Uninsured and underinsured motorist coverage can matter after a crash caused by a driver with no liability insurance or too little insurance. The terms are easy to mix up, and the details on your own declarations page matter more than a general statistic about uninsured drivers.

What are UM and UIM?

California's Department of Insurance (CDI) auto guide distinguishes uninsured motorist bodily injury (UMBI), underinsured motorist coverage (UIM), and uninsured motorist property damage (UMPD). UMBI addresses injuries to you and people in your car after an accident caused by an at-fault uninsured driver. UIM addresses limited bodily injury costs when an at-fault driver has insurance but not enough for the loss. The available payment depends on the policy, limits, other applicable coverage, and claim facts.

UMPD is different: CDI says it pays for damage to your car from an at-fault uninsured driver who is identified, with a $3,500 limit. Ask how UMPD, collision coverage, and any collision deductible waiver interact on your policy. Do not assume a UM bodily injury limit also pays to replace a vehicle.

Is it required?

CDI says an insurer must offer uninsured/underinsured motorist coverage when you buy California auto liability insurance. You can decline it by signing a waiver. Check your declarations page and any signed selection or rejection form to learn which parts and limits you chose. If you cannot find them, ask your insurer or broker for copies.

What limits should you review?

California's current standard auto liability minimum is 30/60/15, but the legal minimum is not a recommendation for every household. Compare the bodily injury UM/UIM limits available to you with your liability limits, other coverage, assets, driving exposure, and budget. Request a written quote for any change. There is no dependable statewide price for increasing UM/UIM limits; the premium depends on your insurer and policy.

What about a hit-and-run?

Report the crash promptly to law enforcement and your insurer. CDI's accident guide notes that policies often set a time limit for reporting a hit-and-run to police. Ask the insurer which coverage may respond to bodily injury, vehicle damage, or a collision deductible, and what proof it requires. UMPD's identified-driver condition means it should not be presented as automatic vehicle-repair coverage for an unknown driver.

Questions to ask before a claim

  • Do I have UMBI, UIM, UMPD, a collision deductible waiver, and collision coverage? What are their limits and terms?
  • Did I sign a waiver or choose a lower limit? Can I get a copy?
  • How would a claim involving an unidentified driver be handled under my issued policy?
  • What would different limits cost for this exact policy?

This is a guide to questions, not a coverage determination. The issued policy and the facts of a loss control the answer. If you want help comparing your declarations page and available options, request a coverage review.

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