Setareh Law
June 1, 2026
Uninsured motorist (UM) coverage applies when the driver who hits you has no insurance at all. Underinsured motorist (UIM) coverage applies when that driver has insurance, but their policy limits aren’t enough to pay for your injuries or losses. Both protections exist because California law only sets a floor on what drivers must carry — and that floor is far lower than what a serious accident actually costs.
California requires all drivers to carry liability insurance, yet roughly one in seven drivers on the road still has no coverage, according to the Insurance Information Institute. At Setareh Law, we help accident victims throughout California pursue every available source of compensation — including UM and UIM claims — when the at-fault driver’s insurance falls short or doesn’t exist.
What Uninsured Motorist Coverage Pays For
When a driver with no insurance causes your accident, there is no liability policy to file a claim against. Your only paths forward are suing the at-fault driver personally — which rarely results in meaningful recovery — or filing a claim through your own uninsured motorist coverage.
UM coverage can pay for:
- Medical expenses: Hospital bills, surgery, physical therapy, and ongoing care
- Lost wages: Income you couldn’t earn while recovering from your injuries
- Property damage: Repair or replacement costs for your vehicle
- Pain and suffering: Compensation for physical pain and emotional distress
These benefits pay up to your policy’s UM limit, not the at-fault driver’s — because the at-fault driver has none. California law requires insurance companies to offer UM coverage to every policyholder, though drivers may waive it in writing.
What Underinsured Motorist Coverage Pays For
UIM coverage steps in when the other driver has insurance, but not enough. California’s required minimums are $15,000 per person and $30,000 per accident in bodily injury liability. A single emergency room visit for a moderate injury can easily exceed that amount before any follow-up care, imaging, or lost income is factored in.
If you sustain $80,000 in medical bills and the at-fault driver carries only $15,000 in coverage, their insurer pays $15,000. Your UIM coverage may pay the remaining $65,000, up to your own policy limit. To make a UIM claim, you generally must first exhaust the at-fault driver’s policy before your own coverage kicks in.
Like UM coverage, California insurers must offer UIM protection, but they are permitted to let you waive it — which is why many drivers discover they don’t have it until after an accident occurs.
Key Differences Between UM and UIM Claims
The practical difference between the two comes down to whether the other driver has any insurance at all:
- Uninsured motorist claim: The at-fault driver has zero insurance. You file one claim directly against your own UM policy.
- Underinsured motorist claim: The at-fault driver has some insurance, but not enough. You file against their policy first, then file a UIM claim with your own insurer for the remaining damages.
Both types of claims are made against your own insurance company, not the at-fault driver’s. This matters because your insurer has strong incentives to limit what it pays — even to its own policyholders. That dynamic is one of the most common reasons these claims become contested.
California’s Uninsured Driver Problem
In 2023, more than one in seven drivers nationally — 15.4 percent — were uninsured, according to a 2025 study by the Insurance Research Council. California’s dense urban roads and high cost of living contribute to significant uninsured driving rates throughout the state.
Beyond uninsured drivers, many more carry only minimum-limits coverage. California’s required $15,000 per person limit was set decades ago and has not kept pace with the actual cost of medical care. A driver who carries the minimum and causes a serious accident exhausts their entire policy with a single hospital admission. That gap falls on the injured party unless UIM coverage is in place.
What to Do If You Were Hit by an Uninsured or Underinsured Driver
If you’ve already been in an accident with an uninsured or underinsured driver, the steps you take now affect your ability to recover full compensation.
First, notify your own insurance company and open a UM or UIM claim. Do not wait. Most policies have notice requirements, and missing them can affect your coverage.
Second, avoid accepting any early settlement offer before the full extent of your injuries is known. UIM claims in particular are resolved after medical treatment is complete, not before. Settling too soon may leave you unable to recover costs for ongoing care or long-term losses.
Third, consider speaking with a car accident attorney before your insurer determines the value of your claim. When an insurer disputes the amount owed under a UM or UIM policy, legal representation makes a measurable difference in outcomes. Your personal injury attorney can handle all communications with the insurer, gather the medical and economic evidence needed to support your claim, and challenge lowball settlement offers.
Get Help With Your UM or UIM Claim at Setareh Law
Insurance companies sometimes dispute UM and UIM claims or offer settlements well below the actual value of your injuries. The attorneys at Setareh Law have recovered over $250 million for California accident victims, including significant settlements in uninsured and underinsured motorist cases. With 60 years of combined experience and over 400 five-star Google reviews, our team knows how to handle insurers who try to minimize what they owe their own policyholders.
We handle all cases on a contingency fee basis, so there is no cost to you unless we recover compensation. If you were hit by an uninsured or underinsured driver in California, contact us through our contact form for a free consultation.
