Most drivers know they are legally required to carry liability insurance in California. Yet many do not realize that liability insurance only helps when you are at fault. If someone else causes a crash and lacks proper insurance or their policy limits are too low, you may struggle to recover compensation for your injuries and losses. That is where Uninsured and Underinsured Motorist coverage comes in.
Why UM and UIM Coverage Matters
There are millions of drivers who operate without adequate insurance. Even when an at fault driver is insured, they often carry only the minimum limits, which may not cover all the harm they cause. With UM and UIM coverage on your own policy, you can recover for damages even when the other driver fails to provide enough compensation.
You should never rely solely on health insurance or assume that liability insurance will fully cover your medical bills and losses. UM and UIM coverage fills that gap and protects you, your family, and your passengers.
How UM and UIM Coverage Works
Uninsured Motorist Coverage applies when the other driver has no insurance. You can make this claim through your own insurer up to your UM limits.
Underinsured Motorist Coverage applies when the at fault driver’s coverage is insufficient. If their liability limits are below your total losses, your UM or UIM coverage can cover the shortfall.
For example, if your damages total 250,000 dollars but the at fault driver only has 15,000 dollars in liability coverage, your UM or UIM coverage would then step in to cover the remaining 235,000 dollars up to your own policy limits.
Making a UM or UIM claim does not count against your insurance record or raise your premiums because the fault lies with the other driver.
How Much Coverage Should You Carry
It is wise to carry as much UM and UIM coverage as you can afford. The premium increase is usually modest compared to the financial protection it provides. For many drivers, increasing coverage to 250,000 dollars costs only a small amount more per month. If you have significant assets, consider adding an umbrella or excess policy to extend your coverage further.
Make sure that any additional or excess policies increase your UM and UIM limits along with your liability coverage, since insurers do not always adjust them automatically.
Tips and Precautions
Review your declarations page to confirm how much UM and UIM coverage you carry
Do not assume minimum limits are sufficient
Seek legal advice before speaking to insurers to protect your rights
File any personal injury action within two years of the accident in California, or sooner if government entities are involved
At Hillstone Law we help clients ensure they have proper insurance protection and assist those injured by uninsured or underinsured drivers. If you have been in a crash and the other driver lacks sufficient coverage, contact Hillstone Law. We can guide you through the process and help you pursue the full compensation you deserve.
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Disclaimer: The material provided in these blogs is for general informational purposes only and should not be considered legal advice. Reading these posts does not create, and is not intended to create, an attorney-client relationship with Hillstone Law. Our intent is to share knowledge, raise awareness, and provide helpful resources to the public; however, Hillstone Law makes no warranties or guarantees about the accuracy, completeness, or reliability of the information provided, and expressly disclaims liability for any actions taken in reliance on it. The photos used in these posts are for illustrative purposes only and do not depict actual clients, individuals, or incidents unless expressly stated. If you or a loved one has been injured in an accident, please contact Hillstone Law at (855) 691-1691. Our attorneys are available to answer your legal questions and help you understand your rights.
