In California, drivers are required to carry liability insurance to protect others in the event that they cause an accident that leads to serious injuries. However, the state’s minimum liability insurance requirements aren’t always enough to cover 100% of accident victims’ damages. When this is the case, underinsured motorist coverage in Orange County can make up the difference.

What Is Underinsured Motorist Coverage?

Underinsured motorist (UIM) coverage is designed to make up the difference in accident cases where the liable driver does not have sufficient insurance coverage to pay for all the accident victim’s damages. It bridges the gap when the value of your losses from your accident-related injury exceeds the at-fault driver’s policy limit.

Because an underinsured motorist claim operates as a specialized personal injury claim under California law, consulting a dedicated personal injury lawyer ensures your full losses are properly calculated.

Let’s take a look at an example. California’s minimum liability insurance requirements stipulate that drivers must carry at least $30,000 per person and $60,000 per accident in liability coverage. If you get into an accident with a driver who has only the minimum coverage amount and your injuries cost you $50,000 in medical bills and other related losses, you ordinarily would need to cover the $20,000 difference out-of-pocket.

If you have UIM coverage, your insurance policy could cover the difference between the $30,000 provided by the liable driver’s insurance policy and your total amount of accident-related losses following a car accident in Orange County.

Timeline of a UIM Claim

It can take some time to determine whether you need to file an underinsured motorist accident claim. Most underinsured motorist accident cases begin several weeks to months after an accident itself. The timeline of a typical uninsured motorist accident case is detailed below:

  • The crash. When the crash occurs, you and the other involved parties exchange insurance information and report the accident to your own insurance company.
  • Coverage confirmation. You learn that the driver’s insurance policy coverage limits are low, and they may not cover 100% of your damages.
  • Determination of treatment and losses. Your medical bills, lost wages, and other accident-related losses accumulate over weeks or months until they exceed the liable driver’s policy limits.
  • Exhaustion of Policy. When the liable driver’s policy limit is reached, you collect against it. This identifies a coverage gap.
  • Filing of a UIM claim. Once the liable driver’s policy has been exhausted, you file a UIM claim with your own insurance company to bridge the gap between their policy limit and your total losses.
  • The settlement. Your insurer evaluates your claim and negotiates a settlement. Having an Orange County underinsured motorist accident attorney can make it easier to negotiate a fair settlement.

It doesn’t matter whether you go to UCI Medical Center or Providence St. Joseph Hospital for care. Whether your injury stems from a passenger car collision or a motorcycle accident in Orange County, your hospital bills could be covered by your UIM policy. It’s essential that you work with an experienced attorney to negotiate a settlement, as insurance companies are known to make low offers. This is just as true of UIM providers covering their own customers as it is of liability providers covering other injured parties.

The Potential for Arbitration

In fault-based accident claims, cases that can’t be settled via negotiations typically go to court. That’s rarely the case with UIM claims. Instead, your policy may require that you resolve any dispute over how much money you are owed through the arbitration process.

Arbitrators can decide on issues, such as whether the policyholder is entitled to recover compensation under their insurance policy and how much they should receive for their injuries. Even if your crash involved a pedestrian accident in Orange County, you can still benefit from working with an attorney during the arbitration process just as much as you can during a jury trial.

Why Choose Us?

When choosing a lawyer, turn to the experienced team at Easton & Easton. Our family-owned firm treats every case with the seriousness it deserves. We are used to working with drivers and their families to protect their rights and interests when serious accidents disrupt their financial stability. We’ve recovered over $2 billion in settlements for other clients.*

FAQs

Q: How Does UIM Coverage Work in California?

A: UIM coverage works in California by paying the difference between the underinsured driver’s payout and your total UIM limit. As a result, it’s also referred to sometimes as “difference-in-limits” insurance. UIM generally covers medical bills, lost wages, and noneconomic damages like pain and suffering. Property damage is generally covered under underinsured motorist property damage policies.

Q: Is UM/UIM Coverage Worth It?

A: UM/UIM coverage can be worth it if you get into an accident with an uninsured or underinsured motorist. This coverage can protect you and your passengers from potential financial ruin should you be hit by a driver who doesn’t have enough insurance to pay for your medical bills, lost wages, and other damages. In 2023, 20.4% of Californian drivers didn’t have car insurance policies, so the likelihood of getting into a crash with an uninsured person is high.

Q: What Is a Good Amount of Underinsured Motorist Coverage?

A: A good amount of underinsured motorist coverage mirrors your liability coverage. If you carry 250/500 limits to protect personal assets, you might also want to purchase 250/500 UIM coverage. However, it is recommended that you keep liability and UIM limits on your policy at 100/300. It all depends on your personal risk tolerance.

Q: Does California Require UM/UIM Coverage?

A: California does not require UM/UIM coverage. However, California uninsured motorist accident laws require insurance companies to provide drivers with the option of taking uninsured motorist and underinsured motorist coverage. If you do not want this type of insurance coverage, you are required by law to explicitly reject it in writing.

Hire an Underinsured Motorist Accident Lawyer

Getting into an accident is always stressful. If you’ve been injured in a crash with someone who doesn’t have a sufficient insurance policy to cover 100% of your damages, you could be in an even worse position. Many Californian drivers prepare for this potential scenario by carrying UIM protection, but insurance companies aren’t always quick to pay out.

If you’re having difficulty getting your insurance company to pay out according to your policy limits, you can hire an underinsured motorist accident lawyer to help you negotiate a fair settlement. Let Easton & Easton help you get a full recovery. Contact us to schedule an initial consultation today.

**Past results do not guarantee a similar outcome. Every case is different.