Being hit by an uninsured driver is more common than most people realize. In California, a significant percentage of drivers carry no liability insurance despite legal requirements. Uninsured and underinsured motorist coverage steps into the at-fault driver's shoes and pays what that driver would have owed.
Uninsured motorist (UM) coverage applies when the at-fault driver has no insurance at all, when the at-fault driver leaves the scene (hit-and-run), or when the vehicle is stolen. Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their limits are insufficient to fully compensate your losses.
UM/UIM coverage pays for bodily injury damages including medical bills, lost wages, pain and suffering, and other compensatory damages that the at-fault driver would have owed. Some policies also include uninsured motorist property damage (UMPD) to cover vehicle damage. Coverage is subject to your policy limits.
Some states allow stacking — combining the UM/UIM limits from multiple vehicles on your policy or multiple policies in your household. Stacked coverage can significantly increase the maximum available recovery. Understanding whether stacking is available in California can materially affect the coverage analysis after a serious accident.
Common UM/UIM mistakes: failing to report the accident to your own insurer promptly; settling with the at-fault driver without your insurer's consent (this can void your UIM claim); assuming UM/UIM is automatic when it must be purchased; and accepting a low UM/UIM limit thinking it will never be needed.
The Insurance Professor is trained on California insurance law and regulation. Ask about your policy, your claim, or your rights.
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Regulatory resource: California Department of Insurance — https://www.insurance.ca.gov. The Insurance Professor provides education only — not legal or insurance advice.