Kansas Underinsured Motorist Coverage: SB 147 Did Not Pass — What Drivers Should Know

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Kansas did not change its underinsured motorist (UIM) rules in 2026. Senate Bill 147, which would have barred insurers from reducing UIM coverage because of the at-fault driver’s liability limit or payment, got a Senate committee hearing on February 10, 2026, and the Kansas Legislature’s bill page now lists it as “Died.” K.S.A. 40-284 still governs your coverage as written.

Did Kansas change underinsured motorist coverage in 2026?

No. SB 147 was introduced on February 3, 2025, at the request of the Kansas Trial Lawyers Association. It would have amended K.S.A. 40-284 to add one key rule: UIM coverage could not be reduced because of any liability limit or payment by or on behalf of the owner or operator of the other vehicle or any third party. Critics of the current rule often call this issue the UIM “offset.”

The Senate Committee on Financial Institutions and Insurance heard the bill on February 10, 2026. Supporters included the sponsoring trial lawyers’ group, injury attorneys and private citizens. Insurer trade groups, including the National Association of Mutual Insurance Companies and the American Property Casualty Insurance Association, testified in opposition. The Legislature’s bill page now lists the bill as Died.

How does Kansas underinsured motorist coverage work today?

K.S.A. 40-284 requires auto liability policies delivered or issued in Kansas for vehicles registered or principally garaged in the state to include uninsured motorist (UM) coverage with limits equal to the policy’s bodily injury liability limits. That UM coverage must include a UIM provision with limits equal to the UM limits. The statute extends UIM coverage only to the extent it exceeds the bodily injury limits carried by the other driver.

Kansas courts have applied that wording as a threshold. In Halsey v. Farm Bureau Mutual Insurance Co. (2003), the Kansas Supreme Court held that UIM coverage does not apply when it equals or does not exceed the limits of the policy covering the other vehicle. In practice, if you carry $50,000 in UIM coverage and the at-fault driver also carries $50,000 in bodily injury liability, your UIM limit does not exceed theirs and UIM generally does not apply. If the at-fault driver carries $25,000, your $50,000 limit does exceed theirs, so UIM coverage can apply. How much your insurer pays then depends on your damages and your policy.

The idea has come up before. A similar bill, House Bill 2707, was introduced in the 2024 session under the title “UIM transparency in insurance act,” also at the request of the Kansas Trial Lawyers Association.

What should Kansas drivers do now?

Nothing about your coverage changed because of SB 147, but the rules that do apply are easy to overlook. Start with your declarations page, then check a few specific items.

Frequently Asked Questions About Kansas UIM Coverage

Did Kansas pass a law in 2026 ending the UIM offset?

No. Senate Bill 147, which would have barred reductions of UIM coverage because of the at-fault driver’s liability limit or payment, had a Senate committee hearing on February 10, 2026. The Kansas Legislature’s bill page lists it as Died as of October 11, 2026, so it did not change K.S.A. 40-284.

Does Kansas UIM coverage pay if the at-fault driver has the same limits as mine?

Generally not. K.S.A. 40-284(b) makes UIM coverage available only to the extent it exceeds the other driver’s bodily injury limits, and the Kansas Supreme Court held in Halsey v. Farm Bureau Mutual Insurance Co. (2003) that UIM coverage does not apply when its limits equal or do not exceed the limits of the other driver’s policy. How your per-person and per-accident limits compare with theirs can change the result, so ask your insurer or a Kansas attorney about your specific claim.

Do I have to notify my insurer before settling with an underinsured driver in Kansas?

Yes. If you reach a tentative agreement to settle for the at-fault driver’s liability limits, K.S.A. 40-284(f) requires you to give your UIM insurer written notice by certified mail, with documentation of your losses. The insurer then has 60 days to substitute its own payment for the settlement amount. A Kansas Court of Appeals decision, Dalke v. Allstate Insurance Co. (1997), found that settling and releasing the at-fault driver without notice forfeited the right to UIM recovery.

Can I reject underinsured motorist coverage in Kansas?

Only in part. K.S.A. 40-284(c) lets the named insured reject in writing the uninsured motorist coverage that is above the minimum limits in K.S.A. 40-3107, which are $25,000 per person and $50,000 per accident for bodily injury. UIM limits must equal UM limits.

The Bottom Line for Kansas Drivers

Kansas drivers did not gain new underinsured motorist rights in 2026. SB 147 would have changed how UIM coverage interacts with the at-fault driver’s limits, but it died, and K.S.A. 40-284 still applies as written. Under that statute, UIM coverage reaches only as far as your limits exceed the other driver’s.

That makes your limits and your paperwork the practical priorities. Confirm your UM and UIM limits, check whether you ever rejected higher limits in writing, and give your insurer proper notice before accepting any liability-limits settlement. For a specific claim, a Kansas attorney or your insurer can tell you how the statute applies.