing the insurer's interests," and found no error in "placing upon Nationwide the burden of coming forward and proving that the settlement prejudiced its interests in order to deny UIM coverage."

Lehman helps injured people, but do not treat it as permission to skip the step. It means a fight over prejudice instead of a clean file. Before you sign a release, give your UIM carrier written notice of the proposed settlement, ask for written consent or a waiver of subrogation, and keep the response. See also settling compared with filing a lawsuit.

Deadlines: Four Different Clocks

A UM or UIM claim does not run on the same clock as the injury lawsuit against the driver. Several deadlines can be running at once, as our Pennsylvania statute of limitations FAQ explains more broadly.

The claim against the at-fault driver

Under 42 Pa.C.S. § 5524(2), an action for injuries or death caused by negligence "must be commenced within two years." An injury or survival claim is measured from the date of injury, and a wrongful death claim from the date of death. Do not let this deadline pass while a UIM claim is pending. Families dealing with a fatal crash can read more about an uninsured wrongful death claim.

The UM/UIM contract claim

Before 2017, Superior Court decisions tied the clock to the accident and the insured's knowledge that the other driver was uninsured. Erie Insurance Exchange v. Bristol, 174 A.3d 578 (Pa. 2017), changed that. The parties there agreed "the applicable statute of limitations is the four-year limitation" in 42 Pa.C.S. § 5525, and the Supreme Court held that "the proper circumstance to start the running of the limitation period is an alleged breach of the insurance contract, which will be occasioned in this context by a denial of a claim or the refusal to arbitrate." The Court said it would "overrule Boyle and its progeny to the extent those cases are at variance," referring there to Boyle v. State Farm, 456 A.2d 156 (Pa. Super. 1983), a different case from the Boyle v. Erie decision above.

That is favorable, but it is not a reason to wait. The Court itself observed that "an insured would rarely be advantaged by delay in the submission of a claim." A federal case applying Bristol shows how the clock can run out. In Devine v. GEICO General Insurance Co. (E.D. Pa. Jan. 7, 2022), the court said the limitations period on a UIM claim denied in October 2015 "expired four years later." A coverage letter may matter even if it does not use the word "deny." Save every coverage letter and calendar from its date. Your policy may also have its own terms, and an attorney can confirm how this applies to your case.

Hit-and-run notice

Section 1702 gives you 30 days, or as soon as practicable thereafter, to notify your insurer, and separately requires a report to the police or proper governmental authority. Your policy may set its own timing. Do both right away.

Bad faith

A statutory bad faith claim has its own two-year period, discussed next.

Bad Faith: 42 Pa.C.S. § 8371

UM and UIM claims are unusual because your own insurer becomes the party on the other side. Under 42 Pa.C.S. § 8371, "if the court finds that the insurer has acted in bad faith toward the insured," the court may award interest "in an amount equal to the prime rate of interest plus 3%," "punitive damages against the insurer," and "court costs and attorney fees against the insurer."

The standard is demanding. In Rancosky v. Washington National Insurance Co., 170 A.3d 364 (Pa. 2017), the Supreme Court held that a plaintiff must demonstrate "by clear and convincing evidence, (1) that the insurer did not have a reasonable basis for denying benefits under the policy and (2) that the insurer knew or recklessly disregarded its lack of a reasonable basis in denying the claim." Proof of self-interest or ill will is not required. A low offer or a disagreement over value does not by itself meet that test.

Timing matters here too. A § 8371 claim carries a "two-year statute of limitations" under Ash v. Continental Insurance Co., 932 A.2d 877 (Pa. 2007). So a bad faith clock may expire before the UIM dispute is over.

What Compensation May Be Available

UM and UIM coverage track what you could recover from the at-fault driver, up to your available limits. Under § 1731, the coverage protects people "legally entitled to recover damages" from the owner or operator. Depending on your facts, that may include medical expenses, lost income and earning capacity, and, if your tort selection allows it, pain and suffering and other noneconomic loss. See our overview of compensation in a Pennsylvania injury case.

Two limits apply. Section 1731(d)(2) says a person "precluded from maintaining an action for noneconomic damages under section 1705 (relating to election of tort options) may not recover from uninsured motorist coverage or underinsured motorist coverage for noneconomic damages." Read more on limited tort and full tort. And § 1722 applies "in any uninsured or underinsured motorist proceeding," so a person eligible for first-party benefits is precluded from recovering "the amount of benefits paid or payable" under them. In a truck crash the first question is usually how much liability insurance the carrier must have, and UIM may matter only after that coverage is identified; see our truck accident practice page.

Mistakes to Avoid

• Not calling the police after a hit-and-run. Under Foster, the insurer need not show prejudice from a missing police report.
• Telling only your employer, doctor, or adjuster. Section 1702 does not treat these as substitutes for police notice.
• Signing a release before dealing with your UIM carrier. Consent language is a fight you can avoid in advance.
• Accepting less than the liability limits without doing the math. Under the credit-for-limits approach, the shortfall may be yours.
• Assuming your UIM limit must exceed the other driver's limit. Allwein rejects that gap reasoning.
• Believing "you have no coverage" without seeing the form. A noncompliant rejection form is void under § 1731(c.1).
• Ignoring a coverage letter. It may be the event that starts a four-year clock and a two-year bad faith clock.
• Giving a recorded statement without preparation. See our guide on adjuster statements. Your policy may require cooperation, so ask what is required before you speak.

Why Act Now

The hit-and-run notice period is short. Vehicle data, video, and witnesses can disappear. A police report or a notice letter takes little time now and can be hard to repair later. Even where the contract clock has not started, the two-year tort deadline has.

What Happens Next

1. Every declarations page in the household, the policy booklets, and any signed rejection, waiver, or lower-limits forms should be collected.
2. The at-fault vehicle's coverage status should be identified, because it decides whether the claim is UM or UIM.
3. Police and insurer notice should be confirmed, or given right away, and the § 1733 priority order applied.
4. Your injuries and losses are documented, and claims are made against the at-fault driver and any other responsible party.
5. For a UIM claim, your carrier's consent should be sought before any release.
6. The UM or UIM claim is presented and, if it does not resolve, moves to the policy's arbitration or court process.

Why Work With Quinlan Law Group

I am Sean Quinlan, a Pennsylvania attorney since 2001, with offices in Camp Hill and Harrisburg. UM and UIM claims turn on documents and dates, so the file should be read line by line for forms problems and missed notice. The review is free and confidential, and it covers which deadlines apply. You can read more about these claims on our Pennsylvania car accident lawyer page.

Frequently Asked Questions

What is the difference between uninsured and underinsured motorist coverage in Pennsylvania?

Under 75 Pa.C.S. § 1702, UM applies when the at-fault vehicle has no applicable liability insurance, its insurer denies coverage or is insolvent, or it is an unidentified vehicle that meets the reporting conditions. UIM applies when the vehicle has liability insurance whose limits are insufficient to pay your losses and damages.

Is a hit-and-run an uninsured or underinsured claim?

A hit-and-run is generally handled as a UM claim. Section 1702 treats an unidentified vehicle as uninsured if the accident is reported to the police or a proper governmental authority and you notify your insurer within 30 days, or as soon as practicable thereafter.

Can I collect both UM and UIM for the same crash?

No. Under § 1731(d)(1), a person who recovers under UM coverage cannot recover under UIM coverage for the same accident. Stacking is a separate issue; it can increase the limit of the one coverage that applies.

Does my UIM limit have to be higher than the other driver's liability limit?

Not under Pennsylvania's excess approach. In Allwein v. Donegal Mutual (Pa. Super. 1996), the court read § 1702 to compare the liability limits with your losses and damages, not with your UIM limit. Your carrier may still credit the liability limits against your damages.

How long do I have to bring a UM or UIM claim in Pennsylvania?

In Erie Insurance Exchange v. Bristol (Pa. 2017), the Supreme Court held the limitations period starts at an alleged breach of the policy, such as a denial of a claim or refusal to arbitrate, and the parties there agreed the four-year period in 42 Pa.C.S. § 5525 applied. Separate deadlines apply to your claim against the driver and to bad faith, so do not wait.

Do I need my insurer's permission to settle with the at-fault driver?

Check your policy, because many contain a consent-to-settle clause. Lehman (Pa. Super. 1999) put the burden on the insurer to prove prejudice from a settlement without consent, but the safer course is written notice and a written response before you sign a release.

Can I sue my own insurer for bad faith over a UM or UIM claim?

Possibly. 42 Pa.C.S. § 8371 allows interest, punitive damages, costs, and attorney fees if the court finds bad faith. Under Rancosky (Pa. 2017), you must show by clear and convincing evidence that the insurer lacked a reasonable basis and knew or recklessly disregarded that fact.

Talk to a Pennsylvania Injury Lawyer About Your Case

If the driver who hit you fled, had no insurance, or does not have enough coverage for your injuries, call (717) 724-7503 or request a free case review. You pay no attorney fee unless there is a recovery. You may be responsible for certain case costs and expenses in addition to the fee, as explained in your written fee agreement. Our Camp Hill office at 3425 Simpson Ferry Rd, Suite 100, Camp Hill, PA 17011 serves clients statewide.

This article is general information about Pennsylvania law, not legal advice for your specific situation, and reading it does not create an attorney-client relationship. Attorney advertising. Sean Quinlan, Esq., Quinlan Law Group, Camp Hill, PA.