Underinsured motorist coverage 2025

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California Law Forbids Insurers to Raise Rates That means your rates cannot legally go up when you try to get the compensation you need and deserve after an auto accident.
Uninsured motorist coverage (or UM) compensates you when the at-fault driver failed to carry liability insurance. Underinsured motorist coverage (or UIM) may compensate you when the at-fault driver carried liability insurance, but it was not enough to compensate for all damages arising from the crash.
The way it works is this: If your UIM coverage limits are greater than the bodily injury liability limits of a negligent driver who causes you injury, then once the liability policy limits are exhausted you can make a claim against your UIM coverage for an amount up to the difference between your policy coverage
The UIM coverage will pay a maximum of the difference between the other drivers Liability limits and your UIM limits. Caution: The insurance company will not provide coverage if you or your legal representative settles the bodily injury or property damage without the companys written consent.
However, insurance companies often pursue uninsured drivers to recover the costs of paying their insureds through uninsured motorist (UM) or underinsured motorist (UIM) coverage.

People also ask

Being underinsured means a person has insurance coverage, but the limits may not be high enough to cover the full expenses of a claim. For example, each state requires auto liability coverage and sets minimum limits that drivers must purchase.
What is an underinsured motorist? An underinsured motorist is someone who has car insurance, but their liability coverage limits arent high enough to cover an injury as a result of an accident they cause.
But, as a California personal injury attorney I can assure you that your insurance company should not raise your rates for making an Uninsured or Underinsured Motorist claim on your policy. In fact, in most cases, doing so may violate long-standing California legal statutes.

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