How to File an Uninsured and Underinsured Motorist (UM/UIM) Claim After a Car Crash in South Dakota
In South Dakota, Uninsured and Underinsured Motorist (UM/UIM) coverage is mandatory on all auto policies. If you are hit by a driver without insurance or a hit-and-run driver, your own UM/UIM policy steps in to cover your medical bills and lost wages up to your policy limits.
A severe car accident is traumatic enough without discovering the at-fault driver has no insurance. Fortunately, South Dakota law mandates that every auto insurance policy sold in the state includes Uninsured and Underinsured Motorist (UM/UIM) coverage. Under S.D. Codified Laws § 58-11-9, your insurance company must offer you UM/UIM coverage that at least matches the state's minimum liability limits (currently $25,000 per person and $50,000 per accident). This coverage acts as a vital safety net, allowing you to seek compensation from your own insurer when the at-fault driver cannot pay. If your insurance company is refusing to honor your UM/UIM claim, browsing our US Lawyers directory can help you find a relentless South Dakota car accident attorney to fight for your payout.
Step-by-Step Process in South Dakota
Step 1: Securing Compensation After a Hit-and-Run
If you are the victim of a hit-and-run in cities like Brookings or Mitchell, South Dakota classifies the fleeing driver as an 'uninsured motorist.' To successfully file a UM claim, you must report the accident to law enforcement immediately. Under South Dakota Supreme Court precedent in Clark v. Regent Ins. Co., 270 N.W.2d 26 (SD Supreme Court 1978), insurers cannot deny coverage simply because there was no physical contact (such as when a phantom vehicle runs you off the road). However, you must still establish that an unidentified motorist caused the crash. Submitting Form DPS-AR1, South Dakota, Department of Public Safety, Motor Vehicle Traffic Accident Report and providing corroborating evidence, such as dashcam footage or eyewitness statements, is essential to prove your claim.
Step 2: Crashes with Out-of-State Tourists Who Carry Inadequate Minimums
During the annual Sturgis Motorcycle Rally and the summer tourist season at Mount Rushmore, South Dakota highways flood with out-of-state drivers. Many of these tourists come from states with extremely low minimum insurance requirements. If a tourist severely injures you and only carries $15,000 in liability coverage, but your medical bills are $100,000, they are considered an 'underinsured' motorist. Your attorney will first secure the $15,000 from the tourist's policy, and then file an Underinsured Motorist (UIM) claim against your own South Dakota policy to cover the remaining damages.
Step 3: Stacking UM/UIM Limits Across Multiple Family Vehicles
In some states, if you own three cars insured for $50,000 each, you can 'stack' them to create $150,000 in UM/UIM coverage. However, South Dakota specifically prohibits the stacking of coverage limits across multiple vehicles, barring UM stacking under S.D. Codified Laws § 58-11-9.8 and UIM stacking under S.D. Codified Laws § 58-11-9.9. Furthermore, under S.D. Codified Laws § 58-11-9.5, South Dakota operates as a 'difference in limits' state for UIM coverage. This means your maximum UIM payout is strictly capped by your UIM policy limit minus whatever amount you recover from the at-fault driver's liability insurance. An attorney can help analyze your family's policies to ensure you file under the coverage providing the highest recovery ceiling.
Step 4: Suing Your Own Insurer for Bad Faith
Just because you pay your premiums does not mean your insurance company will easily hand over a UM/UIM check. They step into the shoes of the at-fault driver and may argue that your injuries are exaggerated or that you were partially to blame under South Dakota's slight/gross negligence rules. If your insurer acts unreasonably or wrongfully denies your valid UM claim, you can file a complaint with the South Dakota Division of Insurance, Pierre. Furthermore, you can file a civil lawsuit for 'insurance bad faith' in the Lincoln County Circuit Court, Canton or your local courthouse to demand your benefits and potentially punitive damages.
How Much Does it Cost in South Dakota?
Pursuing a UM/UIM claim generally costs you nothing out of pocket. Most South Dakota personal injury lawyers represent clients on a contingency fee basis. If they successfully negotiate a settlement with your UM/UIM carrier, they usually retain roughly 33% of the payout. If your own insurer forces you to take them to trial for bad faith, the lawyer may take 40%. The court filing fee for a civil lawsuit in a South Dakota Circuit Court is currently around $70. If your lawyer needs to hire medical experts to prove the severity of your injuries to your insurer, those expert fees (often $3,000 to $8,000) are typically advanced by the law firm and deducted from your final settlement.
How Long Does the Process Take?
A standard UM/UIM claim can take anywhere from 6 to 12 months to resolve. The process cannot truly begin until you have reached Maximum Medical Improvement (MMI)-the point where doctors know the full extent of your permanent injuries. Once your lawyer sends a formal demand letter to your insurer, they typically have 30 to 60 days to respond. If the insurance company refuses to offer a fair settlement and you are forced to file a breach of contract and bad faith lawsuit against them, the litigation timeline will likely extend to 18 or 24 months before reaching a jury trial.
Frequently Asked Questions (FAQ)
Will my insurance rates go up if I file a UM/UIM claim?
Generally, South Dakota insurance companies are restricted from penalizing you or drastically raising your rates for accidents where you were completely not at fault, such as being hit by a drunk, uninsured driver or a hit-and-run.
Do I need UM/UIM coverage for property damage to my car?
No. In South Dakota, standard UM/UIM coverage strictly applies to bodily injuries (medical bills, pain and suffering, lost wages). To cover the physical damage to your vehicle from an uninsured driver, you must use your Collision coverage.
Can a pedestrian use their auto UM/UIM policy?
Yes. If you are walking through a crosswalk in Sioux Falls and are struck by a fleeing or uninsured driver, your own auto UM/UIM policy will generally cover your medical bills, even though you were not inside your vehicle at the time.
What is the difference between Uninsured and Underinsured?
Uninsured means the at-fault driver has absolutely no auto insurance. Underinsured means the at-fault driver has insurance, but their policy limits are too low to cover the full extent of the devastating injuries they caused you.
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