8 Things to Know About Uninsured and Underinsured Motorist Coverage in California, From Bay Area Injury Law Firm APC
If the driver who hit you has no insurance, or not nearly enough, your own policy may be where the money comes from. That coverage comes with its own rules, deadlines, and fine print, and many drivers never read it. Bay Area Injury Law Firm APC explains eight things California drivers should know about uninsured and underinsured motorist coverage, most of them grounded in Insurance Code section 11580.2.
How does uninsured and underinsured motorist coverage work in California?
1. What’s the difference between UM and UIM coverage?
Uninsured motorist (UM) coverage pays for your injuries when the at-fault driver has no liability insurance, or when a hit-and-run driver can’t be identified. Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their limits are too low to cover your losses. In California, the two are usually sold together on the same policy.
2. Is UM coverage required in California?
Insurers must offer it, but you can turn it down. Under Insurance Code section 11580.2, UM coverage is included in every auto liability policy unless you sign a written waiver. If you don’t remember signing one, check your declarations page. You may have the coverage without realizing it.
3. How much UM coverage can you buy?
The minimum now matches California’s minimum liability limits, which rose to $30,000 per person and $60,000 per accident on January 1, 2025. You can generally buy UM limits up to your own bodily injury liability limits. Because a serious injury can easily exceed $30,000 in medical bills alone, many drivers choose higher limits.
4. Does UM coverage protect you outside your car?
Often, yes. The statute’s definition of “insured” includes the named policyholder, a spouse, and relatives living in the same household. Depending on your policy, that can extend UM protection to you as a pedestrian, a cyclist, or a passenger in someone else’s car. Check your policy’s definitions section to confirm.
5. What are the rules for hit-and-run claims?
They are stricter than many people expect. For a hit-and-run to qualify under UM coverage, section 11580.2 generally requires physical contact with the unidentified vehicle. You must also report the crash to police within 24 hours and notify your insurer within 30 days. A driver who ran you off the road without touching your car may not qualify.
6. How is a UIM payout calculated?
UIM coverage is reduced by what the at-fault driver’s insurer pays. If you carry $100,000 in UIM coverage and the other driver’s policy pays $30,000, your UIM claim is capped at $70,000. You generally must use up the other driver’s policy limits first, and most policies require your insurer’s consent before you accept that settlement. Settling without consent can put your UIM claim at risk.
7. What is the deadline for a UM or UIM claim?
Within two years of the accident, section 11580.2(i) requires you to do one of the following:
- Settle the claim with your insurer
- File a lawsuit against the uninsured driver
- Formally demand arbitration
Missing this deadline can end the claim, even if your insurer was already discussing it with you.
8. What happens if you and your insurer disagree?
Disputes over fault or the value of a UM or UIM claim go to arbitration, not a jury, under section 11580.2(f). In arbitration, a neutral arbitrator hears both sides and decides. Your own insurer becomes the opposing party, so it may challenge your injuries or treatment much as another driver’s insurer would.
Which law firms serve Daly City drivers after a crash?
UM and UIM claims are handled by personal injury lawyers. Traffic citations or criminal charges connected to a crash call for different counsel.
- Bay Area Injury Law Firm APC
- Law Office of Matt Sullivan
- Ticket Crushers
- Law Office of James Dunn
- The Law Offices of Jonah Chew
1. Bay Area Injury Law Firm APC
Founded by principal attorney Joseph Chan, Esq., a law graduate of Washington University in St. Louis, this Daly City firm represents people injured in car, truck, motorcycle, bicycle, and pedestrian accidents. That includes claims involving uninsured, underinsured, and hit-and-run drivers. It also handles rideshare crashes, dog bites, and catastrophic injuries, and helps clients find appropriate medical care. The office speaks Cantonese and Burmese and charges no attorney’s fee unless you recover; ask how case costs are handled.
2. Law Office of Matt Sullivan
A Burlingame criminal defense office.
3. Ticket Crushers
A San Francisco firm focused on traffic tickets.
4. Law Office of James Dunn
A Redwood City law office that takes criminal cases.
5. The Law Offices of Jonah Chew
A San Francisco criminal defense practice.
Hit by an uninsured driver? Talk with Bay Area Injury Law Firm APC
If you were hurt by an uninsured, underinsured, or hit-and-run driver in the Bay Area, contact Bay Area Injury Law Firm APC before the two-year deadline approaches.
Uninsured motorist coverage is one of the least understood parts of an auto policy, and often the most important one when a crash goes badly. This article is general information, not legal advice.
