Discovering the other driver lacks insurance adds significant stress to a crash. You might exchange information with them, or find they fled the scene, and later learn they have no coverage.
If the at-fault driver cannot pay for medical bills, lost wages, and vehicle repairs, you may wonder if you are responsible for the costs. In California, specific insurance provisions cover these situations.
Uninsured Motorist Coverage (UM)
The primary source of recovery in these accidents is often your own insurance policy. Uninsured Motorist Bodily Injury (UMBI) coverage essentially replaces the at-fault driver’s insurance. Your carrier pays for your losses up to your policy limits.
Many drivers hesitate to file a claim with their own provider because they fear rate increases. However, California law generally prohibits insurers from raising your premiums if you use your uninsured motorist coverage for an accident where you were not at fault. This coverage typically extends to:
- Drivers involved in a collision with an uninsured driver
- Victims of hit-and-run accidents where the driver cannot be identified (requires physical contact with the uninsured vehicle and a police report)
- Cyclists or pedestrians struck by uninsured motorists, provided the victim has an auto policy
While UM applies when the other driver has zero insurance, different coverage applies when the at-fault driver lacks sufficient coverage.
Underinsured Motorist Coverage (UIM)
Sometimes, the at-fault driver has insurance, but their policy limits are too low to cover your injuries. This frequently happens in severe accidents involving surgeries or long-term care. In these instances, Underinsured Motorist coverage pays the difference between your own UIM policy limit and the at-fault driver’s liability limit.
Dealing with your own insurer
Filing a UM or UIM claim means your own insurance company becomes the opposing party. While you pay premiums to them, their goal is often to minimize the payout. Understanding your policy language helps confirm you receive the benefits you paid for.