Uninsured vs. Underinsured Motorist Coverage: What’s the Difference?
When you’re in a car accident, you usually look to the other driver’s insurance for help. But what if they don’t have enough – or any at all? This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages come in.
- Uninsured Motorist (UM): This kicks in if the driver who hit you has no insurance or if you are the victim of a hit-and-run where the driver can’t be found.
- Underinsured Motorist (UIM): This applies when the at-fault driver has insurance, but their policy limits are too low to cover your full damages, such as high medical bills or lost wages.
In California, these coverages are often bundled together. While they aren’t mandatory, insurance companies are required by law to offer them to you. If you choose to decline them, you must do so in writing. Because one in twelve California drivers may be uninsured, having these “first-party” protections can be the difference between a full recovery and paying for someone else’s mistake out of your own pocket.
