California guide for uninsured and underinsured motorist claims
$15K/$30K
Minimum UM Coverage Required
Arbitration
Mandatory Dispute Resolution
2 Years
Statute of Limitations
When to Use This Guide
Use this guide when you've been injured in an accident and need to collect from your own UM/UIM coverage because:
Uninsured motorist (UM) - The at-fault driver has no insurance at all
Underinsured motorist (UIM) - The at-fault driver's coverage is less than your damages
Hit-and-run - The at-fault driver fled the scene and cannot be identified
Phantom vehicle - An unidentified vehicle caused the accident without contact
Coverage disputes - Your insurer is denying or delaying your UM/UIM claim
What UM/UIM Coverage Protects
Medical expenses - Hospital bills, surgery, physical therapy, ongoing treatment
Lost wages - Income lost due to inability to work
Pain and suffering - Non-economic damages for physical and emotional distress
Property damage - Vehicle repair or replacement (if covered)
Future damages - Anticipated medical care and lost earning capacity
California UM/UIM Is Mandatory
California requires all auto insurers to offer UM/UIM coverage. Under Insurance Code 11580.2:
UM coverage is automatic unless you reject it in writing
Minimum limits match liability minimums: $15,000/$30,000 bodily injury
You can purchase higher limits up to your liability coverage amount
UIM coverage is optional but strongly recommended
Common UM/UIM Claim Scenarios
Scenario 1: Uninsured Driver
The at-fault driver has no insurance. After confirming they are uninsured (or have lapsed coverage), you file a claim with your own insurer under your UM coverage for the full amount of your damages up to your policy limits.
Scenario 2: Underinsured Driver
The at-fault driver has $15,000 in liability coverage, but your damages total $100,000. You collect the $15,000 from their insurer, then file a UIM claim with your insurer for the remaining $85,000 (up to your UIM limits minus the amount already received).
Scenario 3: Hit-and-Run
An unidentified driver causes the accident and flees. You file a UM claim with your insurer. Note: California does not require "physical contact" for hit-and-run UM claims, but you must promptly report to police and your insurer.
Legal Basis
California Insurance Code provisions governing UM/UIM coverage
Key California Insurance Code Sections
Insurance Code 11580.2
The primary UM/UIM statute. Requires all auto policies to include UM coverage unless rejected in writing. Sets minimum coverage at $15,000/$30,000. Mandates arbitration for disputes.
Insurance Code 11580.2(a)(1)
Defines "uninsured motor vehicle" to include vehicles with no insurance, hit-and-run vehicles, vehicles with insolvent insurers, and vehicles with coverage insufficient to pay the claim.
Insurance Code 11580.2(f)
Stacking provision: When two or more vehicles are insured under the same policy, the insured may elect to stack (combine) UM/UIM limits. This can double or triple your available coverage.
Insurance Code 11580.2(i)
Hit-and-run coverage: UM benefits apply to hit-and-run accidents. California law does NOT require physical contact between vehicles for coverage to apply (unlike some states).
Insurance Code 11580.2(p)
Mandatory arbitration: Disputes over UM/UIM claims must be resolved through binding arbitration. Either party can demand arbitration. The decision is final and binding.
Insurance Code 790.03(h)
Unfair Claims Settlement Practices Act: Prohibits insurers from unreasonably denying or delaying UM/UIM claims. Bad faith handling exposes the insurer to extra-contractual damages.
CCP 1281.2 et seq.
California Arbitration Act governing the arbitration process for UM/UIM disputes. Provides procedures for selecting arbitrators, conducting hearings, and enforcing awards.
Key Legal Concepts
Stacking in California
California permits "intra-policy stacking" - combining UM/UIM limits when multiple vehicles are on the same policy. For example:
Policy covers 2 vehicles with $100,000 UM each
You can stack to get $200,000 in available UM coverage
You must affirmatively elect stacking with your insurer
Offset Rule for UIM Claims
For underinsured motorist claims, your UIM benefits are typically reduced by amounts you receive from the at-fault driver's insurance. Example:
Your damages: $150,000
At-fault driver's limits: $25,000 (you receive this first)
Your UIM limits: $100,000
UIM benefit: $100,000 (not reduced below your limit)
Total recovery: $125,000
Evidence Checklist
Documents to gather before sending your UM/UIM demand letter
Essential Documents
✓
Your insurance policy - Declarations page showing UM/UIM coverage limits
✓
Police report - Official accident report with other driver information
✓
Proof of uninsured/underinsured status - Letter from at-fault driver's insurer or DMV records
✓
Medical records - Complete records from all treating providers
✓
Medical bills - Itemized bills from hospitals, doctors, therapy, etc.
✓
Proof of lost wages - Pay stubs, employer letter, tax returns
If you have multiple vehicles on your policy, California allows you to stack UM/UIM coverage. With 2 vehicles at $100,000 each, you may have $200,000 in available coverage. Review your policy and discuss stacking with your insurer.
Sample Language
Copy and customize these paragraphs for your UM/UIM demand letter
Opening Paragraph - UM Claim
I am writing to make a formal demand under my Uninsured Motorist (UM) coverage for injuries and damages I sustained in a motor vehicle accident on [DATE]. The at-fault driver, [NAME or "an unidentified driver (hit-and-run)"], is uninsured, triggering my UM coverage under Policy Number [POLICY NUMBER].
Opening Paragraph - UIM Claim
I am writing to make a formal demand under my Underinsured Motorist (UIM) coverage for injuries and damages I sustained in a motor vehicle accident on [DATE]. The at-fault driver, [NAME], was underinsured with liability limits of only $[AMOUNT]. I have received $[AMOUNT] from the at-fault driver's insurer, which is insufficient to compensate me for my damages. I am now pursuing my UIM coverage under Policy Number [POLICY NUMBER].
Liability Statement
On [DATE], at approximately [TIME], I was traveling [direction/location] when the at-fault driver [describe how accident occurred - e.g., "ran a red light and struck my vehicle on the driver's side" or "rear-ended my vehicle while I was stopped at a traffic light"]. The at-fault driver was 100% liable for this collision due to [their negligent act].
Legal Basis - California UM/UIM
Under California Insurance Code Section 11580.2, I am entitled to UM/UIM benefits up to my policy limits when injured by an uninsured or underinsured motorist. My policy provides UM/UIM coverage of $[LIMIT] per person / $[LIMIT] per accident. [If stacking applies: "I have elected to stack my UM/UIM coverage pursuant to Insurance Code Section 11580.2(f), as my policy covers [NUMBER] vehicles, providing total available coverage of $[STACKED AMOUNT]."]
Damages Summary
My damages are calculated as follows:
Past Medical Expenses: $[AMOUNT]
Future Medical Expenses: $[AMOUNT]
Past Lost Wages: $[AMOUNT]
Future Lost Earnings: $[AMOUNT]
Property Damage: $[AMOUNT]
Pain and Suffering: $[AMOUNT]
[If UIM: "Less Amount Received from At-Fault: ($[AMOUNT])"]
TOTAL UM/UIM DEMAND: $[TOTAL]
Closing - Arbitration Warning
This demand must be responded to within 30 days. If I do not receive a reasonable settlement offer within this timeframe, I will invoke my right to binding arbitration as provided under California Insurance Code Section 11580.2(f). I also reserve all rights to pursue a bad faith claim if this claim is unreasonably denied, delayed, or undervalued, which may expose you to liability for consequential damages, emotional distress, and punitive damages under Insurance Code Section 790.03(h).
Next Steps
What to do after sending your UM/UIM demand letter
Expected Timeline
Day 1-7: Insurer receives and assigns claim to adjuster
Day 7-21: Adjuster reviews medical records and documentation
Day 21-30: Initial response - settlement offer or denial
Day 30+: Negotiation or arbitration demand
If They Make an Offer
Evaluate the offer carefully:
Does it cover all your medical expenses (past and future)?
Does it compensate for lost wages?
Does it include adequate pain and suffering?
Consider counteroffer if the initial offer is too low
Most UM/UIM claims settle through negotiation. Document all offers in writing.
If They Deny or Lowball
Request Written Denial
Get the denial in writing with specific reasons. This is required under California's Fair Claims Settlement Practices Regulations.
Demand Arbitration
Under Insurance Code 11580.2(f), either party can demand binding arbitration. Send a written demand for arbitration referencing your policy's arbitration clause.
Consider Bad Faith Claim
If your insurer unreasonably denies, delays, or undervalues your claim, you may have a separate bad faith claim for additional damages beyond policy limits.
The Arbitration Process
How UM/UIM Arbitration Works
Arbitrator selection: Each party selects one arbitrator; those two select a neutral third
Discovery: Limited exchange of documents and depositions
Hearing: Informal hearing where both sides present evidence
Decision: Binding arbitration award, typically within 30 days of hearing
Timeline: Usually 6-12 months from demand to award
Statute of Limitations
California has a 2-year statute of limitations for personal injury claims, including UM/UIM claims. However, the contractual limitations period in your policy may be shorter. Review your policy and act promptly. Don't wait until the deadline approaches.
Need Help With Your UM/UIM Claim?
UM/UIM claims can be complex, especially when dealing with stacking, hit-and-run situations, or bad faith issues. Many personal injury attorneys handle UM/UIM claims on contingency (no fee unless you win). An experienced attorney can maximize your recovery through negotiation or arbitration.