Uninsured/Underinsured Motorist Claims

What is an uninsured motorist claim?

Let’s say a person has been in a serious car accident that was not his or her fault, and the driver that hit the injured party’s car is uninsured. Can the injured party still recover for injuries sustained? In most cases, yes. The catch, however, is that the injured party would likely file a claim under his or her own insurance policy rather than against the uninsured driver in what is referred to as an uninsured motorist claim (“UM”).

In California, drivers are not required to have UM coverage, but it’s included by default in all policies unless the driver opts out. Such coverage helps cover damages sustained when the at-fault driver has no insurance.

What is an underinsured motorist claim?

Whereas uninsured motorist coverage protects an injured party if he or she is hit by a driver who has no auto insurance, underinsured motorist protects an injured party if the party was hit by a driver who doesn’t have enough coverage to pay for the damages or injuries caused. Underinsured motorist (“UIM”) coverage is usually offered alongside uninsured motorist coverage and underinsured claims are often included within the definition of uninsured claims. 

Expanding on the example above, let’s say the at-fault driver has insurance coverage for $15,000 for the injury or death of one person. Let’s also say the injured party’s medical bills far exceed that amount, and the injured party’s underinsured policy limit is $50,000.

Generally, the injured party must seek to recover the $15,000 policy limit from the at-fault party’s insurance company before making an underinsured motorist claim with his or her own insurance company. Upon recovery, the injured party may then make an underinsured motorist claim for up to the remaining $35,000.    

Are UM/UIM claims common?

It is mandatory for drivers to have liability coverage in California. Despite the law, some studies have shown that as many as 16% of California drivers are uninsured, and there may be as many as 28 million uninsured drivers nationwide.

In California, the minimum amount of coverage required is $15,000 for the injury or death of one person and $30,000 per accident if multiple people are injured. There is also a minimum coverage of $5,000 for property damage to other people’s cars, objects, and structures. Given the lower premiums that come with lower coverage, many people opt for that option.

Starting on January 1, 2025, the new minimums for auto coverage will double the current minimums above. The minimum property damage coverage will increase to $15,000.   

Can you still file a UM claim if you were involved in a hit-and-run accident?

In the event of a hit-and-run accident where the at-fault driver is unknown, an injured party may still be able to make a UM claim with his or her own insurer. To be able to do this, the requirements are that the injured party show that the at-fault driver’s vehicle made contact with the injured party’s vehicle, the injured party reported the accident to police within 24 hours of it taking place, and the injured party bring the claim with his or her own insurance policy within 30 days of the accident.

What statutes govern UM/UIM law?

In California, UM/UIM law is governed by the Uninsured Motorist Act (Insurance Code §11580.2 et seq.). The purpose of the law is to ensure that a driver injured by an uninsured or underinsured driver has certain recourse for recovery as if the at-fault driver had sufficient insurance.

How does a UM/UIM claim work?

In a UM/UIM claim, one’s own insurance company becomes the adversary because the injured party is seeking to recover damages from the company rather than the at-fault driver. The claim is litigated in an arbitration proceeding rather than court, where the arbitrator ultimately decides what damages, if any, are awarded. In that regard, the injury party must still prove who was at fault, causation, and what damages he or she suffered from the underlying accident as in any personal injury case.

This process is often complicated and may require testimony from an accident reconstruction expert to establish that the accident was not the insured’s fault and/or a biomechanical expert to establish that the accident caused the injuries claimed. It also usually requires testimony from treating medical providers or other experts to establish the nature and extent of the injuries suffered.

What if you are partially at fault?

California follows a comparative fault system, which means that the injured party’s own negligence or fault will be taken into account when determining compensation. If the injured party is found partially at fault for the accident, compensation may be reduced by his or her percentage of fault. This is true in a UM/UIM claim and may be determined by the arbitrator.

Our Approach

UM/UIM claims are often complicated. Insurance companies tend to undervalue claims because they are businesses seeking to maximize profits, and paying out the full value of claims hurts their bottom line.

Our attorneys will investigate the circumstances surrounding your accident, gather evidence, and work diligently to build a strong case on your behalf. We will handle negotiations with insurance companies and other parties involved to strive for a fair settlement. If a settlement cannot be reached, we are prepared to litigate aggressively to protect your rights.

Why Choose Us?

• Expertise: Our attorneys are knowledgeable in personal injury law and have extensive experience handling car accident cases. We have a thorough understanding of the legal complexities involved and will use our expertise to build a strong case on your behalf.

• Personalized Approach: We believe in providing personalized attention to every client. We understand that each car accident case is unique and requires a tailored approach. Our attorneys will take the time to listen to your concerns, answer your questions, and develop a legal strategy that aligns with your specific needs and goals.

• Proven Track Record: With a successful track record of obtaining favorable outcomes for our clients, you can trust us to handle your case. We have secured significant settlements and verdicts in car accident cases, helping our clients recover compensation for medical expenses, lost wages, pain and suffering, and more.

• Resources and Network: We have access to a wide range of resources and a vast network of experts, including accident reconstructionist, medical professionals, and investigators. We will leverage these connections to strengthen your case and ensure that no stone is left unturned.

• No Fee Unless We Win: We understand the financial strain that can come after a car accident, which is why we generally take personal injury cases on a contingency fee basis. This means that you will not have to pay any upfront fees. You only pay us if we successfully obtain compensation for you, ensuring that you can focus on your recovery without worrying about legal expenses.

Choosing the right attorney after a car accident is crucial. With Phillips, Erlewine, Given & Carlin LLP, you can have confidence that you are selecting a firm that will champion your rights and work tirelessly to achieve the best possible outcome for your case. Contact us today for a free consultation and let us guide you on the path to justice and recovery.

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