AUTO INSURANCE: Uninsured & Underinsured Motorist Coverage: Why It Matters in California
Imagine you’re driving through California traffic when—out of nowhere—another car crashes into you. The damage is severe, and you or your passengers suffer injuries. Then, you find out the other driver has no insurance or not enough coverage to pay for the damages.
This is where Uninsured (UM) and Underinsured Motorist (UIM) Coverage steps in to protect you financially.
What is Uninsured & Underinsured Motorist Coverage?
Uninsured and underinsured motorist coverage (UM/UIM) is an optional but highly recommended type of coverage that protects you and your passengers when the at-fault driver has no insurance or insufficient insurance to cover the costs.
✅ Uninsured Motorist Coverage (UM): Covers medical expenses, lost wages, and damages if you’re hit by a driver with no insurance. It also applies to hit-and-run accidents.
✅ Underinsured Motorist Coverage (UIM): Kicks in when the at-fault driver has insurance, but not enough to cover your medical bills or damages. Your UIM coverage will help fill the gap.
Why is UM/UIM Coverage Important in California?
🚗 High Number of Uninsured Drivers – Despite California requiring auto insurance, an estimated 16% of drivers on the road don’t have any coverage. If they hit you, you may be left paying out of pocket.
⚠️ Medical Costs Are Expensive – Even minor accidents can lead to thousands of dollars in medical bills. If the at-fault driver has minimal insurance, their coverage may run out quickly, leaving you with unpaid expenses.
🛑 Hit-and-Run Protection – California has a high rate of hit-and-run accidents, where the driver flees the scene. Without UM coverage, you could be left covering the costs yourself.
💰 Covers Lost Wages & Pain and Suffering – If you're injured and can’t work, UM/UIM coverage helps replace lost income and covers pain and suffering damages that the at-fault driver's policy may not cover.
How Much UM/UIM Coverage Do You Need?
California doesn’t require UM/UIM coverage, but having it can save you thousands in the long run. When choosing coverage limits, consider:
Your current health insurance (Will it cover accident-related medical bills?)
Your savings & assets (Could you afford medical bills or lost wages if hit by an uninsured driver?)
The cost of adding UM/UIM (It’s often affordable compared to the financial risk of not having it.)
A common recommendation is to match your liability limits (e.g., 100/300 for bodily injury).
Final Thoughts: Is It Worth It?
UM/UIM coverage is an affordable way to protect yourself from financial disaster after an accident with an uninsured or underinsured driver. In a state like California, where hit-and-runs and uninsured drivers are common, it’s one of the smartest coverages you can carry.
📞 Need help reviewing your policy? CST Insurance Services can guide you in choosing the right protection. Contact us today!
