Home › X Answers › What Happens If the Other Driver Does Not Have Enough Insurance?

What Happens If the Other Driver Does Not Have Enough Insurance?

By AutoInsuranceBundle.pro · Published November 6, 2026 · Reviewed November 6, 2026

Short answer: If the at-fault driver has insurance but the limits are too low to pay your losses, that driver's liability policy usually pays first up to those limits. After that, your own underinsured motorist coverage is designed to cover the shortfall, and collision coverage can repair your car subject to your deductible. Uninsured motorist coverage is the companion protection for a driver with no insurance or a hit-and-run. State-minimum liability on the other policy is often not enough for a serious crash. Check your declarations page for both UM and UIM, and do not treat a neighbor's dollar figures as typical. State rules vary.

The other driver can have a valid policy and still leave you with unpaid bills. That is the underinsured-motorist problem, and it is different from being hit by someone with no insurance at all. The at-fault policy pays first, up to its limits. After those limits are used up, your own coverages are what stand between you and the rest of the loss.

What people on X are saying

The public discussion is about drivers who did carry insurance, just not enough of it, and about people who waived the coverage that would have filled the gap.

@TerrelTybie urged others to understand how a policy handles an underinsured motorist, and described a crash in Missouri where the other driver carried only the minimum coverage allowed there. The medical and repair figures in that post are one person's account, not a verified typical claim and not a substitute for Missouri's published minimums. @SSpotterson explained that uninsured-motorist coverage often sits next to underinsured coverage, and that if you are one of several vehicles damaged by the same at-fault driver, that driver's limits may run out before your car is repaired. @Joeyself called uninsured and underinsured coverage "essential these days" and said it is hard to explain the outcome when someone waived those coverages to save money and then faced an at-fault driver with nothing left to collect.

Those posts are useful as questions. They are not a national average of claim sizes, and they are not legal advice about every state.

If the other driver has no policy at all, start with What Happens If an Uninsured Driver Hits My Car? and Hit by an Uninsured Driver: What to Do. This page is about limits that exist but run out.

What UM and UIM actually pay

The Insurance Information Institute says that, with the exception of New Hampshire, every state has a minimum mandatory car insurance requirement, and that many drivers still go without coverage. III estimates that about one out of every eight drivers does not carry auto coverage, and that in some states the figure is one out of five. Uninsured and underinsured motorist coverage is designed for that gap.

III separates the coverages this way:

• Uninsured motorist (UM) coverage, also called uninsured motorist bodily injury, pays your and your passengers' medical bills and lost wages if an uninsured at-fault driver hits you. III says it also applies if you are hit as a pedestrian or in a hit-and-run.
• Uninsured motorist property damage (UMPD) is the companion coverage for damage to your car or other property, because basic UM often covers injuries, not the vehicle. Availability depends on the state.
• Underinsured motorist (UIM) coverage applies when the at-fault driver has liability insurance, but those limits do not cover the full extent of the damage. III says UIM then covers the shortfall.

III's auto insurance basics page makes the same split: UM reimburses you when the accident is caused by an uninsured motorist or a hit-and-run, and underinsured coverage covers costs when another driver lacks adequate coverage to pay for a serious accident. A handful of states require uninsured coverage to be included in every auto policy. In other states you can reject it. Check your declarations page instead of assuming it is there.

The North Carolina Department of Insurance answers the exact consumer question, "What if the other driver’s insurance isn’t enough to pay my bills?" For medical costs, North Carolina says your UIM coverage can cover the difference between the other driver's liability limits and your own UIM limits, and that medical payments coverage may also help. For property damage, North Carolina says the difference could be covered by collision coverage. That is North Carolina's published answer. Other states may handle property damage through UMPD, collision or both.

This is also why state-minimum liability on the other car is a thin backstop. Minimum limits are a legal floor for the other driver, not an estimate of what your hospital bill or your car's value will be.

What to do after the other driver's limits run out

1. Exchange information and report the crash as your policy and your state require. Get the other driver's insurer, policy number and claim number in writing.
2. Ask that insurer, in writing, for the liability limits that apply to this crash. If several people were hurt or several cars were damaged, ask whether those limits are shared.
3. Open a claim on your own policy if you have collision, medical payments or personal injury protection, UM or UIM. Waiting to see whether the other company "takes care of it" can cost you time.
4. Read your declarations page for separate UM and UIM limits. They are not always the same number, and one can be present without the other.
5. Keep medical bills, repair estimates and proof of missed work. UIM and medical payments claims run on documents, not on a social-media summary of the crash.
6. Ask how your state treats the other driver's payment: some states reduce your UIM recovery by the amount already paid, and some use different stacking or offset rules. Confirm that with your insurer or your state insurance department.
7. Do not sign a full release for the other driver's limits until you understand what that does to a later UIM claim.

:::template Subject: Request for the at-fault driver's liability limits and my UIM options

Hello,

I was involved in an accident in which the other driver appears to be at fault and may not have enough liability coverage. Please confirm in writing the other insurer's name, claim number and the bodily injury and property damage limits that apply.

Please also tell me whether I have uninsured motorist coverage, underinsured motorist coverage, medical payments or personal injury protection, and collision coverage on my policy, and how to open each claim if the other driver's limits are not enough.

Thank you. :::

If a rental car is part of the repair timeline, that is a separate coverage question. See Does Car Insurance Cover a Rental Car After an Accident?.

Edge cases and common mistakes

Waiving UM or UIM to lower the premium only works until you need it. III says a handful of states require UM on every policy, but many states let you reject it. If you rejected it, the other driver's empty limits become your problem.

Do not assume "the other person was insured" means you will be made whole. Insured and adequately insured are different facts.

A hit-and-run is usually a UM problem, not a UIM problem, because there is no policy to collect from first. Report it as your state requires and see Hit-and-Run Accident: What to Do.

More answers built from public X questions are collected at X Answers.

If you need to compare UM and UIM limits before a renewal, or after a crash where the other driver's coverage ran out, a licensed agent can review the same options side by side.

FAQ

What happens if the other driver does not have enough insurance?

That driver's liability policy usually pays first, up to its limits. Your underinsured motorist coverage and, for the car, your collision coverage are the usual ways to cover the rest. State rules vary.

What is the difference between UM and UIM?

UM applies when the at-fault driver has no insurance or, in many policies, when it is a hit-and-run. UIM applies when that driver has insurance that is not enough. III describes both on its uninsured-motorist page.

Will collision coverage repair my car if the other limits run out?

Often yes, if you carry collision, subject to your deductible. North Carolina's consumer FAQ points to collision for the property-damage shortfall. Your insurer may later try to recover from the other driver.

Does the other driver's state-minimum policy protect me?

It protects them up to a legal minimum. It may not come close to your medical bills or your car's value. That is the point of UIM and of carrying more than the minimum on your own policy.

Can I collect UIM if I waived it to save money?

Not if the coverage is not on the policy. Some states require UM. Many let you reject UM, UIM or both. Check the declarations page and any rejection form you signed.

What if several cars were damaged in the same crash?

One at-fault liability limit may have to be shared. That is one reason UIM and collision matter even when the other driver has a policy.

Should I wait for the other insurer to finish before I call my own?

No. Report the claim as your policy requires. You can still pursue the other driver's limits while using your own collision, medical payments or UIM.

Where do I complain if the other insurer will not confirm its limits?

Start with that company in writing, then your own insurer, then your state insurance department. Limits and claim-handling rules are state matters.

Important: This article is general information, not legal, tax, or insurance advice, and coverage rules vary by state, insurer, and policy. AutoInsuranceBundle.pro is a free, independent insurance comparison and referral service. We are not an insurance company, we do not issue policies, and we do not provide insurance advice. Calls to the number on this site are routed to licensed insurance agents or agencies in our partner network, who may receive compensation. Calling is completely voluntary and there is no obligation to buy. Rates, discounts, and availability vary by carrier, state, and individual eligibility; not all carriers, products, or discounts are available in all states. Calls may be recorded for quality and compliance purposes.