As you all may know, I was involved in a serious accident. I was struck by
a truck going up westlake when the motorist made a left turn into me. I
wanted to make you all aware of uninsured and underinsured motorist
coverage that you can purchase through your auto policy. Unfortunately
after an accident all you can collect for damages from the driver that hit
you, is the limit to their policy, (unless you also sue them). Fortunately
you can buy UM/UIM and have more coverage to help with your bills. So I
just want to remind you of this so you can max out your UM/UIM coverage
like I did 2 or 3 yrs ago.
Thanks
Rob K
Uninsured motorist coverage kicks in when the other party is uninsured or
underinsured.
1. What is uninsured motorist insurance coverage in California?
*California* law requires drivers to maintain so-called “15/30/5” liability
insurance.
15/30/5 means that if the insured is at fault for an *auto accident*, the
insurer will pay up to:
- $15,000 for bodily injury coverage or death per person,
- $30,000 for total bodily injury or death per accident (to all people
in the other vehicle combined), and
- $5,000 for property damage (collision coverage) to the other vehicle.
Automobile insurance is available in *California* in higher amounts than
the minimum insurance limits of 15/30/5. Many companies, for instance,
offer up to $100,000 per person and $300,000 for total bodily injury per
accident.
But many drivers cannot afford or are unwilling to pay the premiums for
such insurance. This shifts the burden of paying for medical expenses and
other damages after a *car accident* to private health insurers or
government programs such as Medicare and Medi-Cal.
To remedy this California law requires insurers to offer drivers *coverage* for
accidents caused by uninsured drivers. This coverage is known as uninsured
motorist coverage, or UMC. And it is comprised of uninsured motorist bodily
injury (UMBI) and uninsured motorist property damage (UMPD).
2. What is underinsured motorist coverage?
Even when California drivers do pay for *insurance*, they often elect
coverage at the minimum amount. These amounts are often too low to cover
damages for all but minor fender benders. They are particularly inadequate
in cases of serious accidents when there are multiple occupants in the car.
Under-insured motorist coverage treats the other driver as uninsured for
damages in excess of the at-fault driver’s policy limits up to the policy
limit of the driver with the *underinsured* motorist coverage.
3. Do I need uninsured motorist coverage if I have health insurance?
Private health plans and programs such as Medicare and MediCal will pay
medical costs after a car accident regardless of whose fault the accident
was.
But many people have policies with high deductibles and copays. And health
insurance plans do not cover services such as chiropractic care and
acupuncture. Nor will they pay to fix *property* damages to cars or cover
lost work time or pain and suffering.
UMC/UIM is first-party insurance that allows plaintiffs to recover from
their own insurance company for *all* their compensatory damages after
an accident that is not their fault.
4. How much UMC/UIM do I need?
*California* insurers generally offer customers uninsured/underinsured
policy limits equal to a driver’s liability policy limits.
So, for instance, if a driver has purchased 50/100 limits
for accidents that they cause, they can usually purchase 50/100 policy
limits for accidents caused by other drivers who are uninsured or
under-insured.
In California, a driver may not collect more for injuries caused by an
uninsured or underinsured motorist than the amount of insured’s policy
limits. This is different than in some states (such as Nevada) in which
uninsured motorist claim policies cover *all* damages caused by uninsured
or under-insured drivers.
*A California umbrella policy offers extra coverage*
A driver who wants more insurance than the maximum UMC/UIM coverage
available in California must purchase an umbrella policy. Umbrella policies
are relatively inexpensive and can be applied to cover excess losses under
*any* policy of insurance carried at the maximum available limits.
You should discuss your needs with your insurance broker. But generally
speaking, to waive uninsured motorist coverage is not a good idea unless
you have very very good health insurance and either do not work or have a
very comprehensive disability insurance policy.
--
Sheri
