What You Need to Know About Uninsured and Underinsured Coverage
Car accidents in Los Angeles can be devastating, often leaving victims facing hefty bills and injuries. A Los Angeles car accident attorney can explain the differences between uninsured and underinsured motorist coverage, crucial for safeguarding financial stability.
Uninsured motorist coverage helps when the at-fault driver lacks insurance, ensuring victims still receive compensation. Underinsured motorist coverage steps in when the at-fault driver’s insurance isn’t sufficient to cover all expenses.
Understanding these types of coverage is vital for anyone driving in Los Angeles. Without this knowledge, victims might end up with inadequate compensation, further complicating recovery. Always review and understand insurance policies to ensure comprehensive protection in case of an accident.
Quick Summary
Below is an overview of the key points of this blog article.
- Uninsured motorist insurance helps when you’re in an accident with a driver who doesn’t have liability insurance. Underinsured motorist coverage pays when the at-fault driver’s insurance is not enough to cover all your medical expenses. In California, insurers must offer both types of coverage, but you can choose whether to buy it. If you decline, you need to sign a waiver.
- Uninsured and underinsured motorist coverage protects you in various situations, not just when you are in your own car. This coverage extends to injuries you suffer while riding a bicycle or motorcycle, sitting on a bench, or walking in a crosswalk. It also covers all family members living in your household if they are injured while passengers in someone else’s car, riding a bicycle or motorcycle, sitting on a bench, or walking as pedestrians.
- To activate underinsured motorist coverage, start by filing a personal injury claim with the at-fault driver’s insurance company. They will cover damages up to their policy limit but are not obligated to pay beyond that amount. If their insurance does not cover all your expenses, file a UIM claim with your own insurance company. Your insurer will verify the payment from the at-fault driver’s insurance and offer a settlement for any remaining costs beyond the at-fault driver’s policy limit.
What is the Difference Between Uninsured and Underinsured Motorist Coverage?
Uninsured motorist insurance helps you when you’re in an accident with a driver at fault who doesn’t have liability insurance. Underinsured motorist coverage pays out when you’re in an accident with a driver at fault whose insurance doesn’t cover all the medical bills from the accident.
Usually, the at-fault driver’s insurance covers damages up to their policy limits. Then, your underinsured motorist coverage pays the extra amount up to your policy limits. In California, insurance companies must offer you uninsured or underinsured motorist coverage.
You can choose to buy it or not. If you say no, you must sign a waiver stating that you were offered it. There are three types of insurance in this category.
- Uninsured Motorist Bodily Injury (UMBI) covers injuries to you and your passengers from an accident caused by an uninsured driver. The coverage limits are usually the same as your liability coverage.
- Underinsured Motorist (UIM) helps with bodily injury costs when an at-fault driver doesn’t have enough insurance to pay for your expenses.
- Uninsured Motorist Property Damage (UMPD) insurance covers damages to your car from an at-fault uninsured driver. The limit is usually $3,500.
When Does Underinsured and Uninsured Motorist Coverage Apply?
In California, uninsured and underinsured auto insurance applies only if the other driver’s liability limits are lower than your uninsured and underinsured auto insurance coverage. For example, if the at-fault driver has a $15,000 liability policy and you have a $15,000 UM or UIM policy, you can’t get any benefits from your policy.
But if you had $30,000 in UM or UIM coverage, you could claim up to $15,000 from your policy. Uninsured and underinsured auto insurance policies have several requirements to trigger coverage. You must first use up the at-fault driver’s policy limits and provide proof (like a settlement agreement or check) to your insurance company.
Some policies also require that your claim be handled through arbitration instead of civil court. It’s important to read your policy and know what you need to do to make a claim for underinsured and uninsured auto insurance coverage.
When Does Uninsured and Underinsured Motorist Coverage Protect Me?
When explaining underinsured motorist coverage, you naturally want to know who is protected by UM or UIM coverage. This coverage extends to you (the insured person) in several situations and is not limited to when you are in your insured vehicle. This means UM and UIM coverage protects you even when you are:
- Injured while riding a bicycle or motorcycle.
- Hit while sitting on a bench.
- Injured while walking in a crosswalk.
Protection applies to all family members living in your household if:
- Injured while passengers were in someone else’s car.
- Injured while riding a bicycle or motorcycle.
- Hit while sitting on a bench.
- Injured while walking as a pedestrian.
How to Trigger My Uninsured Motorist Coverage?
Please take the following steps to trigger the uninsured motorist coverage of your motor vehicle insurance plan.
- Get a police report that documents the accident and states it was the fault of the under-insured driver. The report must also show the at-fault driver did not provide proof of insurance to the officer.
- Open a claim with your car insurance company.
- Your insurance company verifies that the at-fault driver is uninsured.
- Your insurance company offers a claim settlement, covering medical bills, lost wages, property damage, pain and suffering, and any other financial losses related to the accident.
How to Trigger My Underinsured Motorist Coverage?
Simply investing in and understanding underinsured motorist coverage is not enough. You must take the following steps to activate the underinsured motorist part of your car insurance.
- File a personal injury claim with the at-fault driver’s insurance company right away. The insurance company accepts liability (agrees their driver was at fault).
- The at-fault driver’s insurance company pays you up to their driver’s policy limits. They are not required to pay more than this limit.
- If the at-fault driver’s insurance doesn’t cover all your bills, file a UIM claim with your insurance company.
- Your insurance company verifies the payment from the at-fault driver’s insurance.
- Your insurance company determines your claim’s value and offers a settlement for the amount over the at-fault driver’s policy limit.
Authoritative and Confident Legal Representation
Haffner Law stands as a pillar of support for Los Angeles car accident victims. Our law firm’s deep understanding of uninsured and underinsured motorist coverage ensures our clients receive the compensation they deserve.
With a proven track record in personal injury, our trusted Los Angeles car accident attorney approaches each case with personal care and determination, fighting for justice and fair settlements. You can trust our unwavering dedication to your well-being and financial recovery.
Choosing Haffner Law means partnering with a team committed to achieving the best possible outcome. Our authoritative and confident approach reassures our clients that their legal challenges will be met with trusted guidance and vigorous representation.
With Haffner Law, you can gain a reliable advocate ready to navigate the complexities of your case, securing the compensation you need to move forward. Contact Haffner Law today for a free case review to ensure your rights are protected and your future is secure. Our legal team can also assist you with Face Injury and Foot Injury.
