Uninsured and Underinsured Motorist Coverage Explained

Your liability insurance protects other people when you cause a crash. But what protects you when someone else causes a crash and has no insurance, or far too little? That's the job of uninsured motorist (UM) and underinsured motorist (UIM) coverage. It's one of the most valuable and most overlooked parts of an auto policy. The Insurance Information Institute tracks estimates of uninsured drivers by state: Triple-I – Uninsured motorists.

What UM and UIM cover

• Uninsured motorist bodily injury (UMBI): pays for injuries to you and your passengers caused by an at-fault driver who has no liability insurance, including many hit-and-run situations.
• Underinsured motorist bodily injury (UIM): pays when the at-fault driver has insurance, but not enough to cover your injuries. Many state minimums are low; see our minimum car insurance by state table.
• Uninsured motorist property damage (UMPD): in some states, pays for damage to your car caused by an uninsured driver.

UM/UIM bodily injury can cover medical bills, lost wages, and pain and suffering, up to your limit, as if the at-fault driver had adequate insurance.

Who it protects

UM/UIM coverage typically protects you and household family members, whether in your car, someone else's car, and in many states even as a pedestrian or cyclist. Passengers in your car are usually covered too. Check your policy's definition of "insured."

How much should you carry?

Many advisors suggest matching UM/UIM limits to your liability limits. If you'd want $250,000 of protection for someone you injure, you probably want at least that much for your own family. Factors:

• Your health insurance deductibles and coverage
• Your income and how long you could be out of work
• Whether you have disability income insurance
• Whether your umbrella policy offers UM/UIM coverage (some do, as an option)

See our umbrella guide for how UM/UIM can extend above auto limits.

California rules

• California insurers must offer uninsured motorist coverage with every auto liability policy. You can reject it or choose lower limits only by signing a written waiver (Insurance Code §11580.2): California Legislative Information – Insurance Code §11580.2.
• California's uninsured motorist property damage coverage is limited (commonly up to $3,500) and generally applies when the uninsured driver is identified. If you carry collision coverage, UMPD may be used to cover your collision deductible.
• California's UIM is generally "reduction" coverage: the UIM amount payable is reduced by what the at-fault driver's insurer pays. For example, with $100,000 UIM and an at-fault driver with $30,000 of coverage, UIM could pay up to $70,000 more.
• California's minimum liability limits are 30/60/15: California DMV – Insurance requirements.

Hit-and-run crashes

UM coverage often applies to hit-and-run crashes, but policies and state laws may require:

• Prompt reporting to police (often within 24 hours or a set period)
• Prompt notice to your insurer
• In some cases, physical contact with the hit-and-run vehicle or independent corroboration

Report immediately and gather witness information. See our guide on what to do after a car accident in California.

UM property damage vs. collision coverage

• Collision coverage pays for damage to your car regardless of fault, minus your deductible. If an uninsured driver hits you, collision pays, and you may be able to recover the deductible through UMPD.
• UMPD pays only for damage caused by identified uninsured drivers, with limits and deductibles depending on the state.

If you drive an older car without collision coverage, UMPD may be your main protection for damage caused by uninsured drivers.

Stacking

Some states allow stacking, which combines UM/UIM limits across multiple vehicles or policies. For example, $50,000 per vehicle on three cars could become $150,000. Other states prohibit stacking or allow insurers to restrict it. Stacking rules vary widely; ask your broker how they apply where you live.

Rideshare and delivery

California requires transportation network companies to provide UM/UIM coverage while a passenger is in the car. While you're waiting for ride requests, your own UM/UIM may be your main protection. See our rideshare and delivery driver guide.

Common misconceptions

• "My health insurance covers me." Health insurance may cover medical bills, but not lost income or pain and suffering, and your plan may seek reimbursement from any settlement.
• "I have full coverage." "Full coverage" usually means liability, collision and comprehensive. UM/UIM may be missing or set at low limits.
• "It's expensive." UM/UIM is often a modest part of the premium compared with the protection it offers. Ask for a quote at several limits.

UM/UIM checklist

• ☐ Find your UM/UIM limits on your declarations page
• ☐ Consider matching them to your liability limits
• ☐ Ask about UMPD and how it interacts with collision
• ☐ Ask whether your umbrella offers UM/UIM
• ☐ Know the hit-and-run reporting requirements
• ☐ Ask about stacking rules in your state
• ☐ Don't sign a waiver without understanding what you're giving up

Learn to read your policy in our declarations page guide. Contact Alishahi Insurance or call (877) 711-4545.

Frequently asked questions

Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.