Underinsured Motorist Coverage: Why It Matters in California

Many drivers on California roads carry only the minimum liability insurance the law requires. Since January 1, 2025, those minimums are $30,000 for injury to one person, $60,000 for injuries to more than one person, and $15,000 for property damage. A single hospital stay can exceed those limits.

What Underinsured Motorist Coverage Does

Underinsured motorist (UIM) coverage is part of your own auto policy. If the at-fault driver’s insurance is not enough to cover your losses, UIM coverage can pay the difference, up to your policy limits and after accounting for what the other driver’s insurer paid.

Uninsured motorist (UM) coverage works similarly when the other driver has no insurance at all or flees the scene.

How a UIM Claim Works

1. The at-fault driver’s insurer pays, often its full policy limit.
2. You notify your own insurer of the UIM claim and follow the policy’s procedures, which can include getting the insurer’s consent before accepting the other driver’s limits.
3. Your insurer evaluates your total damages. If you cannot agree, California UIM claims typically go to arbitration.

Missing a step in this process can jeopardize the UIM claim, so it pays to have help before accepting the at-fault driver’s policy limits.

Check Your Own Policy

UM and UIM coverage is offered with California auto policies but can be reduced or waived in writing. Look at your declarations page. Many people carry far more liability coverage to protect others than UM/UIM coverage to protect themselves and their families. Increasing UM/UIM limits is often inexpensive relative to the protection it provides.

Your Insurer, Your Adversary?

Even though it is your own policy, your insurer will evaluate a UIM claim critically. John V. Bell knows how insurance companies approach these claims from the inside. If your injuries exceed the other driver’s coverage, call The JVB Law Firm for a free consultation.