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Insurance Bad Faith

UM/UIM Bad Faith Claims

You bought UM/UIM coverage to protect yourself from uninsured drivers. Now your own insurance company is fighting your claim as if you're the adversary. That's bad faith—and we hold them accountable.

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Key Takeaways

  • UM/UIM = first-party claim: Your own insurer owes you good faith, even when paying you
  • Oklahoma has high uninsured rates: ~25% of Oklahoma drivers lack adequate insurance
  • Stacking may apply: Multiple vehicles can mean multiple coverage limits
  • Bad faith damages available: Punitive damages possible for egregious conduct

Understanding UM/UIM Coverage

Oklahoma has one of the highest rates of uninsured drivers in the country—roughly 1 in 4 drivers lacks adequate insurance. That's why UM/UIM coverage is critical: it protects you when the driver who hits you can't pay.

When you file a UM/UIM claim, you're asking your own insurer to pay. This creates an unusual situation: the company you pay premiums to now has a financial incentive to minimize your claim. Despite this conflict, they still owe you good faith under 36 O.S. § 3629.

Uninsured Motorist (UM)

Covers you when the at-fault driver has no insurance:

  • Driver with no policy at all
  • Hit-and-run where driver fled
  • Unidentified driver (phantom vehicle)
  • Insurance company denies their driver's coverage

Underinsured Motorist (UIM)

Covers you when the at-fault driver has insufficient insurance:

  • At-fault driver has minimum liability only
  • Your damages exceed their limits
  • Takes effect after exhausting their coverage
  • Pays up to your UIM policy limits

How Insurers Fight UM/UIM Claims

When paying from their own pocket, insurers often become adversarial:

Disputing Liability

Questioning whether the other driver was truly at fault, even with clear evidence, to avoid paying your claim.

Minimizing Injuries

Using their medical reviewers to claim your injuries aren't as serious as documented by your own doctors.

Pre-Existing Condition Defense

Blaming your injuries on prior conditions rather than the accident—the same tactics they use as a liability insurer.

Lowball Settlements

Offering a fraction of your damages and pressuring you to accept before you understand the full extent of your injuries.

Wrongly Denying Stacking

Claiming you can't combine limits from multiple vehicles or policies when Oklahoma law allows stacking.

Excessive Delay

Sitting on your claim for months, hoping financial pressure forces you to accept less than you deserve.

Oklahoma UM/UIM Rules

Understanding Oklahoma's specific rules can strengthen your claim:

Mandatory Offer Requirement

Oklahoma insurers must offer UM/UIM coverage equal to your liability limits. You can only reject this coverage in writing. If you were never offered it properly, you may have coverage you didn't know about.

36 O.S. § 3636

Stacking Allowed

Oklahoma permits stacking of UM/UIM coverage. If you have multiple vehicles on your policy or multiple policies, you may be able to combine those limits for more protection.

Case law: Keel v. MFA

Consent to Settle

Before settling with the at-fault driver's insurer, you typically need your own insurer's consent—or you may waive your UIM rights. We handle this carefully to preserve all claims.

Policy provisions

Physical Contact Rule

For phantom vehicle (unknown driver) claims, Oklahoma cases generally require physical contact with the unidentified vehicle, with some exceptions for independent witness corroboration.

Policy provisions

Other Types of Bad Faith Claims

First-Party Bad FaithThird-Party Bad FaithStorm & Property ClaimsDelay & Denial TacticsHealth Insurance Bad FaithInsurance Bad Faith Overview

Frequently Asked Questions

UM (Uninsured Motorist) coverage pays when you're injured by a driver with no insurance. UIM (Underinsured Motorist) coverage pays when the at-fault driver's insurance isn't enough to cover your damages. You purchase this coverage from your own auto insurer to protect yourself when the other driver can't pay. Oklahoma requires insurers to offer UM/UIM coverage, though you can reject it in writing.
When you file a UM/UIM claim, your insurance company's interests suddenly oppose yours—they're paying, not defending you. Many insurers treat UM/UIM claims like adversarial lawsuits: disputing liability, questioning your injuries, offering lowball settlements, and delaying payment. This creates a conflict of interest that can lead to bad faith conduct.
Yes. Oklahoma's bad faith standards (36 O.S. § 3629) apply to UM/UIM claims. Your insurer owes you the same duty of good faith they owe on any first-party claim. When they unreasonably deny, delay, or underpay your UM/UIM claim, you may have a bad faith action entitling you to damages beyond policy limits, including potential punitive damages.
A driver is underinsured when their liability limits are less than your UM/UIM limits and less than your damages. For example, if the at-fault driver has $25,000 coverage and you have $100,000 UM/UIM, you can recover from your own insurer after exhausting the at-fault driver's limits—but only up to your UIM limits and only for damages exceeding what you already recovered.
Generally, yes for UIM claims. You typically must recover the at-fault driver's policy limits before accessing your UIM coverage. However, your insurer must consent to your settlement with the at-fault driver's insurer, and their refusal to consent can complicate things. For UM claims (truly uninsured drivers), no exhaustion is necessary.
Unfortunately, it's common—but it's not right. When insurers aggressively dispute their own policyholders' UM/UIM claims, they're violating the relationship of trust you're paying for. If your adjuster is denying legitimate injuries, demanding excessive documentation, or acting adversarially, document everything. This conduct may support a bad faith claim.
Oklahoma allows stacking of UM/UIM coverage, meaning you can combine limits from multiple vehicles or policies. If you have a car with $100,000 UM/UIM and a truck with $100,000 UM/UIM, you may have $200,000 in available coverage. Insurers sometimes wrongly deny stacked coverage—another potential bad faith issue.
UM coverage typically covers hit-and-run accidents where the at-fault driver fled and cannot be identified. You generally need physical contact with the other vehicle (or in some policies, independent witness corroboration). Insurers sometimes wrongly deny hit-and-run claims—if your claim was denied despite meeting policy requirements, consult an attorney.
Like other first-party bad faith claims, you can recover: (1) the UM/UIM benefits owed, (2) consequential damages caused by non-payment, (3) emotional distress, and (4) punitive damages if the conduct was egregious. Oklahoma's lack of punitive damage caps makes bad faith claims particularly significant for UM/UIM disputes.
Your policy likely has specific time limits for filing UM/UIM claims—often 2 years from the accident. The separate bad faith claim has its own 2-year tort limitation. Because these are your own benefits, act promptly: document the accident, preserve evidence, file your claim, and consult an attorney if your insurer is uncooperative.

You Paid for Protection. It's Time to Collect.

Your UM/UIM coverage exists for moments like this. If your insurer is fighting your valid claim, we fight back—aggressively and effectively.

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