Why Uninsured Motorist Coverage is Essential for Drivers in California
What happens if you’re injured in a car accident caused by a driver without insurance? Despite California’s car insurance requirements, around 17% of drivers—roughly one in six—are uninsured. Others carry only the minimum coverage, which may not be enough to cover accident-related costs. If you’re hit by one of these drivers, you could end up paying out of pocket for medical expenses and vehicle repairs.
Uninsured motorist coverage in California offers extra financial protection in these situations. Having the right coverage can help prevent unexpected expenses after an accident with an uninsured or underinsured driver.
Navigating Uninsured Motorist Coverage in California
You are on your way to pick up your child from school when the unthinkable happens – you are suddenly hit by a driver running a red light. It’s a scary event and your first thoughts are a jumble, especially if you are injured. Later, after the dust has settled, you find out the driver who hit you doesn’t have the necessary insurance to pay for your car repairs and medical bills. Of course, you can take them to court but that takes time and if they have no assets, you may end up with nothing. Uninsured motorist coverage is an affordable protection in a situation like this, and will help you get back on the road.
Uninsured/underinsured motorist (UM/UIM) coverage reimburses you for injuries, property damage, and other bills when another driver is at fault but doesn’t have insurance or doesn’t have a policy big enough to cover your medical bills and other losses. It also covers accidents in which an at-fault driver flees the scene in a hit-and-run and cannot be found.
Depending on your policy, you may be able to collect compensation for medical payments, lost wages, car repair bills, pain and suffering, and other losses.
State Requirements and Policy Options
Auto insurance (referred to as financial responsibility) is required on all vehicles operated in California. At a minimum, drivers are required to have the following liability coverage.
- $30,000 for injury/death to one person
- $60,000 for injury/death to more than one person
- $15,000 for damage to property
You can choose to increase your liability limits and add additional coverages to your policy, including collision and comprehensive coverage. Uninsured motorist coverage is added to your liability policy unless you sign a waiver saying you don’t want the coverage.
California’s Laws on Uninsured Motorist Coverage
California law does not require drivers to carry uninsured motorist coverage, but insurers must include it in bodily injury liability policies unless the policyholder explicitly waives it in writing. This coverage can help protect you financially if you’re involved in an accident with an uninsured or underinsured driver.
While opting out may lower your premium, it also increases the risk of having to cover accident-related expenses yourself. Without uninsured motorist coverage in California, you could face significant out-of-pocket costs if a driver without insurance causes damage or injury.
The Claims Process with Uninsured Motorist Coverage
California is an “at-fault” insurance state, which means the driver who caused the accident is responsible for paying for damages. This should mean that you can file a claim with the driver’s insurance company and have the peace of mind of knowing you’ll be compensated for your injuries and damage to your vehicle. Unfortunately, many accident claims are more complex. Knowing what to do when you’re hit by an uninsured driver can help you ensure you don’t have to pay for damages out of pocket.
Once you confirm a driver has no insurance, you can file an uninsured motorist claim with your insurance company. You’ll need to submit medical bills, car repair estimates, proof of the at-fault driver’s lack of insurance, and any other statements that outline the cost of your damages.
If the responsible driver is underinsured, your coverage will kick in after costs exceed the driver’s liability limits. You can make a claim to cover the remaining costs up to the coverage limits of your UM policy.
In either case, your insurance company will assign an adjuster to evaluate your claim. If your insurance company disputes the claim or offers a low settlement, you may need to hire an attorney to advocate for you during arbitration or assist with filing a lawsuit.
Comparing Uninsured Motorist Coverage to Other Types
When you consider the cost of medical care and modern vehicles or car repairs, it’s easy to see that California’s minimum liability limit could quickly be exhausted by damages caused by an accident. Yet, you may wonder if you really need UM coverage when you have full coverage car insurance.
Full coverage car insurance in California supplies two additional forms of coverage along with your liability coverage:
- Comprehensive Coverage: This policy pays for non-collision damage to your vehicle, including theft, fire, flood, vandalism, or collision with an animal. It does not provide coverage for an accident involving another vehicle.
- Collision Coverage: This policy pays for damage caused to your vehicle in an accident, including collisions with other vehicles, collisions with inanimate objects, and rollovers, regardless of fault. However, it does not include coverage for medical and associated costs.
The Difference Between Uninsured and Underinsured Coverage
Uninsured motorist coverage protects you if you’re involved in an accident with a driver who lacks insurance. In contrast, underinsured motorist coverage steps in when the at-fault driver’s insurance is insufficient to cover the damages. Both types help prevent financial hardship, especially in accidents that lead to costly repairs or medical expenses.
Collision vs Uninsured Motorist Property Damage Coverage
Most lenders won’t finance a vehicle unless you have full coverage. While collision coverage is a valuable asset in an accident, it might not be enough to keep you from ending up in debt after an accident caused by an uninsured driver.
Collision coverage pays for repairing or replacing your car if it’s damaged in a collision, no matter who’s at fault. However, collision insurance comes with a deductible and doesn’t pay you or your passengers for medical expenses.
While uninsured motorist property damage coverage only pays for a collision with an uninsured/underinsured driver, it includes a collision deductible waiver that pays for your collision deductible. UM coverage also pays for medical expenses when you or your passengers are injured. However, payout is limited to the coverage limits of your policy, which typically matches the limits on your liability policy.
In most cases, collision coverage and UM property damage coverage shouldn’t be an “either-or” situation. Finding affordable car insurance coverage that includes both is the best way to ensure you won’t be facing insurmountable debt after a car accident that wasn’t your fault.
Don’t Risk Being Unprotected! Get a Quick Quote for Uninsured Motorist Coverage in California and Drive with Peace of Mind
With nearly one in six drivers uninsured, having the right protection can save you from costly out-of-pocket expenses. Now is the perfect time to review your policy and ensure you’re covered. At Cost-U-Less, we help California drivers find reliable, high-value coverage at affordable rates. Call us at (800) 390-4071 for a quick quote, get a free online estimate, or visit a local office today.
