Underinsured vs. Uninsured Motorist

You are protected when the other driver has either no insurance or a low amount. 99% of the policies provide self coverage in those instances where the other person is at fault but their insurance does not exist or doesn’t cover your actual losses. This is called UNINSURED or UNDERINSURED motorist coverage. In California (and most states) you can make a claim on your own policy and it WILL NOT RAISE YOUR RATES. Is this rule in effect because insurance companies are caring and feeling entities. No! There is a law. There was a proposition that voters passed (Prop 103) and that was put into a law, Insurance Code Section 1861.02.

Many people don’t believe that this law can be enforced but it can be and is enforced. Don’t be afraid to make an underinsured or uinsured claim. To help relax you and steer you to taking care of yourself, this blog outlines how UM or UIM coverage works. Remember this important fact – it only pays up to your limits. If you have limits of $ 30,000 and the other person has limits of $30,000 you don’t add them together. It is the highest number that counts. Since you both have $ 30,000 that’s all there is.

If you’ve had an accident and need a lawyer, the Law Office of Daniel Horowitz is a local firm with our office in Lafayette, California (Contra Costa County). We do not charge you on accident cases until we actually recover money for you. So the initial accident consultation is free and all meetings and work is not charged until we recover for you. We emphasize our local presence to be clear that we are not a Los Angeles or out of county firm with a 1-800 number or a small satellite office. Our staff all live in the San Francisco Bay area and we work together in our office in Lafayette (California). (We need to put Lafayette, California to avoid getting calls from Lafayette, Louisiana :]) If you are ready to speak to someone about your case call us at 925-283-1863.

Or you can read on about the types of underinsured or uninsured motorist coverage.

What is Uninsured Motorist Coverage (UM)?

Uninsured motorist coverage steps in when you’re hit by a driver with no insurance at all. It’s an optional add-on to your auto policy, designed to shield you from someone else’s failure to comply with California’s minimum liability law (15/30/5—$15,000 bodily injury per person, $30,000 per accident, $5,000 property damage). UM has two main parts:

• Uninsured Motorist Bodily Injury (UMBI): Covers medical bills, lost wages, and pain and suffering for you and your passengers.
• Uninsured Motorist Property Damage (UMPD): Pays for repairs to your vehicle or other property, with a minimum limit of $3,500 in California.

For example, if an uninsured driver T-bones you on the 101, leaving you with a $20,000 hospital bill and a wrecked car, UMBI could cover your injuries up to your policy limit (say, $50,000), while UMPD handles the car repairs (minus a deductible). You file with your own insurer, who verifies the at-fault driver has no coverage.

What is Underinsured Motorist Coverage (UIM)?

Underinsured motorist coverage, often bundled with UM, kicks in when the at-fault driver has insurance, but their limits are too low to cover your damages. It’s a gap-filler for situations where California’s minimum liability requirements fall short of reality. UIM typically applies only to bodily injury, not property damage, unlike UM.

Picture this: You’re rear-ended on I-5, racking up $25,000 in medical costs. The other driver has the state minimum (15/30/5), so their insurance pays $15,000—leaving you $10,000 short. If your UIM limit is $50,000, it covers that gap, ensuring you’re not stuck with the bill.

Uninsured vs. Underinsured Motorist Coverage in California: What’s the Difference?

 While UM and UIM sound similar, their triggers and scope set them apart:

• Trigger Event: UM applies when the at-fault driver has no insurance. UIM applies when they have some insurance, but not enough.
• Coverage Scope: UM includes both bodily injury (UMBI) and property damage (UMPD). UIM in California typically covers only bodily injury, leaving property damage to your collision coverage or out-of-pocket funds.  You can pay extra to get “full UIM” coverage.
• Claim Process: With UM, your insurer confirms the other driver is uninsured (e.g., via police report or DMV check). With UIM, they calculate the shortfall after the at-fault driver’s insurance pays out its maximum.

 You Need Both UIM & UM Coverage .

California’s 15% uninsured driver rate—among the nation’s highest—makes UM a no-brainer. But UIM is just as critical. The state’s bare-minimum liability (15/30/5) hasn’t kept pace with rising medical and repair costs. A serious injury can easily top $50,000, leaving you exposed even if the other driver is insured. UM protects against the lawbreakers; UIM guards against the legally compliant but underprepared.

We do not know the numbers who have the minimum but a very large number do.  $ 15,000 is the minimum coverage and for any injury involving hospitalization this is a big zero to you.

If you’re budget-conscious, UM alone might suffice—uninsured drivers are a bigger statistical threat. But UIM adds a layer of security for those “in-between” cases, especially in high-cost areas like L.A. or San Francisco. Check your policy: many insurers bundle them, so you might already have both. If not, call your provider (think Allstate, Farmers, or AAA) and tailor your limits to your needs—$15,000 won’t cut it for a major crash.  We believe that there are so many underinsured drivers that not having an UIM policy is a grave mistake.   

 We have had several cases where a person was killed in an accident and both sides had only $ 15,000 in coverage.  In one of those cases the person had a $ 250,000 life insurance policy which helped but in the other we ran an asset search and found nothing we could collect from.  That person seemed out of options.  We were fortunate however that the owner of the car also had insurance.  We were allowed by state law to collect and additional $ 15,000 from the owner as well. 

Hit & Run

Hit & Run

If you are in your car and there is a hit and run accident you can make a claim. (See: Insurance Code section 11580.2(b)).

You are under some time pressure here not due to a statute of limitations but a requirement in the law that you report the accident to the police in 24 hours and to your insurance company in 30 days. In some areas (like Oakland, California) it is hard to get a police response so filing a report can be an issue. Fortunately this is a “squeaky” rule and the case called (California State Auto. Asso. v. Blanford (1970) 4 Cal.App.3d 186, 190 says that the insurance company doesn’t get out of paying you if are late in making the police report unless the insurance company can show that they were hurt by the delay.

There are many other rules and deadlines for making car accident claims.  Some people prefer to settle their own claims but be careful, when you get a call from an insurance adjuster many times they are looking to limit your recovery by gathering facts that undercut your claims for compensation.  We recommend having no contact with the other side’s insurance company and only the basic contacts with your own.  Hiring a lawyer for a personal injury claim usually costs no money until you actually recover.  

Get at Least $ 250,000 in Coverage

We recommend getting $ 250,000 or more in both UIM and UM coverage.   What if you got in an accident and were in a wheelchair the rest of your life? Even $ 250,000 is not enough but at least you have that money to help you. A good personal injury firm will look beyond the policy of the driver of the other car. Bad roads, other cars contributing to the accident, auto design defects must all be scrutinized to see if there are other pockets to get money from. But worst case – provide a bottom line minimum amount by insuring yourself for at least $ 250,000.

If you have been involved in a serious car, motorcycle or truck accident Daniel Horowitz and his personal injury lawyers will look for the maximum insurance coverage to ensure that you receive proper compensation.

We can be reached at (925) 283-1863. When we answer the phone (or call you back if you left a message), a real person who is actually in Lafayette, California will call you. We do not use call services, overseas answering banks or AI to take our calls!