What is uninsured/underinsured motorist coverage?

Uninsured/underinsured motorist (UM/UIM) coverage is a type of insurance coverage available in California that provides financial protection to drivers in case of an accident involving an uninsured or underinsured driver. This type of coverage is designed to protect victims who are injured or suffer property damage in accidents that are caused by another party who has either no insurance coverage, or inadequate coverage to pay the full value of their losses. Basically, if you are involved in a car accident in California and the other party is either completely uninsured or has insufficient coverage, UM/UIM coverage will cover the difference between the other party’s limited coverage and the full value of your damages, up to the limit of your policy. Your personal auto insurance policy will generally include UM/UIM coverage unless you have specifically declined it in writing. If you have UM/UIM coverage in place and you get into a car accident with an uninsured motorist, your policy will pay for the difference between your actual damages and the other driver’s limited coverage, up to the limits of your policy. In addition, UM/UIM coverage also provides protection in cases of hit and run accidents, where the at-fault driver cannot be identified. In such cases, your UM/UIM coverage will kick in to provide you with the needed financial protection. Overall, having UM/UIM coverage in place is a wise decision, as California laws require that all drivers carry some form of insurance. By having this coverage, you can make sure that you are financially protected in the event of an accident with someone who is uninsured or underinsured.

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What is uninsured/underinsured motorist coverage?

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