One of the most important and most misunderstood types of auto insurance coverage in Massachusetts is uninsured and underinsured motorist (UM/UIM) coverage. When the driver who caused your accident has no insurance — or has inadequate insurance to cover your losses — your own UM/UIM coverage can be the difference between full compensation and a devastating financial loss. Here is what Massachusetts drivers need to know.
Massachusetts Minimum Insurance Requirements
Massachusetts requires all registered motor vehicles to carry minimum liability insurance: $20,000 per person and $40,000 per accident in bodily injury coverage. These minimums are among the lowest allowed under state law, and they are routinely inadequate in cases involving serious injuries — a single hospitalization and surgery can easily exceed $100,000. When the at-fault driver carries only the minimum — or no insurance at all — victims without adequate UM/UIM coverage are left with a recovery far below their actual losses.
How Uninsured Motorist Coverage Works in Massachusetts
Uninsured motorist (UM) coverage applies when you are injured by a driver who has no liability insurance, or by a hit-and-run driver who cannot be identified. Massachusetts requires insurers to offer UM coverage in amounts at least equal to the bodily injury liability limits you carry. When you make a UM claim, your own insurer steps into the shoes of the at-fault driver — you make your claim against your own policy, not against the uninsured driver directly.
How Underinsured Motorist Coverage Works
Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance — but not enough to fully cover your losses. In Massachusetts, your UIM coverage is “excess” above the at-fault driver’s liability limits: you first exhaust the at-fault driver’s liability coverage, then access your own UIM coverage up to your policy limits. For example: if the at-fault driver has $20,000 in coverage and your damages are $200,000, your UIM coverage (if you carry $100,000 in UIM) would provide up to an additional $80,000 (your $100,000 limit minus the $20,000 already paid).
Why You Should Carry Higher UM/UIM Limits
The minimum UM/UIM coverage required in Massachusetts is the same as the minimum liability limits — $20,000 per person. For a serious accident involving significant medical costs, lost wages, and pain and suffering, this amount is often wholly inadequate. Increasing your UM/UIM limits to $100,000, $250,000, or higher typically costs very little in additional premium and can provide critical protection. This is particularly important for motorcyclists, cyclists, and pedestrians who face higher injury risk.
How Larson Law Handles UM/UIM Claims
UM/UIM claims in Massachusetts are often more adversarial than standard liability claims, because you are essentially suing your own insurance company. Insurers have the same financial incentives to minimize UM/UIM payouts as they do any other claim. Our attorneys handle UM/UIM claims throughout Massachusetts — navigating the complex interplay between liability coverage, UM/UIM coverage, and medical lien obligations to maximize total recovery. Contact us for a free consultation.