How Does Underinsured Motorist Coverage Apply to My Case?

If you were hit by a driver who doesn’t have enough insurance, underinsured motorist coverage can help you recover money when the at-fault driver’s policy limits run out before your medical bills and other losses are fully paid. 

This page explains how your underinsured motorists policy can help you get compensation. If you need broader context on serious crashes, connect with a Los Angeles car accident lawyer to learn more about your rights and options.

What Underinsured Motorist Coverage Means For Your Claim

Underinsured motorist coverage, or UIM, is part of your auto insurance policy that can pay you when the at-fault driver’s bodily injury liability limits are too low to cover your total losses. In California, UIM is offered alongside uninsured motorist coverage, also known as UM. 

UIM coverage is particularly valuable in Los Angeles, where many drivers carry only California’s minimum required bodily injury liability limits, which are now $30,000 per person.

When your injuries from a serious crash exceed those low limits, your own UIM coverage can fill the gap, subject to your policy terms and California’s specific rules on how UIM benefits are calculated and paid.

When UIM Coverage Applies After A Crash

For UIM to apply in California, several conditions generally must be met. The other driver’s liability coverage usually must be exhausted, meaning paid out in full, before your UIM benefits kick in and start covering the remaining losses.

Your claim must also be timely under both your policy requirements and California law. Most policies require you to notify your UIM insurer within a certain timeframe after the crash, and you should report the claim as soon as you realize the other driver’s coverage may not be enough to pay for your injuries.

You should also notify your UIM insurer before you settle with the at-fault driver’s insurance company. Getting written consent from your own insurer protects your right to use UIM benefits later and avoids disputes about your insurer’s recovery rights against the at-fault driver. Settling without consent can put your UIM claim at risk.

California’s Difference-In-Limits Rule Explained

California follows what’s called a “difference-in-limits” model for UIM claims. That means your maximum UIM recovery is calculated by taking your UIM limit and subtracting the at-fault driver’s bodily injury liability limit.

Here’s how it works in practice. If you have $100,000 in UIM coverage and the at-fault driver has $15,000 in liability coverage, your maximum UIM recovery is $85,000, even if you only recovered $10,000 from the at-fault driver’s insurer. The math is based on the policy limits, not the actual settlement amounts.

If your UIM limit is equal to or lower than the other driver’s liability limit, there’s no UIM recovery available under this rule. 

Steps To Take After An Underinsured Driver Hits You

After a crash with an underinsured driver, your actions in the first days and weeks can shape your options and protect your rights. Here are the practical steps you should follow:

• Report the crash to the police and request a Traffic Collision Report, even if the crash seems minor at the time.
• Get a medical evaluation as soon as possible, even if you feel okay immediately after the crash. Some injuries don’t show symptoms right away.
• Notify your own insurance company promptly about the crash and ask about your UM/UIM coverage limits and any consent-to-settle requirements.
• Request and save your policy Declarations Page so you can confirm your UM/UIM limits and understand what coverage you have available.
• Track all your medical bills, lost wages from missed work, mileage for treatment appointments, and any other out-of-pocket costs related to your injuries.

A short consultation with J&Y Law early on can help you avoid mistakes like signing broad medical releases for the other driver’s insurance company or settling without your UIM carrier’s written consent. Coordinating the liability claim and UIM claim in the right order helps preserve your rights and maximize your total recovery.

What UIM Can Pay In A Car Accident Case

In California, UIM generally does not cover property damage to your car. You typically use collision coverage for vehicle repairs instead. However, underinsured motorist coverage can be a financial lifeline when you suffer significant injuries in a serious crash.

Common categories of damages you can recover through a UIM claim include:

• Medical expenses, including emergency room visits, hospital stays, surgery, physical therapy, and ongoing care
• Future medical needs for long-term treatment, rehabilitation, or medical equipment you’ll need in the years ahead
• Lost wages from the time you missed at work due to your injuries and medical appointments
• Out-of-pocket costs tied directly to your injuries, such as medical equipment, home modifications, or transportation
• Wrongful death damages in qualifying cases where a loved one died from crash injuries

We help you document each category with medical records, expert assessments when needed, and clear proof of how the crash changed your daily life and ability to earn a living.

Contact J&Y Law About How Underinsured Motorist Coverage Applies to Your Case

If the other driver’s insurance won’t cover all your injuries and losses, your own UIM coverage may be the path to a fair result and full financial recovery. 

Contact J&Y Law today to discuss your Los Angeles car accident and how underinsured motorist coverage can apply to your case. We focus on you, and we’re ready to help you move forward and get the compensation you deserve.