How does uninsured/underinsured motorist coverage work?
It’s useful to have UM/UIM coverage, particularly in a state with a high number of uninsured drivers like California. The uninsured motorist provision takes effect when you’ve been in a collision with a driver who does not have insurance. Your property damage and injury claim will go through your own insurance. Underinsured motorist or “excess coverage” covers costs not covered by the settlement from the other party’s insurance. For example, if you end up with $40,000 in medical bills and the party at fault has a policy limit of $15,000, you can turn to your insurance to cover all or part of the remaining bills.
