Yes. In Florida, if the at-fault driver’s insurance will not pay your full injury claim and you have underinsured motorist (UIM) coverage, you must tell your insurance company before you settle. Send written notice of the proposed settlement by certified or registered mail to every UIM insurer that covers you before you sign a release (Fla. Stat. § 627.727(6)(a)). A release is the signed paper that permanently ends your claim against the at-fault driver. That insurer then has 30 days after it receives the notice to approve the settlement or to pay you the amount of the offer itself. If the insurer approves, or does not pay you the offer amount within that time, you can sign the release and keep your UIM claim. If you already settled without sending notice, you can still keep the claim, but Florida appeals courts presume the insurer was harmed, and the burden is on you to prove it was not.
At a glance: Florida’s notice rule before settling a car accident claim
| Question | Florida rule | Law |
|---|---|---|
| When it applies | The settlement with the at-fault driver’s insurer would not fully pay your injury claim, and you have underinsured motorist coverage | § 627.727(6)(a) |
| Who sends notice | The injured person, or the personal representative (the person a court appoints to handle the estate) if the injured person died | § 627.727(6)(a) |
| How | Written notice of the proposed settlement by certified or registered mail to every UIM insurer that covers you | § 627.727(6)(a) |
| Insurer’s deadline | 30 days after it receives the notice | § 627.727(6)(a), (b) |
| If the insurer refuses | It must pay you the amount of the written offer within those 30 days | § 627.727(6)(b) |
| Credit to the insurer | The at-fault driver’s full liability limits, even if you settle for less | § 627.727(6)(c) |
| Settled without notice | Presumed harm to the insurer; you must prove there was none | Progressive Am. Ins. Co. v. Heimler (Fla. 4th DCA 2026) |
| Deadline to sue your insurer | 5 years from the date of the accident | § 95.11(2)(b); Woodall v. Travelers Indem. Co. (Fla. 1997) |
Key Terms
- Underinsured motorist (UIM) coverage: the part of your auto policy that pays when the at-fault driver’s bodily injury liability limits are less than your total damages (§ 627.727(3)(b)).
- UIM carrier: the insurance company whose policy provides your UIM coverage. More than one carrier can cover you.
- Consent to settle: your UIM carrier’s approval of a settlement with the at-fault driver and that driver’s insurer. The statute calls it “authorization of the settlement” (§ 627.727(6)(a)).
- Release: the signed paper that ends your claim against the at-fault driver and that driver’s insurer.
- Subrogation: the insurer’s right to sue the at-fault driver to get back what it paid you.
- Prejudice: harm to the insurer’s ability to recover from the at-fault driver.
What Is Underinsured Motorist Coverage?
Underinsured motorist (UIM) coverage is the part of your auto policy that pays you when the driver who hurt you has insurance, but too little to cover your injuries. In Florida it is part of uninsured motorist coverage, which pays when the driver has no insurance at all. The law treats a driver with too little insurance the same way: a vehicle counts as uninsured when its insurer “has provided limits of bodily injury liability for its insured which are less than the total damages sustained by the person legally entitled to recover damages” (§ 627.727(3)(b)).
A Florida auto policy that includes bodily injury liability coverage must also include uninsured motorist coverage, unless a named insured rejected it or chose lower limits in writing (§ 627.727(1)). A named insured is a person listed by name as a policyholder on the declarations page. Florida law does not require a policy with personal injury protection (PIP) and property damage coverage alone to include it. Coverage can also come from a policy held by a relative you live with, depending on how that policy defines who is insured, so check every policy in your household.
Florida Statute 627.727(6): Notifying Your UIM Carrier Before You Settle
The rule is in § 627.727(6)(a):
“If an injured person or, in the case of death, the personal representative agrees to settle a claim with a liability insurer and its insured, and such settlement would not fully satisfy the claim for personal injuries or wrongful death so as to create an underinsured motorist claim, then written notice of the proposed settlement must be submitted by certified or registered mail to all underinsured motorist insurers that provide coverage.”
The notice describes a proposed settlement, so it goes out before you sign anything. It goes to every UIM insurer (also called a UIM carrier) that covers you, which can mean more than one company. And it must go by certified or registered mail, so keep the mailing receipt and the return receipt if you request one.
What the Insurer Can Do in the 30 Days
The UIM insurer “then has a period of 30 days after receipt thereof to consider authorization of the settlement or retention of subrogation rights” (§ 627.727(6)(a)). Subrogation is the insurer’s right to step into your shoes and sue the at-fault driver for what it pays you. The clock runs from the date the insurer receives the notice, not the date you mail it.
- The insurer approves, or does not respond as the statute requires: you “may proceed to execute a full release in favor of the underinsured motorist’s liability insurer and its insured and finalize the proposed settlement without prejudice to any underinsured motorist claim” (§ 627.727(6)(a)).
- The insurer refuses permission to settle: to keep its right to sue the at-fault driver, it “must, within 30 days after receipt of the notice of the proposed settlement, pay to the injured party the amount of the written offer from the underinsured motorist’s liability insurer” (§ 627.727(6)(b)). It can pursue the at-fault driver for that money after your UIM claim is finally resolved.
If the insurer refuses but does not pay you the offer amount within the 30 days, you may still sign the release (§ 627.727(6)(a), (b)).
The 30-day timeline
| Step | What happens | Law |
|---|---|---|
| Written offer from the at-fault driver’s insurer | Do not sign the release yet | § 627.727(6)(a) |
| You mail notice | Certified or registered mail to every UIM insurer; keep the receipt | § 627.727(6)(a) |
| Insurer receives notice | The 30 days start on this date, shown on the return receipt or tracking record | § 627.727(6)(a) |
| Within 30 days after receipt | The insurer approves, or refuses and pays you the offer amount | § 627.727(6)(a), (b) |
| After approval, or 30 days with no payment | You may sign a full release and keep your UIM claim | § 627.727(6)(a) |
| Within 5 years of the accident | Deadline to sue your UIM insurer | § 95.11(2)(b) |
What Happens If Your Insurer Pays You the Offer Amount?
An insurer that refuses permission must pay you the amount of the at-fault driver’s written offer, and “Thereafter, upon final resolution of the underinsured motorist claim, the underinsured motorist insurer is entitled to seek subrogation against the underinsured motorist and the liability insurer for the amounts paid to the injured party” (§ 627.727(6)(b)). Your insurer puts its money in place of the at-fault driver’s settlement and keeps the right to sue that driver later.
- Your UIM claim continues against your insurer for damages above the at-fault driver’s liability limits, up to your UIM limits.
- Your insurer must wait. The Florida Supreme Court has held that the insurer cannot bring its subrogation claim against the at-fault driver until your UIM claim is finally resolved (Metropolitan Cas. Ins. Co. v. Tepper, 2 So. 3d 209 (Fla. 2009)).
- Your claim against the at-fault driver is not erased. An appeals court in the same case held that taking the insurer’s payment did not fully end the injured person’s claim against the at-fault driver. The injured person could drop that driver from the suit by giving up damages above the offer amount plus the UIM limits (Metropolitan Cas. Ins. Co. v. Tepper, 969 So. 2d 403 (Fla. 5th DCA 2007)).
- Your UIM limits stay the same. The statute says “any payment or credit under this subsection” does not reduce “the total amount of underinsured motorist coverage available to the injured party” (§ 627.727(6)(c)).
Some policies require you to name the at-fault driver in a lawsuit along with your insurer. Read the policy before you decide whom to sue.
What Should the Notice Include?
Florida law does not set a form or list of contents. It requires “written notice of the proposed settlement,” sent by certified or registered mail to every UIM insurer (§ 627.727(6)(a)). An insurer that refuses must pay “the amount of the written offer” within 30 days, so give it everything it needs to decide in that time:
- Your name, policy number, and claim number, and the date of the accident.
- The at-fault driver’s name, that driver’s insurer, and the liability claim number.
- The amount of the written offer, with a copy of the offer letter.
- A copy of the proposed release.
- The sworn statement of the at-fault driver’s limits, if you have it (§ 627.4137(1)).
- A statement that the offer would not fully pay your damages and that you intend to make a UIM claim.
- A request for a written decision within the 30 days the statute allows.
Your policy may add requirements, so check its terms on settlements before you send the notice. If more than one insurer covers you, send a separate notice to each one. Each insurer’s 30 days run from the date it receives its notice. Wait until every insurer has approved in writing or its 30 days have passed, and if any insurer pays you the offer amount, talk to a lawyer before you sign anything.
Sample Notice of Proposed Settlement to a UIM Carrier
This sample covers what the statute asks for. It is general information; adapt it to your policy and your facts, ideally with a lawyer.
[Date]
SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, No. [number]
[UIM insurer name and claims address]Re: Notice of Proposed Settlement under Fla. Stat. § 627.727(6)
Insured: [name] | Policy No.: [number] | Claim No.: [number]
Date of accident: [date]
At-fault driver: [name] | Liability insurer: [name] | Liability claim No.: [number][Liability insurer] has offered [amount] to settle my bodily injury claim against [at-fault driver]. I propose to accept this offer and ask you to authorize the settlement. The offer would not fully pay my damages, and I intend to make an underinsured motorist claim under the policy listed above.
Enclosed are a copy of the written settlement offer, the proposed release[, and the liability insurer’s sworn statement of its policy limits under Fla. Stat. § 627.4137].
Under Fla. Stat. § 627.727(6), you have 30 days after you receive this notice to authorize the settlement or, to keep your subrogation rights, to pay me the amount of the written offer. Please send your decision in writing.
[Signature]
[Printed name, address, phone]
Why Settling for Less Than the Driver’s Limits Can Cost You
Your UIM insurer gets credit for the at-fault driver’s full liability limits. Under § 627.727(6)(c), it “is entitled to a credit against total damages in the amount of the limits of the underinsured motorist’s liability policy in all cases to which this subsection applies, even if the settlement” is “for less than the underinsured motorist’s full liability policy limits.” The same paragraph says nothing in it “reduces or affects the total amount of underinsured motorist coverage available to the injured party.”
For example, if the at-fault driver has a $25,000 policy and you settle with that insurer for $15,000, your UIM claim is still figured as if you had received $25,000. You absorb the $10,000 gap. Before you accept less than the driver’s limits, find out what the limits are. The driver’s insurer must give you a sworn statement of its limits, including any excess or umbrella coverage, within 30 days of your written request (§ 627.4137(1)).
The first consultation is free and confidential. Call (305) 774-7000.
Settled Without UIM Consent: What If I Already Signed a Release?
Your underinsured motorist claim can survive, but you carry the burden of saving it. In Progressive American Insurance Co. v. Heimler, No. 4D2025-1854 (Fla. 4th DCA Sept. 9, 2026), the injured person settled with the at-fault driver’s insurer, which had a $10,000 policy limit. The settlement was made without the consent of the underinsured motorist carrier, which provided $500,000 in coverage. The Fourth District Court of Appeal explained the rule Florida courts apply: “an unauthorized settlement will bar recovery by the insured if the insurer is prejudiced by the settlement, and that a rebuttable presumption exists that such settlement does prejudice the insurer.” It added that “the burden is on the insured to show an absence of prejudice.” The court starts by assuming the settlement harmed the insurer (lawyers call this harm “prejudice”), and you must bring proof that it did not.
A tortfeasor is the person whose careless act caused the injury, here the at-fault driver. The court described the test as “whether, if the insured had complied with the policy, a reasonably prudent insurer would have approved the decision, or instead rejected the settlement and pursued a damages claim against the tortfeasor (expecting to come out financially ahead thereby).” In Heimler, the trial court found the at-fault driver was probably insolvent, meaning unable to pay her debts. A judgment against her would have been worth little, and the appeals court affirmed that ruling. The trial court had set a separate, second trial on fault and damages, to be held if needed. The Fourth District’s opinion also said a trial judge may consider whether the at-fault driver’s assets were “easily collectable or instead subject to homestead protection or bankruptcy exemption.” The Fourth District denied Progressive’s motion for rehearing on November 4, 2026.
Earlier Florida appeals court decisions have reached different results. In Muth v. AIU Insurance Co., 982 So. 2d 749 (Fla. 4th DCA 2008), the injured person lost because she did not bring timely evidence to overcome the presumption. In Gray v. State Farm, 734 So. 2d 1102 (Fla. 2d DCA 1999), the court reversed a summary judgment for the insurer. The facts were in dispute on two points: whether the insurer was harmed, and whether it gave up its rights by attending the mediation, knowing about the settlement, and not objecting. If you already signed a release, gather proof of the at-fault driver’s finances and of what your insurer knew, and talk to a lawyer quickly.
Does This Apply If the Other Driver Had No Insurance at All?
Section 627.727(6) covers a settlement “with a liability insurer and its insured.” If the at-fault driver had no insurance, there is no liability insurer to settle with, and the Florida Supreme Court has held the same for a self-insured party, such as a government agency, because “the tortfeasor must have a liability insurer” to be underinsured (Young v. Progressive Se. Ins. Co., 753 So. 2d 80 (Fla. 2000)). In those cases § 627.727(6) does not apply, but your policy’s terms on settling and releasing claims still do. Read the policy and tell your insurer in writing before you sign any release with the driver or anyone else involved in the crash.
What If My UIM Insurer Will Not Pay?
You can sue your insurer for breach of the policy within 5 years of the accident (§ 95.11(2)(b)). Florida law also allows a separate bad faith claim against an insurer for “Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so” (§ 624.155(1)(b)1.). Before filing that claim, you must give the Department of Financial Services and the insurer 60 days’ written notice on the department’s form, called a civil remedy notice (§ 624.155(3)(a), (b)). “No action shall lie” if the damages are paid or the violation is corrected within 60 days after the insurer receives the notice (§ 624.155(3)(c)). The Florida Supreme Court has held that a bad faith claim against an uninsured or underinsured motorist insurer does not arise until the at-fault driver’s liability and the full extent of your damages are decided (Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289 (Fla. 1991)). In a bad faith action against an uninsured or underinsured motorist insurer, the recoverable damages “shall include the total amount of the claimant’s damages, including the amount in excess of the policy limits” (§ 627.727(9)). Negligence alone is not bad faith (§ 624.155(5)(a)).
Other Florida Rules for Underinsured Motorist Claims
- Pain and suffering: the insurer’s liability “does not include damages in tort for pain, suffering, mental anguish, and inconvenience” unless the injury meets the permanent injury threshold in § 627.737(2) (§ 627.727(7)). See our post on how much a car accident case is worth in Florida.
- No double payment: the coverage is “over and above, but shall not duplicate,” benefits such as PIP and the at-fault driver’s liability coverage (§ 627.727(1)).
- Stacking: stacking means adding together the UIM limits for each car on your policy. Florida lets insurers sell non-stacking coverage if the named insured accepts it, in language approved by state regulators (§ 627.727(8)). Your declarations page shows which kind you have.
- Deadline: a claim against your UIM insurer is a contract claim with a 5-year limit (§ 95.11(2)(b)). The Florida Supreme Court has held that the clock for an underinsured motorist claim starts on the date of the accident (Woodall v. Travelers Indem. Co., 699 So. 2d 1361 (Fla. 1997)). The negligence claim against the at-fault driver has a 2-year limit for crashes after March 24, 2023 (§ 95.11(5)(a)), so the two deadlines run on separate clocks.
How to File an Underinsured Motorist Claim in Florida
- Find every policy that may cover you, including your auto policy, policies held by relatives you live with, and the policy on any car you were riding in. Report the claim in writing to each insurer and follow the notice terms in each policy.
- Get the at-fault driver’s limits in writing. Ask that driver’s insurer for a sworn statement of all liability coverage, including excess and umbrella policies (§ 627.4137(1)).
- Collect proof of your damages: medical records and bills, wage records, photographs, and the crash report.
- Send notice of any proposed settlement to every UIM insurer by certified or registered mail before you sign a release (§ 627.727(6)(a)). Keep the mail receipts.
- Wait 30 days from the date each insurer receives the notice, unless every insurer approves sooner in writing. Then sign the release if every insurer approved or did not pay you the offer amount (§ 627.727(6)(a), (b)).
- Present your UIM claim with your records and a written demand. Your policy may require a sworn statement, a medical exam by a doctor the insurer picks, and signed records releases, so read its duties section.
- Keep both deadlines in view: 2 years to sue the at-fault driver for a crash after March 24, 2023 (§ 95.11(5)(a)), and 5 years from the accident to sue your UIM insurer (§ 95.11(2)(b)). Negotiating does not stop either one.
For more, see our guides on what to do after a car accident in Florida, signs an insurance company is lowballing your claim, and our insurance disputes practice page, and our Miami car accident lawyer and personal injury pages.
This post reflects the 2026 Florida Statutes and Florida appellate decisions as of November 2026. It is general information, not a prediction of any result.
Sources: Fla. Stat. §§ 95.11, 624.155, 627.4137, 627.727, 627.737 (2026); Progressive Am. Ins. Co. v. Heimler, No. 4D2025-1854 (Fla. 4th DCA Sept. 9, 2026); Muth v. AIU Ins. Co., 982 So. 2d 749 (Fla. 4th DCA 2008); Gray v. State Farm Mut. Auto. Ins. Co., 734 So. 2d 1102 (Fla. 2d DCA 1999); Woodall v. Travelers Indem. Co., 699 So. 2d 1361 (Fla. 1997); Metropolitan Cas. Ins. Co. v. Tepper, 2 So. 3d 209 (Fla. 2009), and 969 So. 2d 403 (Fla. 5th DCA 2007); Young v. Progressive Se. Ins. Co., 753 So. 2d 80 (Fla. 2000); Blanchard v. State Farm Mut. Auto. Ins. Co., 575 So. 2d 1289 (Fla. 1991).
Quick Answers
Do I have to tell my insurance company before I settle a car accident claim in Florida?
Yes, if the settlement will not fully pay your injury claim and you have underinsured motorist coverage. Florida law requires written notice of the proposed settlement by certified or registered mail to every UIM insurer that covers you, before you sign a release.
How long does my insurance company have to respond?
Under Florida law, an underinsured motorist (UIM) insurer has 30 days after it receives the notice. If it approves, or does not pay you the offer amount within those 30 days, you can sign the release and keep your UIM claim.
Can my insurance company stop me from settling?
Not without paying. Under Florida law, to refuse permission, the underinsured motorist (UIM) insurer must pay you the amount of the written offer within 30 days after receiving the notice.
What happens if I settle without telling my underinsured motorist insurer?
Florida appeals courts presume the insurer was harmed, and you must prove it was not. Claims have survived when the at-fault driver was insolvent or judgment-proof, and claims have been lost when the injured person could not prove the insurer was unharmed.
Does settling for less than the other driver’s policy limits reduce my underinsured motorist claim?
It reduces what you collect. Your underinsured motorist (UIM) insurer gets credit for the at-fault driver’s full policy limits, even if you settled for less, so you absorb the difference.
Does the 30 days start when I mail the notice or when my insurer receives it?
When the insurer receives it. Florida law gives an underinsured motorist (UIM) insurer 30 days “after receipt” of the notice. Keep the return receipt or tracking record that shows the delivery date.
Does my insurer’s silence count as consent to settle?
It has the same effect, if your notice was proper. Under Florida law, if the underinsured motorist (UIM) insurer neither approves the settlement nor pays you the offer amount within 30 days after it receives the notice, you may sign the release and keep your UIM claim. Ask for the approval in writing anyway.
Do I need to notify my UIM carrier if the other driver’s insurer offers its full policy limits?
Yes. In Florida, the notice rule applies whenever the settlement would not fully pay your injury claim, whether the offer is the full limits or less.
What should the notice to my UIM carrier include?
Florida law requires written notice of the proposed settlement, sent by certified or registered mail, and sets no form. Include the offer amount, the at-fault driver and that driver’s insurer, your policy and claim numbers, and copies of the written offer, the proposed release, and the sworn limits statement, so the insurer can decide within the 30 days.
Can I still make a UIM claim after I settle with the at-fault driver?
Yes, if you sent notice and the insurer approved or did not pay you the offer amount within 30 days. If you settled without notice, Florida appeals courts presume the insurer was harmed, and you must prove it was not.
What happens if my UIM insurer pays me the settlement amount instead?
The insurer takes the place of the at-fault driver’s settlement and keeps the right to sue that driver after your underinsured motorist (UIM) claim is finally resolved. Your UIM claim continues, and your UIM limits are not reduced by the payment.
What is underinsured motorist coverage in Florida?
Underinsured motorist (UIM) coverage pays you when the at-fault driver’s bodily injury liability limits are less than your total damages. In Florida it is part of uninsured motorist coverage. A policy with bodily injury liability coverage must include it unless a policyholder named on the policy rejected it or chose lower limits in writing.
How long do I have to file an underinsured motorist claim in Florida?
A claim against your underinsured motorist (UIM) insurer has a 5-year limit counted from the date of the accident. The negligence claim against the at-fault driver has a 2-year limit for crashes after March 24, 2023.
Do I need to notify my insurer if the other driver had no insurance?
The statutory notice rule covers settlements with a liability insurer. If the at-fault driver had no insurance, your policy’s terms on settling still apply, so tell your insurer in writing before you sign any release.
The first consultation is free and confidential, with no obligation to retain.
Last updated: November 14, 2026.