Underinsured motorist coverage in Utah, governed by Section 31A-22-305, applies when the at-fault driver’s liability insurance is insufficient to cover your total damages. UIM coverage from your own policy fills the gap between the at-fault driver’s limits and your total losses, up to your UIM policy limits.
Last updated: July 2026
Key Takeaways
- Utah Code Section 31A-22-305 governs both UM and UIM coverage, requiring insurers to offer UIM coverage at limits equal to liability coverage.
- UIM coverage is triggered when the at-fault driver’s liability insurance limits are less than your total damages.
- You must generally exhaust the at-fault driver’s liability coverage before your UIM coverage becomes available.
- Utah allows UIM coverage stacking on multi-vehicle policies, potentially increasing available coverage.
- UIM claims are made against your own insurance company, which may require litigation to resolve disputes.
Underinsured motorist coverage is one of the most valuable yet most misunderstood protections available to Utah drivers. When you are injured by a driver whose insurance is insufficient to cover your damages, UIM coverage allows you to look to your own insurance policy for additional compensation. This can mean the difference between full recovery and being left with thousands of dollars in unpaid medical bills and lost wages.
Many Utah drivers do not realize that the state’s minimum insurance requirements of $25,000 per person and $65,000 per accident are often inadequate to cover the costs of a serious accident. A single hospital visit for a moderate injury can exceed $25,000. UIM coverage ensures that when your damages exceed the at-fault driver’s policy limits, your own insurance provides a source of additional compensation up to your UIM coverage limits.
What is the difference between UM and UIM coverage in Utah?
While both uninsured motorist and underinsured motorist coverage are governed by the same Utah Code section, they apply in different situations. UM coverage applies when the at-fault driver has no insurance at all. UIM coverage applies when the at-fault driver has insurance, but the policy limits are insufficient to cover your total damages. Both are designed to protect you from the financial consequences of being hit by an inadequately insured driver.
The distinction matters for claims processing. In a UM claim, your insurance company steps into the position of the uninsured driver and generally covers your damages up to your UM policy limits. In a UIM claim, the at-fault driver’s insurance pays first up to their policy limits, and then your UIM coverage may provide additional compensation up to your UIM limits, subject to certain calculations and offsets.
Utah law treats UIM coverage as a subset of UM coverage under Section 31A-22-305, and most insurance policies combine both coverages into a single UM/UIM endorsement. However, the triggers and claims processes are different, and understanding which coverage applies in your situation is essential for pursuing the correct claim.
When does underinsured motorist coverage apply in Utah?
UIM coverage applies when the at-fault driver’s liability insurance limits are less than the total amount of your damages. For example, if the at-fault driver has the minimum $25,000 in liability coverage and your total damages are $100,000, the at-fault driver’s insurance pays $25,000, and your UIM coverage may provide additional compensation up to your UIM policy limits.
To trigger UIM coverage, you must first establish that the at-fault driver is underinsured. This typically requires obtaining a copy of the at-fault driver’s insurance policy showing the liability limits. The determination of whether the driver is underinsured is made by comparing the policy limits to your total damages, not by comparing limits between the two policies.
UIM coverage is also subject to the same fault and damages rules that apply to any personal injury claim. You must prove that the at-fault driver was negligent and that their negligence caused your injuries. Your comparative fault percentage under Section 78B-5-818 reduces your damages before the UIM calculation is applied. The same four-year statute of limitations under Section 78B-2-308 applies to UIM claims.
How is a UIM settlement calculated in Utah?
The calculation of a UIM settlement in Utah involves several steps. First, the total value of your damages is determined, including medical expenses, lost wages, pain and suffering, and any other compensable losses. Second, your comparative fault percentage, if any, is applied to reduce the total damages. Third, the at-fault driver’s liability insurance pays up to their policy limits. Fourth, your UIM coverage pays the difference between the reduced damages and the liability payment, up to your UIM policy limits.
For example, suppose your total damages are $200,000, and you are found 0% at fault. The at-fault driver has $25,000 in liability coverage, and you have $100,000 in UIM coverage. The at-fault driver’s insurance pays $25,000. Your UIM coverage would then pay up to $100,000, leaving you with a total recovery of up to $125,000 from insurance. You would need to collect the remaining $75,000 from the at-fault driver personally, which may not be possible if they lack assets.
The calculation becomes more complex when stacking is involved or when there are multiple UIM policies available. Utah law allows UIM coverage stacking on multi-vehicle policies, meaning you may be able to combine UIM limits from multiple vehicles to increase the total coverage available. An experienced attorney can help calculate the correct UIM amount and ensure you receive the maximum coverage available under your policies.
Can I settle with the at-fault driver and still pursue a UIM claim in Utah?
Settling with the at-fault driver’s insurance company can affect your ability to pursue a UIM claim, so careful coordination is essential. In most cases, you should notify your own insurance company before settling with the at-fault driver’s insurer. Your insurer may require that its consent be obtained before you release the at-fault driver from liability, and failing to obtain consent could jeopardize your UIM claim.
Utah law generally requires that the at-fault driver’s liability limits be exhausted before UIM coverage applies. This means you must receive the full policy limits from the at-fault driver’s insurance before your UIM coverage becomes available. If you settle for less than the liability limits without your UIM insurer’s consent, you may waive your right to UIM benefits.
The UIM claims process typically involves your insurance company reviewing the settlement with the at-fault driver’s insurer and then negotiating with you over the amount of UIM benefits. If you cannot reach a settlement with your own insurance company on the UIM claim, you may have the right to file a lawsuit against your insurer. This is essentially a contract dispute over the terms of your insurance policy, and it is subject to the four-year statute of limitations.
Utah Code Section 31A-22-305 requires insurers to offer underinsured motorist coverage and establishes the framework for determining when UIM benefits are payable.
What are the limits on UIM coverage in Utah?
The limits of your UIM coverage are determined by your insurance policy. Utah law requires that UIM coverage be offered at limits equal to your liability coverage limits, but you can reject higher limits in writing. If you carry $100,000 in liability coverage, your UIM coverage must also be $100,000 unless you signed a written waiver accepting lower limits.
Your UIM coverage is subject to a set-off calculation. The amount of UIM benefits you receive is reduced by the amount paid by the at-fault driver’s liability insurance. This means that if your UIM limit is $100,000 and you receive $25,000 from the at-fault driver’s insurance, the maximum UIM payment would be $75,000, not $100,000. The total recovery from both sources cannot exceed your total damages or your UIM limit, whichever is lower.
Utah also requires that UIM coverage include protection for hit-and-run accidents where the driver cannot be identified, provided that the accident is reported to law enforcement and there is physical contact or corroborating evidence. This means that UIM coverage may apply even when the at-fault driver is unknown, as long as the other conditions are met.
| Scenario | Damages | At-Fault Driver’s Limits | Your UIM Limits | UIM Pays |
|---|---|---|---|---|
| Minor injuries | $15,000 | $25,000 | $50,000 | $0 (liability covers full damages) |
| Moderate injuries | $75,000 | $25,000 | $50,000 | $50,000 (up to UIM limit) |
| Severe injuries | $200,000 | $25,000 | $100,000 | $100,000 (up to UIM limit) |
| Stacked UIM (2 vehicles) | $200,000 | $25,000 | $100,000 x 2 | $100,000 to $175,000 depending on stacking |
Who is covered by my Utah underinsured motorist policy?
UIM coverage in Utah extends to the named insured, family members residing in the named insured’s household, and any person occupying the insured vehicle with permission at the time of the accident. This means that passengers in your vehicle are also protected by your UIM coverage if the at-fault driver’s insurance is insufficient to cover their injuries.
The coverage also extends to the named insured and family members when they are pedestrians struck by an underinsured motor vehicle. If you or a family member is walking and hit by a driver whose insurance is insufficient, your UIM coverage can provide additional compensation. This pedestrian protection is an important feature of Utah UIM coverage that many policyholders do not know about.
When multiple UIM policies may apply to a single accident, coordination rules determine which policy pays first. Generally, the policy covering the vehicle involved in the accident pays first, followed by any personal UIM policies held by the injured person. An attorney can help navigate the coordination rules to maximize your total UIM recovery.
Frequently Asked Questions
Is underinsured motorist coverage required in Utah?
Utah law requires insurers to offer UIM coverage at limits equal to the liability coverage in the policy. You can reject the coverage or select lower limits by signing a written waiver.
How is UIM coverage different from UM coverage in Utah?
UM coverage applies when the at-fault driver has no insurance. UIM coverage applies when the at-fault driver has insurance but the limits are insufficient to cover your total damages.
Do I have to exhaust the at-fault driver’s insurance before UIM applies in Utah?
Generally yes. The at-fault driver’s liability limits must be exhausted before UIM coverage becomes available. Your UIM coverage pays the difference, up to your policy limits.
Can I stack UIM coverage in Utah?
Utah law allows UIM coverage stacking on multi-vehicle policies, meaning you may combine UIM limits from multiple vehicles. Anti-stacking clauses in some policies may limit this right.
What happens if I settle with the at-fault driver without telling my UIM insurer?
Settling without your UIM insurer’s consent may jeopardize your UIM claim. Most policies require the insurer’s consent before you release the at-fault driver from liability.
Can I sue my own insurance company for UIM benefits in Utah?
Yes. If your insurance company refuses to pay UIM benefits or offers an unfair settlement, you can file a lawsuit against your own insurer within the four-year statute of limitations.
Does UIM coverage apply to hit-and-run accidents in Utah?
Yes, provided the accident is reported to law enforcement and there is physical contact between the vehicles or independent corroboration of the hit-and-run.
How long do I have to file a UIM claim in Utah?
The statute of limitations for a UIM claim is generally four years under Utah Code Section 78B-2-308, but your policy may require prompt notification. Check your policy for specific deadlines.
How can a Utah attorney help with an underinsured motorist claim?
An experienced Utah personal injury attorney can be invaluable in pursuing a UIM claim. Your attorney can evaluate whether the at-fault driver’s insurance is sufficient to cover your damages, calculate the correct UIM settlement amount, coordinate the liability settlement with your UIM claim to protect your rights, negotiate with your own insurance company for a fair UIM settlement, and file a lawsuit against your insurer if necessary to obtain the benefits you are owed.
Injured in an accident in Utah? Jeremy D. Eveland, MBA, JD, can help you understand your legal rights and pursue the compensation you deserve.
Call (801) 613-1472 or visit jeremyeveland.com to schedule a consultation today.
This article is for informational purposes only and does not constitute legal advice. Consult with a qualified Utah personal injury attorney for advice specific to your situation.
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