Uninsured and Underinsured Motorist Claims: How to Recover Damages

Published: April 27, 2025 | Last Reviewed: September 10, 2026

Learning that the driver who injured you has no insurance—or not enough insurance—can add financial uncertainty to an already difficult recovery. It does not necessarily mean you are left without options.

In Alberta, compensation may be available through the at-fault driver’s insurance, Section B accident benefits, the Motor Vehicle Accident Claims Program (MVAC), or optional SEF 44 Family Protection coverage. The right approach depends on the circumstances of the collision and the insurance available.

These claims have different eligibility rules, notice requirements and deadlines. The process described below applies to collisions occurring before January 1, 2027, when Alberta’s Care-First automobile insurance system is scheduled to take effect.

For help understanding your options, contact Preszler Injury Lawyers for a free consultation.

Key Takeaways

• An uninsured driver does not necessarily leave you without compensation. MVAC may provide a recovery for bodily injuries caused by an uninsured or unidentified driver, subject to its eligibility requirements. It does not cover property damage.
• Insufficient insurance is different from no insurance. An underinsured-driver claim is not ordinarily an MVAC claim. Any applicable SEF 44 Family Protection coverage should be reviewed.
• Accident benefits are a separate source of support. Section B benefits may help with eligible injury-related expenses regardless of fault, without waiting for an MVAC or SEF 44 claim to resolve.
• Early notice matters. Hit-and-run claims generally require notice to MVAC within 90 days. Insurers have separate requirements, and notifying them does not replace the need to meet a lawsuit deadline.

What Is Alberta’s Minimum Required Auto Insurance?

Alberta requires basic automobile insurance, including at least $200,000 in third-party liability coverage and accident benefits.

These coverages serve different purposes. Third-party liability insurance responds to covered claims by people injured or whose property is damaged through the insured person’s fault. Accident benefits provide eligible injury-related benefits to insured people, regardless of who caused the collision.

Accident benefits do not cover repairs to your vehicle or guarantee its replacement value. Vehicle-damage claims are dealt with separately under the applicable property-damage coverage.

Mandatory insurance requirements also do not guarantee that every driver has valid coverage—or enough coverage to compensate everyone injured in a serious collision.

What Counts as an Uninsured or Underinsured Driver in Alberta?

An uninsured driver has no valid automobile insurance at the time of the collision. A policy may have expired, lapsed or been cancelled.

An underinsured driver has liability insurance, but the available coverage is insufficient to compensate injured people fully for their losses. This may happen when a driver carries only the minimum coverage, several people are seriously injured in the same collision, or the combined injury claims exceed the insurance available from those responsible. A collision in a jurisdiction with lower minimum insurance requirements can also leave a shortfall.

The distinction matters. MVAC is generally intended for injuries caused by uninsured or unidentified drivers, not to make up a shortfall in an insured driver’s liability coverage. An underinsured claim instead requires a review of the responsible parties’ insurance and any applicable SEF 44 coverage.

When Does Uninsured or Underinsured Coverage Apply?

MVAC and SEF 44 serve different purposes. Eligibility for one does not automatically establish entitlement under the other.

When Does MVAC Apply?

MVAC may provide a way to recover compensation for bodily injuries caused by an uninsured driver or a driver who cannot be identified.

According to the Government of Alberta, eligibility generally requires that:

You suffered bodily injuries in a motor vehicle accident;

The accident occurred in Alberta;

You are an Alberta resident, or a resident of another jurisdiction whose similar program may allow you to qualify;

An uninsured or unidentified driver was responsible for the accident; and

No other insured party was responsible for your injuries.

MVAC is a last-resort program, not a substitute for inadequate liability insurance. Other potentially responsible parties and available insurance must be investigated before eligibility and payment can be determined. MVAC does not cover damage to your vehicle or other property.

When Does SEF 44 Coverage Apply?

SEF 44 Family Protection coverage is an optional endorsement that may provide additional compensation when an eligible insured person’s damages exceed the liability insurance available from those responsible.

For an underinsured-driver claim, the endorsement must form part of an applicable policy, the injured person must qualify for coverage, and the relevant liability insurance limits must be lower than the SEF 44 limit. Other available sources of compensation must also be taken into account.

The amount payable depends on the endorsement’s wording, its limit and the claimant’s compensable losses. Generally, the insurer’s maximum liability is the difference between the SEF 44 limit and the combined liability limits of the underinsured driver and anyone jointly responsible, subject to other deductions and policy conditions.

Notify the SEF 44 insurer promptly and before settling the claim against the at-fault parties. Do not assume that a settlement will bind that insurer. Court findings on fault or damages are not binding unless the insurer had a reasonable opportunity to participate as a party.

What Role Does Your Own Automobile Insurer Play?

Your own insurer may have more than one role after a collision. It can address a claim for Section B accident benefits and confirm whether your policy includes SEF 44 Family Protection coverage.

Under the pre-2027 system, eligible claimants may receive Section B benefits regardless of fault, including up to $50,000 for reasonable and necessary medical and rehabilitation expenses incurred within two years of the collision, subject to the applicable coverage requirements. Disability, death and funeral benefits may also be available.

A Section B claim is separate from an MVAC or SEF 44 claim. You do not need to wait for the other claims to settle before applying for accident benefits.

When reporting the collision, request the accident-benefit application forms, a complete copy of your policy and endorsements, and confirmation of the relevant coverage limits and notice requirements. Ask specifically whether SEF 44 coverage may apply.

Do not wait until the at-fault driver’s insurance has been exhausted to raise a potential SEF 44 claim. Early notice gives the insurer an opportunity to investigate and participate before the underlying claim is resolved.

Vehicle-damage claims are handled separately through Direct Compensation for Property Damage (DCPD), collision coverage or another applicable part of the policy, depending on the circumstances and coverage in place. For more information, see our guide to Direct Compensation for Property Damage in Alberta.

How Do You Prove the Other Driver Was Uninsured or Underinsured?

Establishing the other driver’s insurance status begins with gathering reliable information. If it is safe and you are physically able, record the names, driver’s licence numbers, licence plates, insurers and policy numbers of everyone involved. Obtain witness contact information and preserve photographs or video of the vehicles, collision scene and visible injuries.

If police attend, request a copy of the collision report afterward. It may identify the drivers, vehicles and reported insurance coverage. However, an insurance card or policy number does not establish that coverage was valid on the collision date. The policy’s status and limits may need to be confirmed with the insurer or through the claims process.

An underinsured claim also requires evidence of your losses. Medical records, income information, treatment expenses and other supporting documents help establish whether the value of the claim exceeds the insurance available from those responsible.

Notice Requirements and Legal Deadlines

If you learn that the at-fault driver was uninsured, notify your insurer and contact MVAC promptly.

For a hit-and-run collision involving an unidentified driver, notice to MVAC is generally required within 90 days of the accident. A court may permit late notice in some circumstances, but you should not assume an extension will be available. Missing the deadline can jeopardize your claim.

The deadline for starting a lawsuit is separate. A lawsuit generally must be commenced within two years. Under section 3 of Alberta’s Limitations Act, that period begins when you knew, or ought to have known, that an injury had occurred, that it was attributable to the defendant’s conduct, and that it warranted bringing a proceeding.

Exceptions and different rules may apply. Confirm the deadlines for each potential claim rather than assuming that reporting the collision protects all of your rights.

How Will Alberta’s 2027 Care-First System Affect These Claims?

Alberta’s Care-First automobile insurance system is scheduled to begin on January 1, 2027. Under the new framework, compensation will generally shift toward accident benefits, and the ability to sue an at-fault driver for injuries will be significantly restricted, subject to specified exceptions.

For collisions occurring on or after that date, the available benefits, any right to sue, and the role of MVAC or SEF 44 must be assessed under the legislation, regulations and policy wording applicable to the new system. The claims process outlined above should not be assumed to apply unchanged.

Claims arising from collisions before January 1, 2027 remain subject to the rules applicable to those accidents.

For more information, see our guide: Alberta Is Going to a No-Fault System: What This Means for Albertans.

Working With a Lawyer After an Uninsured or Underinsured Accident

Identifying the available compensation may require more than checking the other driver’s insurance card. A lawyer can review the relevant policies, investigate who may be responsible, assess MVAC eligibility and help protect a potential SEF 44 claim. Legal advice can also help ensure that the proper parties are included in a lawsuit and that notice requirements and deadlines are addressed.

If you were injured by an uninsured, unidentified or underinsured driver, contact Preszler Injury Lawyers to discuss your options. Call 1-888-494-8191 or contact us online to arrange a free consultation.

We’re here to help.