It's been estimated that nearly one-quarter of the drivers on the road in California don't have any auto insurance, and that one-third are "underinsured." What happens if you are driving and get in a collision with an uninsured driver? Or if you're a pedestrian hit by a driver with no insurance? The same question arises for passengers of buses and taxis in collisions with a driver who has not bothered to get auto insurance, and victims of a hit-and-run — who pays for the medical bills and/or damage to a vehicle caused by an uninsured driver?
Uninsured Motorist Insurance
If you have "uninsured motorist insurance" and enough of it, you can rest easy; the purpose of such insurance is to cover your losses in these types of circumstances. The company you purchased the insurance from is supposed to pay compensation up to the amount of the insurance policy, depending on your damages.
Say, for instance, that you are injured in some kind of auto accident where the other party is uninsured. Let's say that you end up with $20,000 in medical bills and $15,000 in property damage to your vehicle, totaling $35,000 — and the party at fault has no insurance company to collect from, and no assets to collect a judgment from, or isn't even locatable. If you don't have uninsured motorist coverage, you could be left without any recourse.
However, if you do have uninsured motorist coverage, your costs and damages may be covered. Uninsured motorist coverage is not very expensive, and in California, you automatically get uninsured motorist coverage when you buy car insurance — unless you take action to opt out of it. Having $100,000 worth of uninsured motorist coverage is advisable.
When the Other Party Is Underinsured
Even when the other party has insurance, the policy may not be enough to cover your damages. If you have uninsured motorist insurance (UMI), compensation can be recovered from your own policy to cover the remaining damages.
Ask Our Attorneys about Uninsured Motorist Insurance
If all this sounds a bit complex to you, you're not alone. The attorneys at O'Mara and Padilla are experienced at dealing with auto insurance companies, insurance policies (with and without uninsured motorist coverage), and legal claims arising from motor vehicle accidents. Feel free to contact us today with questions; we're happy to provide a complimentary consultation.
If You’ve Been in an Accident
Do not accept a settlement offer from an insurance company without talking to us first. Auto insurance companies are in business to make money rather than pay it out in claims, and they may try to settle your case quickly and to their benefit by offering a settlement amount that is far lower than what is appropriate and fair.