After a car accident, the last thing you want to discover is that the at-fault driver has no insurance or lacks enough coverage to pay for your injuries and losses. Unfortunately, this situation happens more often than many expect. That is where uninsured and underinsured motorist coverage comes in.
In California, drivers are not required to carry uninsured/underinsured motorist coverage. However, choosing to include it in your policy can be a wise decision. This extra protection can offer peace of mind and financial security if you are hurt in an accident with someone who cannot fully compensate you.
What uninsured motorist insurance covers
Uninsured motorist (UM) insurance helps cover your expenses if you are hit by a driver who does not have auto insurance. There are two types of UM coverage. Uninsured motorist bodily injury (UMBI) can pay for medical expenses, lost wages and other injury-related costs for you and your passengers. Uninsured motorist property damage (UMPD), where available, may help cover the costs of repairing or replacing your vehicle after the crash.
UM coverage can also apply in hit-and-run situations, which can be especially helpful when the other driver flees the scene and cannot be identified.
What underinsured motorist insurance covers
Underinsured motorist (UIM) insurance provides similar protection when the at-fault driver has insurance, but not enough to cover all your losses. If your medical bills or vehicle damage exceed the limits of the other driver’s policy, your UIM coverage may make up the difference.
Underinsured motorist bodily injury (UIMBI) can pay for medical treatment, rehabilitation and lost income. Underinsured motorist property damage (UIMPD) may help pay for your vehicle repair costs, depending on your insurer’s terms. While not mandatory in California, adding uninsured and underinsured motorist coverage to your policy can be a smart way to protect yourself financially after a serious crash.
If you have questions about how this coverage applies to your situation, legal guidance can help you understand your options.
