In California, Uninsured/Underinsured Motorist (UM/UIM) coverage is an optional but highly recommended component of auto insurance policies. This coverage provides protection if the policyholder is involved in an accident where the at-fault driver either does not have insurance (uninsured) or does not have enough insurance to cover the full extent of the damages (underinsured). For example, if a driver with minimal insurance causes an accident that results in significant medical expenses or property damage, the injured policyholder can use their own UM/UIM coverage to compensate for the shortfall, ensuring they do not bear the full financial burden of the accident. This coverage can apply to medical bills, lost wages, and pain and suffering, as well as vehicle repairs or replacement if the policyholder’s car is damaged.
California law does not require drivers to carry UM/UIM coverage, but insurers are required to offer it. While the coverage is optional, it is highly advisable for drivers, especially in a state like California, where a significant number of drivers may be uninsured or underinsured. UM/UIM coverage helps protect the insured in situations where the at-fault party lacks sufficient insurance, ensuring that the injured party can still receive compensation for their injuries and damages. This coverage is particularly valuable for individuals who do not have comprehensive health insurance or who want additional financial protection in the event of an accident with an uninsured driver.
