My own carrier (Progressive) is offering $4,200 on a UM bodily injury claim after a hit and run that gave me a torn labrum and 6 months of PT - is this really how UM works?

Going to try to keep this short. October 2025 i was rear-ended at a stoplight on Powell in Portland by a driver who took off before anyone could get plates. Two witnesses but neither could read the tag. Police filed a hit and run report. My own Progressive policy has $100,000 in uninsured motorist bodily injury coverage which i specifically paid extra for because Portland has a ton of uninsured drivers.

Injuries: torn labrum in my right shoulder, confirmed on MRI 3 weeks after the crash. ER visit, ortho follow-up, 6 months of PT (twice a week), and an arthroscopic repair scheduled for next month. Total medical billed so far is $38,400 with another $24,000-30,000 estimated for the surgery and post-op PT. Wage loss is around $11,200 because i had to drop hours at my second job.

Progressive's first offer last week was $4,200 total. The adjuster told me they "value the claim using their internal severity matrix" and pointed me to a line in the policy about how UM claims are evaluated "as if the uninsured motorist were the defendant in a hypothetical lawsuit." Translation: they get to be both my insurance company and the opposing party at the same time. Anyone been through this? Is the $4,200 a real opening offer or is it just a screen to see if i fold? My understanding was that my own carrier owes me good faith but the way they are operating it feels exactly like dealing with a stranger's insurance.