Someone hit you, and it turns out they carried no insurance, or nowhere near enough to cover what happened to you. Uninsured and underinsured motorist coverage exists for that situation. It is coverage you bought, on your own policy, that stands in for the driver who cannot pay.
The change is that your own insurer is now the party across the table. It still owes you good faith. It also decides what your injuries are worth.
When Each Coverage Applies
Uninsured motorist coverage applies when the at-fault driver has no policy at all, when their insurer denies coverage or goes insolvent, and in hit-and-run cases. Hit-and-run claims carry their own requirements, and a claim involving a vehicle that ran you off the road without touching your car raises a problem worth discussing early.
Underinsured motorist coverage applies when the at-fault driver has insurance, but less than you carry. If their limits equal or exceed yours, there is no underinsured motorist claim at all, regardless of how badly you were hurt.
How Underinsured Coverage Actually Pays
This is the part almost every client gets wrong, and it is worth understanding before you assume what your coverage is worth.
California does not add your underinsured coverage on top of what the at-fault driver pays. It subtracts. If you carry $100,000 in underinsured motorist coverage and the at-fault driver pays their $30,000 limit, your carrier owes up to $70,000, not $100,000. Your total recovery from both sources is capped at your own limit.
California also does not let you combine limits across vehicles or policies to get around that result.
One consequence matters for anyone seriously hurt. California’s minimum liability limits rose in 2025, but they remain low relative to what a catastrophic injury costs. In a serious case, your own underinsured coverage is often where the meaningful money sits, which is why it is worth checking your limits before you ever need them.
Where injuries are severe, this work runs alongside catastrophic injury and wrongful death claims.
Two Mistakes That End Claims
These claims run on unforgiving rules.
The first is timing. For an uninsured motorist claim, the law requires specific action within two years of the accident: filing suit against the at-fault driver, reaching an agreement on the amount owed, or formally demanding arbitration in writing. Negotiating with an adjuster does not stop that clock. A phone call asking to arbitrate is generally not enough. Underinsured motorist claims run on a different timeline, and you should never assume the deadlines.
The second is settling with the at-fault driver first. Your own insurer has rights against that driver, and releasing them without your carrier’s written consent can destroy those rights and your claim along with them. Get written consent before signing anything.
How These Claims Get Decided
Most disputes about whether you are entitled to recover, and how much, go to arbitration rather than trial before a jury. Other questions, including how the policy should be read and whether a particular exclusion applies, generally belong in court. Which forum decides which issue affects how a case is built, and it is not always obvious at the outset.
When Your Own Insurer Fights You
Carriers dispute these claims. They question whether your injuries came from the accident, they value the claim well below what the medical evidence supports, and they delay. Your insurer owes you good faith in handling your own claim, and an unreasonable denial or lowball evaluation can support a claim for insurance bad faith beyond the policy benefits themselves.
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If you were hit by an uninsured or underinsured driver, or your own carrier is disputing your claim, contact me. Because of the deadlines, it is better to call early than late. I meet with clients in English, Armenian, and Russian.