California requires drivers to carry auto liability insurance, but a large number of drivers on the road are uninsured, and many more carry only the state's minimum coverage, often far less than what a serious injury actually costs. Uninsured motorist (UM) and underinsured motorist (UIM) coverage exist to fill that gap, but pursuing a UM/UIM claim is different from a standard third-party injury claim in several important ways. Because you are making the claim against your own insurance company, the process can quickly become adversarial, technical, and confusing.
At Yadegar Law Firm, PC, we help injured drivers and passengers throughout Los Angeles understand their UM/UIM coverage and pursue the compensation their policy is supposed to provide.
What Is Uninsured Motorist (UM) Coverage?
UM coverage applies when the at-fault driver has no liability insurance at all, or in certain cases when the at-fault driver cannot be identified (for example, in a hit-and-run). Instead of pursuing an at-fault driver with no insurance to collect from, you make a claim against your own UM coverage, up to your policy limits.
What Is Underinsured Motorist (UIM) Coverage?
UIM coverage applies when the at-fault driver does have insurance, but their policy limits are too low to fully compensate you for your medical bills, lost income, and other losses. Many drivers carry only the state's minimum liability limits, which can be exhausted quickly in a case involving surgery, hospitalization, or long-term care. UIM coverage can make up some or all of the difference, subject to your own policy limits and applicable offsets.
UM/UIM Coverage Can Be Rejected in Writing
Under California law, insurers are generally required to offer UM and UIM coverage as part of an auto policy, but a policyholder may reject that coverage in writing. This is why it's important to review your own declarations page carefully after a crash: some drivers are surprised to learn they rejected this coverage years earlier, while others discover they carry higher limits than they remembered.
Offsets: Why UIM Claims Are Calculated Differently
In an underinsured motorist claim, the amount available from your UIM coverage is typically reduced, or offset, by the amount already paid by the at-fault driver's liability insurer. In practice, this means a UIM claim is not simply 'your UIM limit' on top of the at-fault driver's payment; it is generally the difference between your UIM limit and what the at-fault carrier already paid, subject to the specific terms of your policy. Understanding this interaction is critical to evaluating whether a settlement offer from the at-fault driver's insurer, or from your own UIM carrier, is fair.
Getting Your Insurer's Consent Before You Settle
If you plan to pursue a UIM claim, it is important to notify your own insurance company before accepting any settlement from the at-fault driver's insurer. Many policies require your insurer's consent to settle with the at-fault party, because your carrier has a right to protect its own subrogation interests. Settling without following the proper notice procedures can jeopardize your ability to pursue the UIM claim afterward. An attorney can help make sure the required notices and consents are handled correctly and on time.
UM/UIM Disputes Are Often Resolved Through Arbitration
Under Insurance Code § 11580.2(f), if you and your insurer cannot agree on whether you are legally entitled to recover from an uninsured or underinsured motorist, or on the amount of damages, that dispute is generally decided by agreement between the parties or by arbitration before a single neutral arbitrator, rather than a traditional lawsuit, as required by the policy and the statute. Preparing a UM/UIM arbitration typically involves gathering medical records, wage documentation, and evidence of how the injury has affected your life so the arbitrator has a complete picture. Separately, under Insurance Code § 11580.2(i), an insured must generally act within two years of the accident, by filing suit against the uninsured motorist, agreeing with the insurer to arbitrate, or formally initiating arbitration, or risk losing the right to pursue a UM claim.
Phantom Vehicles and Hit-and-Run Claims
When the at-fault driver cannot be identified, such as in many hit-and-run cases, Insurance Code § 11580.2(b) generally requires that the injury arise from actual physical contact between the unidentified vehicle and your vehicle (or the vehicle you occupied), that the accident be reported to the police, sheriff, or CHP within 24 hours, and that a sworn statement supporting the claim against the unidentified driver be filed with your insurer within 30 days. An independent witness can provide valuable supporting evidence, but it does not substitute for the statute's physical-contact requirement. We help clients gather and present this evidence to support a UM claim involving an unidentified driver.
Stacking, Limits, and Multiple Policies
Depending on your policy and household, you may have UM/UIM coverage available under more than one policy (for example, if you own multiple vehicles or live with relatives who also carry coverage). More than one policy may need to be reviewed when evaluating available UM/UIM coverage. California law permits policies to contain provisions limiting recovery when more than one uninsured motorist coverage applies, including provisions under which damages do not exceed the highest applicable limit and are prorated among the applicable coverages (Insurance Code § 11580.2(d)). Whether another policy provides coverage still depends on the facts and the specific policy language, which is why each potentially applicable policy is reviewed.
Notice and Proof Requirements
UM/UIM policies typically include strict deadlines and requirements for reporting a claim, submitting proof of loss, and cooperating with your insurer's investigation. Missing these requirements can give the insurer grounds to deny an otherwise valid claim. We handle these deadlines and paperwork on our clients' behalf so nothing falls through the cracks.
If you were injured by an uninsured or underinsured driver in Los Angeles, contact Yadegar Law Firm, PC today for a free, confidential consultation about your UM/UIM claim.