Uninsured vs. Underinsured Motorist Coverage: What Victims Need to Know

Understanding Uninsured and Underinsured Motorist Coverage

Some drivers don’t have any insurance, and others have only the minimum coverage required by the law. This is when uninsured and underinsured motorist coverage is relevant.

Knowing the distinction between these two types of insurance can aid accident victims in safeguarding themselves and securing compensation following an accident.

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage, also known as UM coverage, covers you when the other driver in the accident has no auto insurance.

Despite the fact that California law mandates that drivers have liability insurance, many people drive without coverage. If the driver is not insured, the victims may find it difficult to get reimbursed for: 

• Medical expenses
• Lost wages
• Pain and suffering
• Property damage
• Future treatment costs

If a person doesn’t have uninsured motorist coverage, he or she may be liable for these expenses.

To bridge that gap, there’s the UM coverage, which allows the injured motorist to make a claim under his or her own insurance policy. 

The Kohan and Bablove website offers drivers involved in serious accidents additional information about their legal options via its car accident lawyer resources.

What Is Underinsured Motorist Coverage?

Underinsured motorist coverage, also known as UIM coverage, is used when the at-fault motorist has insurance, but the limits are not high enough to cover the victim’s losses. 

For instance, a driver can have just the California minimums. Available insurance may not even begin to address medical expenses, lost wages, and long-term recovery if the victim is severely injured.

Underinsured motorist coverage can then assist in covering the damages that are left unpaid by the at-fault driver’s insurance

The Key Difference Between UM and UIM Coverage

The only distinction between uninsured vs. underinsured motorist coverage is the amount of insurance the negligent driver has. 

Uninsured Motorist Coverage

• The driver at fault is uninsured
•  You may be covered for your damages under your own policy.
•  Commonly used in hit-and-run accidents 

Underinsured Motorist Coverage

• The at-fault driver has some insurance
•  They have insufficient coverage amounts.
•  The rest of the losses may be covered by your policy.

Both coverages are intended to keep drivers out of financial trouble following an accident

Why This Coverage Matters in California?

There are many uninsured and underinsured drivers in California. Even if you are a careful driver, you may find yourself with big bills after an accident with an underinsured driver.

The expenses associated with a medical injury can rapidly add up following a severe accident. The ER, surgeries, physical therapy, and follow-up care can last for months or years.

If the victim does not have proper insurance coverage, they may find it difficult to recover.

Many people don’t realize the importance of uninsured and underinsured motorist coverage until after an accident occurs

What's Usually Covered By UM/UIM Insurance?

Uninsured and underinsured motorist coverage varies by insurance policy but can include: 

• Medical expenses
• Lost wages
• Pain and suffering
• Funeral expenses
• Ongoing rehabilitation costs
• Compensation for permanent injuries

Some policies may also cover the property damage of uninsured motorists for vehicle repairs.

Hit-and-Run Accidents and UM Coverage

Another situation where uninsured motorist coverage can be important is a hit-and-run accident.

If the driver flees the scene and cannot be located, the accident can be handled much like an accident with an uninsured driver.

However, the victim may still be able to recover under his or her own uninsured motorist policy. 

The Kohan and Bablove website has a personal injury section, which offers more information on accident-related claims and injury recovery.

What are some of the Common Problems With Insurance Companies?

Even if victims make claims under their own insurance policies, insurance companies don’t always make the claims process easy.

Some of the common problems can be: 

• Delayed claim processing
• Low settlement offers
• Disputes over medical treatment
• Denied claims
• Arguments about fault

Many accident victims are surprised to learn that their own insurance company may try to minimize payouts.

That’s why legal representation may be important in the context of UM or UIM claims.

How Much UM/UIM Coverage Should Drivers Have?

California’s minimum insurance requirements are frequently not enough to cover major accidents.

Drivers should look into buying more UM and UIM coverage to better protect themselves and their families.

Some things that may impact coverage requirements are: 

Factors that may affect coverage needs include:

• Income level
• Medical insurance coverage
• Vehicle value
• Number of family members
• Daily driving habits

It is easy to blow through the minimum coverage limits in a serious injury accident.

What Should Victims Do After an Accident?

If you have been injured in an accident with an uninsured or underinsured driver, you should take measures to safeguard your rights. 

Seek Medical Attention

Always get medical care as soon as possible. Some injuries might not be obvious right after the accident. 

Report the Accident

Call the police and report the accident. This documentation can be crucial when filing an insurance claim. 

Contact Your Insurance Company

Let your insurance company know about the accident, particularly if you might need to use UM or UIM coverage. 

Gather Evidence

Photograph, gather witness statements, and maintain records of medical and repair expenses. 

Talk to an Attorney

Insurance cases can get complex in no time. A knowledgeable lawyer will be able to explain the coverage options and fight for a fair settlement.

Those who have suffered serious injuries following an accident can also benefit from looking at Kohan and Bablove’s catastrophic injury resources

Why Legal Guidance is Important?

Uninsured and underinsured motorist claims can be complex insurance policy language and settlement negotiations.

An attorney can assist: 

• Review insurance coverage
• Investigate the accident
• Handle insurance communications
• Calculate long-term damages
• Negotiate settlements
• File lawsuits if necessary

When medical bills, lost income, and recovery issues are present, legal help can make a huge difference for the victim.

Final Thoughts

It is crucial for every driver to understand uninsured vs underinsured motorist coverage. Even if you are a careful driver, you cannot be sure that other drivers have adequate insurance coverage.

Uninsured motorist coverage is for when the driver who is at fault does not have insurance. Underinsured motorist coverage is useful if the insurance available is insufficient to cover damages.

Either form of protection may be able to offer important monetary assistance following a major accident.

Kohan and Bablove will help you understand your legal rights and insurance options if you were injured in an accident with an uninsured or underinsured driver. Contact the highly skilled legal team at Kohan and Bablove today for a complimentary consultation