What Is Uninsured and Underinsured Motorist Coverage in California?

If you’ve been injured in a car accident in Los Angeles or elsewhere in California—whether due to someone else’s negligence or by no fault of your own—you might find yourself facing expensive medical bills, lost wages, and overwhelming uncertainty. This is especially true if the at-fault driver doesn’t have insurance or lacks sufficient coverage. That’s where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage come into play.

Understanding how UM and UIM coverage work in California, especially in light of the state’s updated minimum insurance requirements in 2025, can help you better protect yourself and your loved ones after an accident. This article explains your rights under California law in simple terms and why this type of insurance is so important.

California’s New Auto Insurance Minimums in 2025

As of January 1, 2025, California has significantly increased the minimum amount of liability coverage all drivers must carry. For decades, the required limits were:

• $15,000 for injury or death to one individual,
• $30,000 for injury or death to more than one individual, and
• $5,000 for property damage for each accident.

These limits have long been criticized as outdated, given the dramatic rise in medical costs, vehicle repairs, and inflation.

Starting in 2025, California Vehicle Code § 16056 mandates that all drivers must carry at least:

• $30,000 for injury or death to one individual,
• $60,000 for injury or death for each accident, and
• $15,000 for property damage for each accident.

The increase also applies to Uninsured and Underinsured Motorist Bodily Injury coverage, which must now carry minimum limits of $30,000 per person and $60,000 per accident if you choose to include it in your policy.

This change ensures that injured drivers and passengers have access to better compensation when someone else causes harm on the road, even if the at-fault driver is not adequately insured.

What Is Insurance Coverage for Uninsured Motorists?

Uninsured Motorist coverage (also known as UM coverage) is designed to protect you if you’re hit by a driver who has no liability insurance. Despite it being illegal to drive without insurance in California, many drivers still do. In fact, estimates suggest that about 17% of California drivers may be uninsured.

If you are injured in a crash caused by an uninsured driver, or in a hit-and-run accident where the at-fault driver flees the scene, UM coverage can step in to cover:

• Medical expenses,
• Lost wages,
• Pain and suffering,
• Other injury-related damages.

California Insurance Code § 11580.2 requires insurance companies to offer UM coverage when you buy a policy, although you can reject it in writing. If you didn’t opt out, your policy likely includes it. For hit-and-run cases, California law requires some physical contact between vehicles for UM coverage to apply.

UM coverage is especially critical if you’re walking, biking, or riding as a passenger and are struck by a driver who lacks liability insurance.

What Is Underinsured Motorist (UIM) Coverage?

Underinsured Motorist (UIM) coverage protects you when the at-fault driver does have insurance, but not enough to fully compensate you for your injuries and losses.

Imagine your total medical costs and lost income add up to $100,000, but the at-fault driver only carries the new minimum liability of $30,000. After collecting the full $30,000 from the other driver’s policy, you could use your own UIM coverage to pursue the remaining $70,000—up to the limit of your own UIM policy.

Like UM coverage, UIM is governed by California Insurance Code § 11580.2 and is typically included alongside UM when you purchase it. However, UIM only applies once you’ve exhausted the other driver’s insurance limits, and your coverage must be higher than theirs to make up the difference.

In serious collisions, the difference between having and not having UIM coverage can mean thousands—or even hundreds of thousands—of dollars in uncovered costs.

Choosing the Right Amount of Coverage

With California’s new insurance minimums in place, every new or renewed policy from January 1, 2025, must meet the higher limits. If your policy had lower limits in 2024, your insurer will automatically increase your coverage at renewal to meet the new standards.

But just meeting the minimum might not be enough for your actual needs.

While $30,000/$60,000 is a step up from the old limits, serious accidents can cost far more—especially if surgeries, rehabilitation, or long-term care are involved. That’s why it’s smart to carry higher UM and UIM limits if you can afford it. Many insurers offer policies with $100,000, $250,000, or even higher limits.

It’s your responsibility to ensure your insurance fits your financial situation and risk. Consider reviewing your policy and discussing it with your agent to make sure you’re adequately protected, not just compliant with the law.

What Damages Are Covered by UM and UIM?

UM and UIM coverage generally include compensation for the same types of damages that a liability policy would cover if the at-fault driver were fully insured. These damages may include:

• Hospital and medical bills,
• Physical therapy or rehabilitation,
• Lost income from time off work,
• Future lost earnings if you’re permanently disabled,
• Pain and emotional suffering,
• In fatal cases, funeral expenses.

UM and UIM typically do not cover damage to your vehicle unless you have a special endorsement or separate collision coverage. Always check your policy details to understand your exact protection.

To receive benefits, you’ll need to prove the other driver was at fault. These claims are often resolved through arbitration with your own insurance company rather than a lawsuit. Still, preparing a strong claim with evidence of fault and losses is essential.

Contact Los Angeles Uninsured Motorist Accident Lawyer Samer Habbas

If you’ve been seriously injured in a crash caused by an uninsured or underinsured driver, you’ll want to clarify your legal rights and insurance options by speaking with a Los Angeles car accident attorney. Medical bills and lost wages can pile up quickly, and insurance companies don’t always make it easy to recover what you’re owed, even under your own policy.

To discuss your options and get the support you need, contact Law Offices of Samer Habbas & Associates by calling 949-727-9300 or contacting us online for a free consultation with an uninsured motorist accident attorney in Los Angeles. Our team is ready to help you pursue the compensation you deserve and guide you through the process of dealing with uninsured and underinsured drivers.