📋 UM/UIM Coverage Overview
When you are injured by an uninsured or underinsured driver in California, your own auto insurance policy provides protection through UM/UIM coverage. This guide explains how I help clients navigate claims against their own insurance company to recover compensation when the at-fault driver cannot pay.
👤 If You Are the Claimant
- You were hit by an uninsured driver (no insurance at all)
- You were hit by an underinsured driver (policy limits too low)
- You were the victim of a hit-and-run (unknown driver)
- Your damages exceed the at-fault driver's policy limits
- You are making a first-party claim against your own insurer
🏢 If You Are the Insurance Company
- Verify UM/UIM coverage applies and limits
- Confirm the at-fault driver was actually uninsured/underinsured
- Evaluate liability - your insured must prove fault
- Assess damages based on medical records and documentation
- Consider arbitration if settlement fails
Understanding UM vs. UIM Coverage
Uninsured Motorist (UM)
Covers you when the at-fault driver has no insurance at all, or when you are the victim of a hit-and-run by an unknown driver. Required in California.
Underinsured Motorist (UIM)
Covers the difference when your damages exceed the at-fault driver's policy limits. If they have $15K and your damages are $100K, UIM covers the gap.
UMPD (Property Damage)
Uninsured motorist property damage covers vehicle repair when hit by an uninsured driver. Subject to $3,500 limit unless you have collision coverage.
⚠ California Requires UM/UIM Coverage
Under Insurance Code 11580.2, California auto insurers must offer UM/UIM coverage equal to your liability limits. You can reject this coverage in writing, but most Californians carry it. Check your declarations page for your UM/UIM limits before proceeding with a claim.
Common UM/UIM Scenarios
❌ Completely Uninsured Driver
▼About 15% of California drivers are uninsured. If you are hit by someone with no insurance, your UM coverage pays your medical expenses, lost wages, and pain and suffering up to your policy limits. You must still prove the other driver was at fault.
💲 Underinsured Driver (Low Limits)
▼California's minimum liability is only $15,000 per person. If your damages are $100,000 but the at-fault driver only has $15,000 coverage, your UIM coverage pays the additional $85,000 (up to your limits). You must exhaust the at-fault driver's policy first.
🚗 Hit-and-Run (Unknown Driver)
▼Hit-and-run accidents are treated as uninsured motorist claims because the at-fault driver cannot be identified or located. Special rules apply: you must report to police within 24 hours and file with your insurer within 30 days. Physical contact with the fleeing vehicle is not required in California.
📝 Lapsed or Invalid Insurance
▼If the at-fault driver's insurance was cancelled for non-payment, had lapsed, or the policy excluded the driver, they are treated as uninsured. Your UM coverage applies even if the other driver believed they had insurance.
⚖ Legal Basis
California has comprehensive statutory requirements for UM/UIM coverage. Understanding these laws is essential for pursuing your claim.
Key California Insurance Code Sections
California Insurance Code 11580.2
The primary UM/UIM statute. Requires all California auto policies to include UM coverage unless specifically waived in writing. Sets minimum coverage requirements and defines when coverage applies. Mandates that insurers offer UIM coverage equal to liability limits.
Insurance Code 11580.2(a)(1) - UM Coverage Trigger
UM coverage applies when: (1) the at-fault driver is uninsured, (2) the at-fault driver's insurer is insolvent, (3) the at-fault driver is a hit-and-run driver, or (4) the at-fault driver's insurance denies coverage.
Insurance Code 11580.2(p) - UIM Exhaustion Requirement
Before making a UIM claim, you must exhaust (collect) the at-fault driver's full policy limits. Your insurer must consent before you settle with the at-fault driver's insurer, or you may waive your UIM claim.
Insurance Code 11580.2(f) - Arbitration
If you and your insurer cannot agree on the amount of damages, either party can demand binding arbitration. The arbitration is conducted under California Code of Civil Procedure 1280-1294.2. Each party selects an arbitrator, and those two select a third neutral arbitrator.
Stacking UM/UIM Coverage
California allows "stacking" of UM/UIM coverage in certain situations:
🚗 Multiple Vehicles on One Policy
▼If you have multiple vehicles insured on the same policy, you may be able to stack the UM/UIM limits. For example, if you have two cars with $100K UM each, you might access $200K in coverage. Review your policy's stacking provisions - some policies contain anti-stacking clauses.
🏠 Multiple Policies (Household)
▼You may have access to UM/UIM coverage from multiple policies: your own policy, the vehicle owner's policy (if you were a passenger), and potentially household members' policies if you are a resident relative. Each policy may provide additional coverage.
👤 As a Pedestrian or Cyclist
▼If you were hit by an uninsured driver while walking or cycling, your own auto insurance UM coverage still applies. You are covered as a "named insured" even when not in a vehicle. This is one of the most valuable aspects of UM coverage.
💡 Get Insurer Consent Before Settling
If you have a UIM claim, you must notify your own insurer before settling with the at-fault driver's insurance. Under Insurance Code 11580.2(p)(4), if you settle without consent, your UIM insurer can reduce your UIM recovery by the amount you could have collected (not just what you did collect). Always send a "consent to settle" letter.
📝 Key Elements to Prove
UM/UIM claims require proving specific elements to your own insurance company:
1️⃣ UM/UIM Coverage Applies
▼Confirm you have UM/UIM coverage and establish the limits. Obtain your declarations page showing coverage amounts. For UIM claims, prove the at-fault driver's policy limits and that your damages exceed those limits.
2️⃣ At-Fault Driver Was Uninsured/Underinsured
▼Document that the at-fault driver had no insurance, insufficient insurance, or cannot be identified (hit-and-run). For UIM claims, obtain the at-fault driver's policy declarations showing their limits. For hit-and-runs, the police report and your sworn statement establish the claim.
3️⃣ The Other Driver Was At Fault
▼Unlike third-party claims, your own insurer will scrutinize liability. You must prove the uninsured/underinsured driver was negligent and caused your injuries. The police report, witness statements, and accident reconstruction may be needed.
4️⃣ Your Damages
▼Document all damages exactly as you would in a third-party claim: medical expenses, lost wages, pain and suffering, property damage. Your own insurer may dispute the extent of damages more aggressively than a third-party insurer would.
Special Rules for Hit-and-Run Claims
⏱ Report to Police Within 24 Hours
You must report the hit-and-run to police within 24 hours of the accident. Failure to report timely can void your UM claim.
📝 Notice to Insurer Within 30 Days
Provide written notice to your UM insurer within 30 days describing the accident. This deadline is strictly enforced.
🚗 Physical Contact Not Required
California does not require physical contact with the hit-and-run vehicle. "Phantom vehicle" claims are covered if you can establish the other driver caused your accident.
💰 Damages
UM/UIM coverage pays for the same damages you could recover in a lawsuit against the at-fault driver:
| Category | Description |
|---|---|
| Medical Expenses | All past and future medical treatment related to accident injuries |
| Lost Wages | Income lost during recovery, including sick days and PTO used |
| Loss of Earning Capacity | Reduced ability to earn income due to permanent injury |
| Pain and Suffering | Physical pain, discomfort, and inconvenience from injuries |
| Emotional Distress | Anxiety, depression, PTSD, and psychological trauma |
| Loss of Enjoyment | Inability to participate in activities and hobbies you enjoyed |
⚠ UM/UIM Does NOT Cover Property Damage (Usually)
Standard UM/UIM coverage is for bodily injury only. Uninsured motorist property damage (UMPD) is separate coverage with a $3,500 maximum unless you have collision coverage. If hit by an uninsured driver, use your collision coverage for vehicle damage, not UMPD.
Interactive UM/UIM Recovery Calculator
Calculate your potential recovery under UM (uninsured) or UIM (underinsured) coverage. Click any result row for a detailed explanation.
🚗 Calculate Your UM/UIM Claim
Leave at 0 for UM claims
📊 Sample UIM Calculation
Example: At-fault driver has $15K policy; Your UIM limits are $100K
💡 UIM Offset Calculation
California uses an "offset" method for UIM. Your UIM limits are reduced by the at-fault driver's limits. If you have $100K UIM and they have $15K liability, you have access to $85K in UIM coverage ($100K - $15K). Some states use "gap" coverage instead.
✅ Evidence Checklist
UM/UIM claims require thorough documentation because you are making a first-party claim against your own insurer:
📄 Insurance Documentation
- ✓ Your policy declarations page (UM/UIM limits)
- ✓ At-fault driver's insurance info (or proof of none)
- ✓ At-fault driver's policy limits (for UIM)
- ✓ Settlement documents from at-fault insurer (UIM)
- ✓ Copy of consent-to-settle letter and response
🚗 Accident Documentation
- ✓ Police report (mandatory for hit-and-run)
- ✓ Photos of vehicle damage
- ✓ Photos of accident scene
- ✓ Witness contact information and statements
- ✓ Dashcam footage (if available)
💉 Medical Records
- ✓ Emergency room records
- ✓ All treating physician records
- ✓ Physical therapy records
- ✓ Imaging results (X-ray, MRI, CT)
- ✓ Prognosis letter from treating physician
💰 Financial Documentation
- ✓ All medical bills (itemized)
- ✓ Proof of lost wages (pay stubs, employer letter)
- ✓ Tax returns (if self-employed)
- ✓ Out-of-pocket expense receipts
🔒 Document the At-Fault Driver's Insurance Status
Obtain written confirmation from the at-fault driver's insurer of their policy limits (or lack of insurance). For hit-and-runs, document your efforts to identify the driver. Your insurer will require proof that UM/UIM coverage is triggered.
📝 Sample Language
I use these paragraphs when drafting UM/UIM demand letters. Customize for your specific situation.
I am writing to request your consent to settle with the at-fault driver's insurance carrier. [AT-FAULT DRIVER'S INSURER] has offered to tender their full policy limits of [$AMOUNT] in exchange for a release of [AT-FAULT DRIVER] only. This settlement will not affect my UIM claim against my own policy.
Pursuant to Insurance Code 11580.2(p)(4), I request your written consent to accept this settlement within fifteen (15) days. If you do not consent, please advise whether you elect to pay the offered amount and pursue subrogation, or waive any right to offset based on this amount. Your failure to respond within 15 days will be deemed consent.
🚀 Next Steps
After sending your UM/UIM demand letter, here is what to expect.
UM/UIM Claim Timeline
Days 1-15
Insurer acknowledges claim, assigns adjuster, verifies coverage applies
Days 15-30
Adjuster reviews demand, medical records, and liability evidence. May request additional documentation.
Days 30-60
Initial response and negotiation. Your own insurer may be more adversarial than a third-party claim.
Days 60-90+
Settlement or proceed to arbitration if cannot agree on damages amount.
UM/UIM Arbitration Process
If you cannot agree on damages, either party can demand binding arbitration under Insurance Code 11580.2(f):
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Demand Arbitration
Either party sends written demand for arbitration to the other. This triggers the arbitration process.
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Select Arbitrators
Each party selects one arbitrator. The two selected arbitrators choose a third neutral arbitrator. If they cannot agree, the court appoints the third arbitrator.
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Arbitration Hearing
The arbitration panel hears evidence and argument from both sides. Rules are more relaxed than court but both sides can present witnesses and documents.
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Binding Award
The arbitration award is binding. Limited grounds for appeal exist. The award is typically entered as a judgment.
📅 Statute of Limitations
California has a 2-year statute of limitations for UM/UIM claims (CCP 335.1), starting from the date of the accident. However, your policy may have a shorter contractual limitations period. File your demand well before any deadline expires, and demand arbitration if negotiations stall.
⚠ Bad Faith Claims
If your insurer unreasonably delays, denies, or underpays your UM/UIM claim, you may have a bad faith claim. First-party bad faith can result in damages beyond your policy limits, including emotional distress and punitive damages. Document all communications and delays.
Need Help With Your UM/UIM Claim?
UM/UIM claims against your own insurer can be contentious. I offer a 30-minute strategy call to evaluate your case and explain your options.
Book Consultation - $125California Resources
- CA Dept. of Insurance: insurance.ca.gov - File complaints about insurer conduct
- Insurance Code 11580.2: Full text of UM/UIM requirements
- State Bar Lawyer Referral: calbar.ca.gov - Find a personal injury attorney
- AAA Arbitration: adr.org - Alternative arbitration administrator