- How coverage for property damage is separate from coverage for bodily injuries;
- The difference between liability coverage and full-coverage;
- The maximum that insurance companies will pay for particular collisions; and
- How Uninsured Motorist and Under-Insured Motorist coverage works.
Sometimes, the person who causes a collision does not have car insurance. In this case, the injured person may recover from his or her own insurer through what is called Uninsured Motorist (“UM”) coverage. Also, sometimes the at-fault driver has insurance, but the policy limits are too low to cover all the injuries you suffered. In such a case, the injured person’s own Under-Insured Motorist (“UIM”) coverage could apply to provide additional coverage.
For example, where a person is seriously injured but the at-fault driver only has $30,000 in bodily injury coverage, if the injured person has $100,000 in UM/UIM coverage, then after that person has collected the $30,000 from the at-fault driver’s insurance, he or she could then make a UIM claim with her own insurance for up to $70,000.
California only requires drivers to carry liability coverage for bodily injuries at $15,000 per person and $30,000 per collision, so we strongly recommend that everyone carry at least $100,000 in UIM coverage.