Deep guide to uninsured and underinsured motorist coverage, bad-faith claim frameworks, insurance statistics, and state minimum auto liability limits.
An insurance settlement calculator is only useful if the reader understands the policy limits behind the estimate. A claim can look strong on liability and damages but still settle for less than medical bills if the at-fault driver has low bodily injury limits, no collectible assets, and the injured person did not buy uninsured or underinsured motorist coverage. The opposite can also be true: a case with moderate medical bills can produce a better settlement when liability is clear, treatment is consistent, multiple coverages apply, and the insurer faces a documented exposure above limits.
This guide explains the insurance layer behind settlement estimates: bodily injury liability, property damage liability, personal injury protection, medical payments coverage, uninsured motorist coverage, underinsured motorist coverage, umbrella policies, liens, and bad-faith pressure. It is written for consumers and publishers who need a public-source framework without pretending that the operator is a lawyer. Mustafa Bilgic is a non-attorney individual operator. This page is not legal advice and does not tell you whether to settle, sue, or make a policy-limits demand.
A calculator can organize documented losses: medical bills, future care, wage loss, property damage, pain and suffering, comparative fault, and policy limits. It can explain why a soft-tissue claim with limited treatment is different from a surgical fracture, traumatic brain injury, burn injury, or wrongful death case. It can also show the difference between gross settlement and net recovery after liens, fees, case expenses, and taxes. What it cannot do is force an insurer to pay, prove liability, identify every coverage, preserve a filing deadline, or create bad-faith exposure by itself.
The most important insurance input is the available coverage stack. Start with the at-fault driver's bodily injury liability limit. Then check whether the vehicle owner has a separate policy, whether an employer or commercial policy applies, whether a rideshare or delivery platform policy applies, whether a household umbrella policy applies, and whether your own UM/UIM coverage applies. In no-fault or PIP states, first-party medical benefits can pay early bills while the liability case is investigated. In health-insurance lien cases, the final settlement value depends on reimbursement rights as well as gross damages.
Uninsured motorist coverage is first-party insurance that may apply when the at-fault driver has no liability insurance, leaves the scene, or is otherwise treated as uninsured under the policy. Underinsured motorist coverage may apply when the at-fault driver's liability limit is lower than the injured person's damages. The exact trigger depends on state law and policy language. Some states compare the at-fault limit to the UIM limit. Some compare available liability coverage to total damages. Some allow stacking of multiple policies; others restrict it.
UM/UIM claims often feel like liability claims because the injured person still must prove fault, causation, and damages. But the claim is against the injured person's own insurer, so contract duties, consent-to-settle clauses, arbitration provisions, proof-of-claim deadlines, medical authorization disputes, and coverage exclusions matter. If the at-fault insurer offers its bodily injury limit, do not sign a release until UIM consent requirements are checked. Settling with the tortfeasor without preserving UIM rights can damage the first-party claim in some policies.
For calculator purposes, UM/UIM coverage should be entered as a separate layer, not as automatic extra money. The UIM carrier may receive a credit for the at-fault liability payment. Medical payments or PIP benefits may be offset or subrogated. Health-plan liens may reduce the net. A serious injury case can have theoretical damages of $500,000, an at-fault policy of $25,000, UIM of $100,000, and medical liens that still make the final negotiation complicated.
The Insurance Information Institute publishes auto insurance claim severity and uninsured-motorist statistics that help explain why minimum limits are often inadequate. Its auto statistics page reports 2024 average paid claim severity for auto bodily injury liability, property damage liability, collision, and comprehensive claims. Its uninsured-motorist background materials report that 15.4 percent of motorists were uninsured in 2023, measured through the ratio of uninsured motorist claims to bodily injury claim frequencies. It also reports state-level uninsured-motorist estimates, with some states much higher than the national figure.
These statistics do not predict an individual settlement. Claim severity is an insurance dataset, not a verdict database and not a promise of payment. Still, it is useful context. If a state minimum bodily injury policy offers only $25,000 per person and the national average paid bodily injury claim severity is above that, a hospital visit, imaging, injections, surgery, or lost wages can quickly exceed minimum coverage. That is the practical reason UM/UIM coverage appears so often in serious injury settlement analysis.
The table below is a settlement-planning snapshot for minimum liability shorthand. It updates the older III financial-responsibility table with current public changes for California, North Carolina, New Jersey, and Virginia based on state insurance or motor-vehicle sources. Minimums change, and some states use no-fault, PIP, medical payments, UM, UIM, or special financial-responsibility rules. Verify the current statute, insurance department page, and policy declarations before relying on any row.
| State | Minimum liability shorthand | Required coverage snapshot | UM/UIM or settlement note |
|---|---|---|---|
| Alabama | 25/50/25 | BI and property damage liability | UM/UIM optional unless selected by policyholder. |
| Alaska | 50/100/25 | BI and property damage liability | Higher baseline liability limits than many states. |
| Arizona | 25/50/15 | BI and property damage liability | UM/UIM usually offered but rejectable. |
| Arkansas | 25/50/25 | BI and property damage liability; PIP offer rules | PIP can affect first-party medical payment timing. |
| California | 30/60/15 | BI and property damage liability | California DMV lists $30,000/$60,000 bodily injury and $15,000 property damage minimums. |
| Colorado | 25/50/15 | BI and property damage liability | No-fault was repealed; liability and UM/UIM analysis are separate. |
| Connecticut | 25/50/25 | BI and property damage liability plus UM/UIM | UM/UIM is important in minimum-limit crashes. |
| Delaware | 25/50/10 | BI and property damage liability plus PIP | PIP can pay initial medical expenses regardless of fault. |
| District of Columbia | 25/50/10 | BI and property damage liability plus UM | D.C. minimums should be checked against DC insurance rules before relying. |
| Florida | 10/20/10 | PIP and property damage; BI often not compulsory for ordinary drivers | Florida is a special case: compulsory laws focus on PIP and property damage. |
| Georgia | 25/50/25 | BI and property damage liability | UM/UIM offers and rejections need policy review. |
| Hawaii | 20/40/10 | BI and property damage liability plus PIP | No-fault PIP changes early claim handling. |
| Idaho | 25/50/15 | BI and property damage liability | Minimum limits can be exhausted quickly in serious injury cases. |
| Illinois | 25/50/20 | BI and property damage liability plus UM/UIM | UM/UIM claim deadlines and consent clauses matter. |
| Indiana | 25/50/25 | BI and property damage liability | UM/UIM coverage is often rejectable and policy-specific. |
| Iowa | 20/40/15 | BI and property damage liability | A low per-person minimum can create underinsured-motorist issues. |
| Kansas | 25/50/25 | BI and property damage liability plus PIP and UM/UIM | PIP benefits are central to early medical-expense handling. |
| Kentucky | 25/50/25 | BI and property damage liability plus basic reparation benefits | No-fault election rules can affect tort thresholds. |
| Louisiana | 15/30/25 | BI and property damage liability | Low bodily injury minimums make UIM review important. |
| Maine | 50/100/25 | BI and property damage liability plus medical payments and UM/UIM | Maine has comparatively high minimum bodily injury limits. |
| Maryland | 30/60/15 | BI and property damage liability plus PIP/UM/UIM rules | PIP waivers and UM/UIM elections should be checked. |
| Massachusetts | 20/40/5 | BI and property damage liability plus PIP and UM | The $5,000 property damage minimum can be low for modern vehicles. |
| Michigan | 50/100/10 | Residual BI and property damage liability plus no-fault PIP choices | Michigan no-fault and tort thresholds require state-specific review. |
| Minnesota | 30/60/10 | BI and property damage liability plus PIP and UM/UIM | No-fault benefits interact with liability recovery. |
| Mississippi | 25/50/25 | BI and property damage liability | III reports Mississippi among the highest uninsured-motorist states for 2023. |
| Missouri | 25/50/25 | BI and property damage liability plus UM | UIM may be optional while UM is mandatory at minimum levels. |
| Montana | 25/50/20 | BI and property damage liability | Policy limits and medical liens drive net recovery analysis. |
| Nebraska | 25/50/25 | BI and property damage liability plus UM/UIM | UM/UIM offsets and stacking need policy review. |
| Nevada | 25/50/20 | BI and property damage liability | Minimum limits can be too low for surgery or permanent impairment claims. |
| New Hampshire | No compulsory liability purchase for many drivers | Financial responsibility after certain events | Drivers who buy coverage often use at least 25/50/25-type limits, but eligibility and proof rules differ. |
| New Jersey | 35/70/25 | BI and property damage liability plus PIP and UM/UIM | New Jersey's 2026 buyer guide reflects higher minimum bodily injury limits. |
| New Mexico | 25/50/10 | BI and property damage liability | III reports New Mexico among the highest uninsured-motorist states for 2023. |
| New York | 25/50/10 | BI and property damage liability plus PIP and UM | No-fault benefits and serious-injury threshold issues matter. |
| North Carolina | 50/100/50 | BI and property damage liability plus UM/UIM | NC DOI describes the July 1, 2025 increase to $50,000/$100,000/$50,000. |
| North Dakota | 25/50/25 | BI and property damage liability plus PIP and UM/UIM | PIP coordination and UIM coverage should be reviewed early. |
| Ohio | 25/50/25 | BI and property damage liability | Policy-limit demands should account for low minimum coverage. |
| Oklahoma | 25/50/25 | BI and property damage liability | Governmental Tort Claims Act notice can be separate from insurance deadlines. |
| Oregon | 25/50/20 | BI and property damage liability plus PIP and UM/UIM | PIP and UM/UIM claim handling can run alongside liability claims. |
| Pennsylvania | 15/30/5 | BI and property damage liability plus first-party medical benefits | Full tort versus limited tort selection can change injury recovery. |
| Rhode Island | 25/50/25 | BI and property damage liability | UM/UIM details should be checked in the policy. |
| South Carolina | 25/50/25 | BI and property damage liability plus UM | UM coverage is a frequent issue in serious crashes. |
| South Dakota | 25/50/25 | BI and property damage liability plus UM/UIM | Minimum policy limits can be exhausted quickly by hospital bills. |
| Tennessee | 25/50/15 | BI and property damage liability | III reports Tennessee among the highest uninsured-motorist states for 2023. |
| Texas | 30/60/25 | BI and property damage liability | PIP and UM/UIM are commonly offered and rejected in writing. |
| Utah | 25/65/15 | BI and property damage liability plus PIP | No-fault PIP and tort thresholds affect settlement timing. |
| Vermont | 25/50/10 | BI and property damage liability plus UM/UIM | UM/UIM can matter when at-fault limits are low. |
| Virginia | 50/100/25 | BI and property damage liability | Virginia SCC lists $50,000/$100,000 bodily injury and $25,000 property damage minimums. |
| Washington | 25/50/10 | BI and property damage liability | UM/UIM is often optional but valuable in hit-and-run claims. |
| West Virginia | 25/50/25 | BI and property damage liability plus UM | Policy language controls UM/UIM deadlines and offsets. |
| Wisconsin | 25/50/10 | BI and property damage liability plus UM | UIM availability depends on the purchased policy. |
| Wyoming | 25/50/20 | BI and property damage liability | Wyoming's constitutional damages-cap rule is separate from insurance limits. |
Bad faith is state-specific, but the settlement framework has recurring building blocks. First, identify the duty: the insurer's contractual obligations, statutory unfair-claims practices duties, and common-law duties to investigate, evaluate, communicate, and settle within limits when liability and damages justify it. Second, document liability and damages: police report, witness statements, photos, medical records, bills, wage loss, permanency evidence, future care, and lien information. Third, make coverage clear: declarations page, policy language, insured status, exclusions, reservations of rights, and any other available coverage. Fourth, give the insurer a fair opportunity to resolve the claim within limits when the law requires that opportunity.
A policy-limits demand is not magic language. It should identify the insured, claimant, date of loss, coverage at issue, liability facts, injuries, medical treatment, damages, deadline, release terms, and how liens or subrogation will be handled. Some states require strict compliance with statutory settlement-demand rules. Some scrutinize arbitrary deadlines, missing releases, unclear parties, or demands that require payment of uncovered claims. A demand that is designed to be impossible may not create useful pressure. A demand that is complete, reasonable, and supported by evidence is more likely to matter.
First-party bad faith for UM/UIM claims is different from third-party failure-to-settle exposure. In a first-party UM/UIM dispute, the insurer may be entitled to investigate liability, causation, damages, offsets, and coverage defenses. Delay alone may not be bad faith if there is a genuine dispute, but unreasonable investigation, failure to communicate, low offers without support, or ignoring clear evidence can create risk under some state laws. Because state rules vary, a licensed lawyer should evaluate bad-faith issues before a claimant accuses an insurer or rejects a settlement.
Settlement value has at least three layers: legal damages, proof risk, and collectability. Legal damages include medical bills, future care, lost income, pain and suffering, impairment, disfigurement, and sometimes punitive damages. Proof risk discounts the claim for disputed fault, causation, gaps in treatment, prior conditions, credibility, venue, and expert uncertainty. Collectability asks how much insurance or assets are actually reachable. Minimum auto insurance sits in the collectability layer.
For example, a broken leg with surgery might support damages far above $25,000. If the at-fault driver has only 25/50/25 coverage and no assets, the liability insurer may offer the per-person limit quickly. The next question is whether UIM exists, whether workers compensation or health liens must be repaid, whether a product or road-design defendant contributed, and whether a commercial policy applies. A calculator that stops at medical bills and multipliers misses the coverage investigation that often controls the real settlement.
In a multi-claimant crash, the per-accident limit matters. A 25/50 policy may provide $25,000 per person but only $50,000 total for all injured people. If four people are injured, each claimant may not receive the per-person maximum. Interpleader, global settlement conferences, priority disputes, and lien negotiations can become more important than ordinary multiplier math.
Use the ABA FindLegalHelp.org page, the ABA bar directories page, and the relevant state bar when coverage is unclear, injuries are serious, liability is disputed, a government entity is involved, the statute of limitations is approaching, or the insurer asks for a broad release. Referral resources do not guarantee representation, but they are safer than relying on anonymous directories or fake attorney profiles. A licensed lawyer can identify state-specific UM/UIM preservation steps, policy-limit demand requirements, bad-faith statutes, and litigation deadlines.
This page cannot give financial advice, but minimum liability limits are often low compared with serious injury losses. Discuss liability, UM/UIM, PIP, medical payments, and umbrella options with a licensed insurance professional.
Sometimes, but not always in the simple way consumers expect. State law and policy language determine credits, offsets, stacking, consent requirements, and trigger rules.
No. It may be fair when coverage is truly limited, but a coverage investigation should check other defendants, commercial policies, umbrella coverage, and UM/UIM before release.
Physical injury compensatory damages are often excluded from federal income under IRS guidance, but punitive damages, interest, wages, and nonphysical claims can be taxable. Use the settlement tax resources and a qualified tax professional.