Driving in Los Angeles comes with its risks, including the high number of uninsured drivers on the road. If you’re in an accident with an uninsured or underinsured driver, who pays for your medical bills and damages?

This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage come into play. This article explains why UM coverage is crucial in Los Angeles, how it protects you, and what California law says about it.

What is Uninsured Motorist (UM) Coverage?

California’s Uninsured Motorist Act (California Insurance Code Sections 11580.2-11580.5) protects individuals injured by drivers who lack insurance. This law mandates that auto insurance policies include uninsured motorist coverage, which compensates the policyholder for bodily injuries (and in some cases, property damage) caused by an uninsured or hit-and-run driver. It essentially steps in to provide coverage as if the at-fault driver had insurance. This protection applies even if the uninsured motorist is unknown (hit and run). 

Uninsured Motorist (UM) coverage protects you if you are hit by a driver who does not have car insurance. In California, it is an optional form of coverage that can be added to your auto insurance policy.

What is Underinsured Motorist (UIM) Coverage?

Underinsured Motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits are too low to cover your medical bills or vehicle damage.

For example, if a driver only carries the California minimum liability coverage of $30,000 per person and $60,000 per accident, but your medical expenses exceed $50,000, UIM coverage would help bridge the gap.

How Common are Uninsured Drivers in Los Angeles?

According to the Insurance Research Council, approximately 16.6% of drivers in California are uninsured. In major metropolitan areas like Los Angeles, this percentage is even higher due to economic factors and the high cost of auto insurance.

This means if you’re in an accident in LA, there is a significant chance the at-fault driver has no insurance—leaving you financially vulnerable without UM coverage.

What Does UM/UIM Coverage Pay For?

Uninsured/Underinsured Motorist Coverage provides financial protection in multiple ways, covering:

• Medical Expenses – Hospital bills, rehabilitation, surgeries, and physical therapy.
• Lost Wages – If you cannot work due to accident-related injuries.
• Pain and Suffering – Compensation for emotional distress and physical pain.
• Property Damage – Some policies cover damage to your car if hit by an uninsured driver.

California Law on Uninsured Motorist Coverage

California law does not require drivers to carry Uninsured Motorist coverage, but insurance companies must offer it when you purchase a policy.

The California Insurance Code § 11580.2 states that UM/UIM coverage must be explicitly waived in writing if a driver chooses not to purchase it. This ensures that drivers are aware of the risks before opting out.

While UM/UIM coverage is not mandatory, declining it could leave you responsible for thousands of dollars in medical expenses and car repairs if an uninsured driver hits you.

Legal Precedents and Cases Involving Uninsured Motorist Coverage in California

Several California legal cases have highlighted the importance of UM coverage in protecting injured drivers:

• Barnes v. Nationwide Mut. Ins. Co., 230 Cal.Rptr. 800 (Ct.App. 1986):  For uninsured motorist (UM) coverage to apply in California, the insured vehicle must have direct physical contact with the uninsured vehicle itself; contact with an object that fell from the uninsured vehicle is insufficient to meet the “physical contact” requirement, thus limiting UM coverage in situations where the at-fault vehicle doesn’t directly collide with the insured’s vehicle.
•  Hanover Insurance Co. v. Carroll (1966) 241 Cal.App.2d 558: Emphasizes the importance of promptly notifying your insurance company after an accident, even if it seems minor or you’re unsure of fault.  Failing to report an accident within a reasonable time can jeopardize your coverage, including uninsured motorist benefits, potentially leaving you to pay out of pocket for damages.  Understanding these requirements is crucial for protecting your rights and ensuring you receive the coverage you’re entitled to.  If you’ve been in an accident, contact your insurance company immediately and consult with an attorney to understand your options.
• Rudd v. California Casualty General Insurance Co. (1990):  If you’re hurt in a car accident at work by a driver who doesn’t have enough insurance, and you’re also getting workers’ comp, your own underinsured motorist (UIM) coverage might not pay you the full amount. In California, the insurance company can often reduce what they owe you under your UIM coverage by the amount you receive from workers’ compensation. This is because the law tries to avoid you getting paid twice for the same injury – once from workers’ comp and again from your car insurance. So, if you’re in this situation, it’s important to understand how these two types of benefits interact and potentially affect your overall recovery.

These cases emphasize why having UM coverage can be the difference between financial ruin and fair compensation.

What Happens If You Don’t Have UM Coverage?

If you don’t have Uninsured Motorist coverage, your options after an accident with an uninsured driver are very limited:

1. Personal Health Insurance: Your medical insurance may cover some expenses, but it won’t help with lost wages or pain and suffering.
2. Filing a Lawsuit: You can sue the uninsured driver, but most uninsured drivers have no assets, making recovery unlikely.
3. Paying Out of Pocket: Without UM coverage, you may be forced to pay medical bills, car repairs, and other costs yourself.

For these reasons, purchasing UM/UIM coverage is a smart financial decision.

How Much UM/UIM Coverage Should You Buy?

As of January 1, 2025, California law mandates drivers to carry at least $30,000 liability insurance per person for bodily injury or death, and $60,000 per accident. Additionally, the minimum property damage limit is now $15,000.

California drivers also have the option to select their UM/UIM coverage limits at those limits. The minimum UM/UIM coverage under California law is as follows:

• $30,000 per person bodily injury
• $60,000 for bodily injury total per accident
• $15,000 for property damages

But most attorneys and insurance experts recommend the following levels of uninsured motorist in California:

• $100,000 per person / $300,000 per accident for bodily injury coverage.
• $50,000 – $100,000 for property damage coverage.

Higher coverage limits ensure you have adequate protection if seriously injured by an uninsured driver.

Source: California Department of Insurance.

Understanding Single Limit vs. Per Accident Limit in Car Accident Claims

When filing an insurance claim after a car accident, it’s essential to understand how policy limits affect compensation. Insurance policies typically have either:

• Per Person and per Per Accident limits, or
• Single Limit Coverage

Per Person and Per Accident Coverage

Many auto insurance policies in California follow a split limit system, meaning coverage is divided into three categories:

• Per Person Limit: The maximum an insurer will pay for a single injured individual.
• Per Accident Limit: The total amount an insurer will pay for all injured parties combined in a single accident, whether there are 2 or 5 passengers in the car.
• Property Damage Limit: The maximum coverage for vehicle and property repairs.

Example of Split Limits in a Car Accident

If a driver has California’s minimum liability coverage of $30,000/$30,000/$15,000, it means:

• $30,000 per person for bodily injury.
• $60,000 per accident for total bodily injury claims (if multiple people are injured).
• $15,000 for property damage to cover repairs.

Application of Split Policy Limit:

Assume a driver with minimum coverage causes an accident injuring three people with the following medical expenses:

• Person A: $20,000 in medical bills
• Person B: $10,000 in medical bills
• Person C: $15,000 in medical bills

Since the per person limit is $30,000, Person A can only recover $30,000 even though their expenses are $20,000.

The total per accident limit is $60,000, meaning all three injured parties must share that amount. If their medical expenses exceed $60,000, the victims may need to file a claim against the at-fault driver’s personal assets or use Uninsured/Underinsured Motorist (UM/UIM) coverage if available.

Single Limit Coverage Explained

Some insurance policies offer a single limit, meaning there is one lump sum of coverage available for all injuries and property damage—without a per-person cap.

If a driver has a $300,000 single limit policy, it means:

• The entire $300,000 can be used for any combination of medical expenses, lost wages, and property damage.
• There is no restriction on how much one person can claim, as long as the total payout does not exceed $300,000.

Application of Single Policy Limit:

A driver with $300,000 single limit coverage causes an accident, injuring three people with the following medical bills:

• Person A: $120,000
• Person B: $90,000
• Person C: $50,000
• Property Damage: $40,000

Since there is one combined limit, all expenses up to $300,000 are covered. This means Person A can recover their full $120,000, unlike in a split-limit policy where they may be capped.

Does UM/UIM Coverage Apply in Hit-and-Run Accidents?

Yes! Uninsured Motorist coverage applies to hit-and-run accidents in California, meaning if the at-fault driver flees the scene, your UM coverage can step in to cover damages.

However, to qualify, you must:

• Report the hit-and-run accident to the police within 24 hours.
• File a claim with your insurance provider within 30 days of the accident.

Conclusion

With Los Angeles’ high number of uninsured drivers, Uninsured Motorist (UM) coverage is essential to protect yourself financially. It ensures you can recover compensation for medical expenses, lost wages, and pain and suffering—even if the at-fault driver lacks insurance.

If you’re unsure about your insurance coverage or need help filing a claim, consult a personal injury attorney to ensure you receive the compensation you deserve.

Additional California Legal Resources About UM/UIM