Understanding Underinsured and Uninsured Motorist Coverage (UM / UIM) in California

If you have been injured in a car accident in California, there is a 1 in 6 chance that the other driver was uninsured. And even if they had insurance, there is a high likelihood it was only the minimum coverage — often too low to cover serious injuries or extensive property damage. This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage step in to protect you.

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Introduction

In this post, we will break down how UM/UIM coverage works, highlight crucial legislative updates, and explain why you need a personal injury lawyer if you’ve been in an accident where the other driver doesn’t have adequate insurance

What Is Uninsured and Underinsured Motorist Coverage?

Uninsured Motorist (UM) coverage pays for your damages when the at-fault driver has no insurance. Underinsured Motorist (UIM) coverage helps when the at-fault driver has some insurance, but not enough to cover your total expenses. Both protect you, the policyholder, when the other party is unable or unwilling to fully pay for your medical bills, lost wages, and pain and suffering.

Why You Need to Protect Yourself — Not Just Others — with UM/UIM Coverage.

Most of us carry high amounts of liability insurance — often hundreds of thousands of dollars — to protect ourselves in case we injure someone else in a car crash. This coverage helps pay for the other person’s pain and suffering (general damages), as well as their medical bills, lost income, and property damage (special damages).

But here’s the problem: far too many people stop there.

They forget to protect themselves.

According to the Insurance Research Council, 17% of California drivers have no insurance at all, and many others only carry the minimum legal limits, which won’t come close to covering serious injuries. That means if you are hit by one of these underinsured or uninsured drivers, you could be stuck paying your own medical bills and other expenses — even if the crash wasn’t your fault.

That’s where Uninsured/Underinsured Motorist (UM/UIM) coverage comes in.

The Smart Way to Maximize Your UM / UIM Protection in California

Here is something many drivers don’t realize: If you have a solid auto insurance policy — say $250,000 in liability coverage — you’re usually allowed to match that amount with $250,000 in UM/UIM coverage, often for a relatively small increase in premium.

This means you are not just protecting other people in case you cause an accident — you’re also protecting yourself and your family in case someone else hits you and doesn’t have enough insurance.

Example: If you carry $250,000/$500,000 in liability coverage, you can typically buy the same amount in UM/UIM coverage. This ensures you’re just as protected when someone else is at fault as you are when you are.

Low Mandatory Liability Limits
Currently (through 2024), the minimum liability limits are $15,000 per person / $30,000 per accident / $5,000 property damage. These can be quickly exhausted in a serious crash.
Hit-and-Run Incidents
UM coverage can protect you if you’re the victim of a hit-and-run accident, provided you meet certain requirements like the physical contact rule (added to California law in 1961 via California Insurance Code §11580.2(b)(1)).

A Brief History of UM/UIM in California.

1959: California first required insurers to offer Uninsured Motorist coverage to policyholders.
1961: Legislative amendments introduced the physical contact rule for hit-and-run claims, aiming to deter fraud.
1984: Underinsured Motorist (UIM) coverage was officially introduced, allowing victims to recover the difference between the at-fault driver’s minimal policy and their own UM/UIM policy limit.
1992–1995: Key court cases like Hartford Fire Ins. Co. v. Macri (1992) and Quintano v. Mercury Casualty (1995) clarified policy exhaustion rules and arbitration time limits (typically requiring an insured to formally demand arbitration or file suit within two years of the accident if seeking UM benefits).
2022: Passage of SB 1107 to raise minimum liability limits to $30,000/$60,000/$15,000 starting in 2025, with the goal of reducing underinsured scenarios.

Recent Changes and Important Legislation to UM / UIM Coverage.

Many drivers are not aware that starting in January 2025, California’s minimum liability coverage increases to $30,000 per person / $60,000 per accident / $15,000 property damage. While this helps, it may still not be enough for severe injuries or accidents with multiple victims.
Here is why it matters:
1. Higher Liabilities: More drivers will carry increased coverage, theoretically reducing your risk of encountering an underinsured motorist.
2. UM/UIM Limit Increases: To maximize protection, you’ll want to match or exceed these higher liability minimums with your own UM/UIM coverage.

Common Myths About UM/UIM Coverage.

“UM/UIM coverage isn’t necessary if I have health insurance.”
Health insurance may cover some of your bills, but it won’t compensate for things like pain, suffering, or long-term wage loss.
“I’m fully covered if I have liability insurance.”
Liability insurance only protects others if you’re at fault. UM/UIM is what protects you when they are at fault and lack adequate coverage.
“UM/UIM coverage is too expensive.”
Typically, it’s just a fraction of your overall premium. With so many drivers lacking adequate insurance, UM/UIM coverage can save you tens of thousands of dollars in the event of a bad crash.

Always read your insurance policy! Many policyholders don’t realize they have UIM coverage until they speak with a lawyer.

How Can a Personal Injury Lawyer Experienced in UM/UIM Coverage Can Help You?

A personal injury lawyer familiar with UM/UIM coverage can help you:

Navigate insurance claims, including the arbitration process and deadlines mandated by California law.
Negotiate settlements effectively, ensuring insurance companies don’t shortchange you.
File a lawsuit or demand arbitration if your UM/UIM insurer refuses to pay fairly.
Understand offsets (e.g., workers’ compensation, disability benefits) and how they affect your total recovery.

If you live in San Diego or the surrounding area and you have been injured by an uninsured or underinsured driver, don’t wait to seek legal advice. Call our office for a free consultation — we’ll walk you through your rights step by step.

Case Study: Real-Life Example of UM/UIM Coverage in Action.

Example:

Scenario: A driver in San Diego was rear-ended by a motorist carrying only $15,000 in liability coverage.
Damages: The injured driver incurred $40,000 in medical bills plus additional lost wages.
Outcome: The injured driver’s UM/UIM policy provided $50,000 in coverage. After collecting $15,000 from the at-fault driver, the victim secured an additional $35,000 from their own underinsured motorist coverage, covering all medical costs and a portion of lost wages.

Statistics on UM/UIM Accidents in California.

Statistic	Value	Source
Estimated Percent of uninsured CA drivers	~17%	Insurance Research Council
National average uninsured rate	~14%	Insurance Research Council
Old CA insurance minimum limits (through 2024)	15/30/5	California Vehicle Code §16056
New minimum limits (effective Jan. 1, 2025)	30/60/15	SB 1107

Key Takeaways Regarding UM / UIM Coverage in California.

UM/UIM coverage in California is essential: With an estimated 17% of drivers uninsured and many more underinsured, it’s the only reliable way to ensure you can cover your losses if you’re hit by someone with inadequate insurance.
Maximizing your UM/UIM coverage: You can usually match your liability coverage with the same amount of UM/UIM coverage — and it often costs just a small additional premium to do so.
Legislative updates (SB 1107) raise minimum coverage requirements in 2025, but catastrophic accidents can still exceed those limits.
If you’re injured, a personal injury lawyer who knows UM/UIM law can help you navigate complex arbitration and claim processes so you’re not left paying for expenses that aren’t your fault.

Contact Our San Diego Personal Injury Firm Today

Have questions about uninsured or underinsured motorist coverage in California? Looking for an experienced San Diego personal injury attorney to maximize your compensation? Contact us now for a free consultation. Our team has extensive experience handling insurance disputes, arbitration, and litigation to secure the best outcomes for injured victims.

Disclaimer: The information in this blog post is provided for educational purposes only and does not constitute legal advice. If you need legal assistance, please consult a qualified attorney regarding your specific situation.