Setareh Law
December 4, 2025
California law requires all drivers to carry minimum liability insurance, but thousands of motorists still drive without adequate coverage or no insurance at all. Understanding the difference between underinsured motorist coverage and uninsured motorist coverage can mean the difference between full compensation for your injuries and facing thousands of dollars in unpaid medical bills after an accident.
When accidents involve drivers who lack sufficient insurance, victims often discover too late they needed additional protection on their own policies. At Setareh Law, we help California accident victims navigate insurance claims and pursue every available source of compensation, whether through the at-fault driver’s policy, your own coverage, or legal action.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage protects you when a driver with no insurance causes an accident that injures you or damages your vehicle. This coverage kicks in when the at-fault driver has zero insurance, when you’re hit by an unknown driver in a hit-and-run accident, or when the other driver’s insurance company denies their claim. California law requires insurance companies to offer uninsured motorist coverage to all policyholders, though you can reject it in writing.
Without this protection, you would need to pursue compensation directly from the at-fault driver’s personal assets, which often proves difficult or impossible. Most uninsured drivers lack the financial resources to pay for the damage they cause. Your uninsured motorist coverage steps in to pay for medical expenses, lost wages, property damage, and pain and suffering up to your policy limits when the responsible driver has no insurance to cover your losses.
Understanding Underinsured Motorist Coverage?
Underinsured motorist coverage provides additional compensation when the at-fault driver carries insurance, but their policy limits don’t cover your full damages. California only requires drivers to carry $15,000 per person and $30,000 per accident in bodily injury liability coverage. These minimum amounts rarely cover serious injuries from car accidents, truck accidents, or motorcycle accidents.
If you sustain $75,000 in medical bills and lost income, but the at-fault driver only carries $15,000 in coverage, your underinsured motorist coverage can pay the remaining $60,000. This protection ensures you receive fair compensation even when the responsible party’s insurance falls short. Like uninsured motorist coverage, California insurers must offer underinsured protection, though policyholders can decline it with a written rejection.
How These Motorist Coverage Types Work Together
Both coverage types function similarly but activate under different circumstances. Your uninsured motorist coverage responds when the other driver has no insurance whatsoever, while underinsured motorist coverage supplements an existing but insufficient insurance policy. Many California insurers combine these protections into a single coverage option called uninsured/underinsured motorist coverage, or UM/UIM.
When you file a claim under either coverage type, you’re making a claim against your own insurance company, not the at-fault driver’s insurer. This means your insurance company investigates the accident, evaluates your damages, and determines payment under your policy terms. The process involves proving the other driver caused the accident, demonstrating the extent of your injuries and losses, and showing the at-fault driver’s insurance was absent or inadequate. Your insurance company may seek reimbursement from the at-fault driver after paying your claim.
Why These Coverage Options Matter in California
California’s roads see a high percentage of uninsured and underinsured drivers. The Insurance Research Council estimates that roughly one in six California drivers operates a vehicle without required insurance coverage. Even among insured drivers, many carry only minimum liability limits that won’t fully compensate serious injury victims. A severe accident can generate hundreds of thousands in medical costs, rehabilitation expenses, and lost earning capacity.
Standard liability coverage protects the at-fault driver from lawsuits, but it does nothing for you if they lack adequate limits. Your UM/UIM coverage protects your financial future when others make irresponsible choices about insurance. This coverage also protects passengers in your vehicle, family members injured while riding in other cars, and sometimes pedestrians struck by uninsured or underinsured drivers. The relatively low cost of adding or increasing UM/UIM coverage provides substantial financial protection against scenarios that occur far more frequently than most drivers expect.
Get Help With Your Underinsured or Uninsured Motorist Claim With Setareh Law
Insurance companies sometimes dispute UM/UIM claims or offer settlements below your actual damages. The personal injury attorneys at Setareh Law have recovered over $250 million for California accident victims, including substantial settlements in uninsured and underinsured motorist cases. Our team brings 60 years of combined experience negotiating with insurance companies that try to minimize payouts, even to their own policyholders. We’ve earned more than 400 five-star reviews by making ourselves available to clients around the clock and fighting for maximum compensation in every case.
We handle all personal injury cases on a contingency fee basis, so you pay nothing unless we recover compensation for your injuries. If another driver’s lack of insurance or inadequate coverage threatens your financial recovery, we can help you pursue every available source of compensation. Contact us today for a free consultation about your uninsured or underinsured motorist claim.
