What You Need to Know About Underinsured Motorist Coverage in California

When you're injured in a car accident, the last thing you want to discover is that the at-fault driver doesn’t carry enough insurance to cover your medical bills, lost wages, and other damages. Unfortunately, this scenario is all too common in the Bay Area - and that’s where Underinsured Motorist (UIM) coverage steps in.

 

What Is Underinsured Motorist Coverage?

Underinsured Motorist coverage is an optional add-on to your auto insurance policy that protects you when the driver who caused your accident has liability limits that are too low to fully compensate you. In California, minimum 3rd party liability coverage can be as low as $15,000 per person, which often falls short in serious injury cases. UIM coverage helps bridge the gap between the at-fault driver’s insurance and the actual cost of your damages - so you’re not left footing the bill.

 

When Does UIM Coverage Apply?
UIM coverage kicks in only after the at-fault driver’s insurance has paid out its full limits. Here’s when it typically applies:
•     The at-fault driver’s liability coverage is less than your damages
•     You’ve exhausted the other driver’s policy through a settlement or judgment
•     You’ve suffered economic and non-economic damages that exceed the other driver’s coverage
For example, if the other driver has $15,000 in liability coverage and you have $100,000 in UIM coverage, you may be eligible to recover up to $85,000 from your own insurer—depending on the total value of your claim.

 

Who Can Use UIM Coverage?
UIM coverage isn’t just for the policyholder. In California, it can also protect:
•     Family members living in your household
•     Passengers in your insured vehicle
•     Pedestrians or cyclists injured by an underinsured driver, if they’re covered under your policy
This broad protection makes UIM coverage a smart investment for families and anyone who frequently drives with others.

 

What Are the Benefits?
Underinsured Motorist coverage offers several key advantages:
•     Financial protection when the other driver’s insurance falls short
•     Peace of mind knowing you have a safety net
•     Access to compensation for medical expenses, lost income, pain and suffering, and more
•     No need to sue the underinsured driver and go after their personal assets - instead, you can pursue recovery through your own insurer
It’s important to note that UIM claims are made against your own insurance company, which means you’ll need to navigate that process carefully. Having an experienced personal injury attorney on your side can make all the difference in securing a fair recovery.

 

At Harriman Law, we’ve seen firsthand how UIM coverage can be a lifeline for injured clients. If you’ve been hurt in an accident in California and suspect the other driver may be underinsured, don’t wait - reach out to our team for a free consultation. We’ll help you understand your rights, evaluate your coverage, and fight for the compensation you deserve.