Also known as: uninsured motorist coverage · underinsured motorist coverage · UM/UIM coverage · UM coverage · UIM coverage · UM/UIM · uninsured motorist · underinsured motorist
Written by attorneys · grounded in primary & secondary sources — see below
A form of first-party automobile insurance that compensates an insured for bodily injury or property damage inflicted by an at-fault driver who carries no liability insurance or whose limits fall short of the insured's losses.
Ugo Ucelli and his wife retain the same firm after an uninsured driver injures their child. The firm also represents their UM insurer. When the wife later sues the husband for negligent entrustment, the firm faces an actual conflict. The court disqualifies the firm despite attempted waivers because prior joint representation created non-consentable adversity and confidentiality risks.
Ursula Upton purchases a policy with UM coverage but drives her own separately insured vehicle when struck by an underinsured motorist. Her insurer denies the claim under the household vehicle exclusion. The court upholds the denial, finding the exclusion validly prevents shifting coverage between vehicles and that the remaining UM protection meets statutory minimums.
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A non-consentable conflict arises when one client becomes a defendant against another, as occurs when a family member sues another in the same UM litigation. Advance waivers fail where serious adversity and confidentiality risks exist. Prior representation of any party creates a presumption of shared confidential information that can disqualify the firm even with screening.
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Courts generally hold that the exclusion narrows the scope of UM coverage yet still satisfies minimum statutory requirements. The reduction in premium that accompanies the exclusion supports its enforcement. Optional UM coverage may drop to zero under the exclusion when the policyholder accepted the corresponding premium savings.
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The MVFRL reflects legislative concern over rising insurance costs and the increase in uninsured drivers. Courts therefore interpret UM provisions to prevent coverage stacking across household vehicles rather than to maximize restoration. This policy overrides earlier no-fault principles favoring broader recovery.
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