California Uninsured And Underinsured Motorist Coverage

In California, every driver is required by law to have insurance. This helps to protect them and the victim in case of a car accident. However, that does not mean that every driver does. The Insurance Research Council estimates that nearly 20 percent of people driving in California have no insurance, making it the seventh highest state in America when it comes to uninsured motorists. People injured by such motorists are at risk of being unable to recover damages for medical bills, lost wages, pain and suffering, and other damages. The California legislature has recognized this reality and passed laws requiring uninsured (UM) and underinsured (UIM) coverage to be offered in every automobile insurance policy.

What Is Uninsured Motorist Coverage?

The California uninsured motorist law protects those who are involved in an accident with an uninsured driver. It does not protect drivers without insurance. Insurance companies are required to offer UM protection, however drivers do not have to obtain it. By definition, an uninsured motorist may be any of the following:

• a driver who does not have any insurance at all;
• a driver who has insurance but it is less than the state-mandated minimum limit of coverage;
• a driver who is involved in a hit-and-run who leaves the scene of the accident without leaving sufficient information to identify who they are.

What Is Underinsured Motorist Coverage?

An underinsured motorist is someone who has insurance as required by law but their policy is insufficient to pay for all of the damage caused by an accident in which they are at fault. Under California law, the bare minimum insurance limits are $15,000 per person per accident, to a total of $30,000 per accident. Minimum property damage coverage must be at least $5,000. When a claim is made by a driver with a UIM policy, benefits apply only after the other driver’s insurance is exhausted and is deducted from the UIM policy holder’s limits.  For example, say a defendant driver has only a $15K insurance policy and you sustain a serious injury.  If you have a UIM policy with a $100K limit you have an additional $85K in coverage.

Coverage of UM And UIM Insurance

UM and UIM coverage applies when a driver purchases “full coverage” from an insurance company. If a driver purchases “bare bones” minimum insurance limits, he or she will also get UM and UIM coverage unless the driver signs a form waiving coverage. Insurance companies are prohibited from offering less coverage and less protection than is required by law. If there is no wavier, the provisions of UM and UIM law are made part of the policy. If a California driver has $100,000 of liability coverage then he or she can get $100,000 of UM and UIM coverage as well. The absolute minimum amount of UM and UIM coverage you can obtain is $15,000 for each injured person and $30,000 for multiple injured people in the same accident. We advise our clients to get cover themselves at least at the amount of their liability coverage.  For example $100K UI and $300K UIM, it would be wise to use those figures. 

It is also important to note that UM and UIM protection is extended to the insured person, not merely to whether or not the insured is an occupant of a particular type of motor vehicle. In other words, UM and UIM coverage protects the insured against uninsured and underinsured motorists wherever and whatever the insured is doing, even while walking or riding a bicycle.

Uninsured and underinsured coverage pays for the policy holder’s medical expenses, lost wages, loss of earning capacity, pain and suffering, disfigurement, rehabilitation costs, and other damages (up to the limits of the policy) that result from an accident. Both UM and UIM apply to the policy holder, his or her passengers, and any other persons (such as family members) named in the policy if injury occurs.

Special Requirements

Hit and run on a car and a pedestrian have special requirements.  First, their needs to be proof of contact.  In the case of a car to car hit and run, it could be matching paint scrapes.  In the case of a person being hit by a car, the eye witness account from a bystander my suffice.  There also needs to be a police report filed within 24 hours, though details depend on the language of your policy.

For further information or help determining your coverage, call our injury attorneys at 310-312-1860.  These matters are time sensitive.  Delaying contact with an attorney could cost you your right to receive the compensation you deserve.