Crazy and Uninsured/Underinsured: California streets are filled with uninsured or inadequately insured drivers, how to protect yourself financially

Ask yourself one question, do I need uninsured/underinsured motorist coverage?

First off you have to be familiar with the term uninsured/underinsured motorist coverage. Uninsured motorist is meant to compensate your losses even though the opposing driver has no insurance.  Underinsured motorist coverage is meant to compensate your losses even though the opposing driver has inadequate insurance coverage.  These two coverage’s exist together generally under the term uninsured motorist coverage.

The law protects consumers from unfair insurance practices and requires insurance companies to provide uninsured/underinsured motorist coverage, unless the consumer specifically declines it in writing.  Too many unwary consumers sign this piece of paper without even knowing the facts. 

When you purchase uninsured/underinsured motorist coverage, it automatically covers you and all your passengers when faced with an uninsured or underinsured opposing party. It also includes other drivers who have your permission to drive your vehicle.  Further, passengers may claim towards their independent uninsured/underinsured motorist coverage.  Meaning, if you as a passenger have uninsured/underinsured motorist coverage on your vehicle but you get into an accident as a passenger in your friends vehicle, your vehicle’s uninsured/underinsured motorist coverage may still cover you in this accident. 

Uninsured/underinsured motorist coverage applies only when the opposing driver’s liability limits are lower than your uninsured coverage limits or completely non-existent.  In that case you are entitled for a compensation for both your financial and non-financial losses which your sustain. Financial losses would include medical expenses, any loss of income or earning and any diminution in your ability to earn money in the future.  Non-financial damages include such elements as loss of ability to enjoy or engage in certain activities as a result of your sustained injuries, pain and suffering and other such objective losses.

Your insurance company is only required to issue uninsured/underinsured policy in a minimum amount of $30,000.00 per person/ $60,000.00 aggregate regardless whether you desire to purchase a higher liability policy. However, if you decide to purchase a $15,000.00/$30,000.00 liability policy, your insurance company will only offer uninsured motorist coverage for the same amount.

Now the other important question that you need ask yourself; how much uninsured motorist coverage do I need?

An obvious answer would be to purchase a coverage that you can afford. However, if you are an individual with high income, and a prolonged injury would substantially impair your earning capacity, you should consider having high coverage.

It would also be a good idea to match your liability coverage to your uninsured motorist coverage. Suggested coverage in California today is $100,000.00 per person/$300,000.00 aggregate. Moreover, it is always wise to purchase higher coverage if you can afford it.

Make sure you are protected against uninsured and underinsured motorists on these crazy streets of California.  With the amount of uninsured and underinsured drivers on these crazy streets you cannot afford not to.  Its costs are minimal and the benefits are highly worth your while. 

KAASS LAW is authorized to practice law in California.   The above content is intended for California residents only.  This content provides only general information which may or may not reflect the most current legal developments. KAASS LAW expressly disclaims all liability in respect to actions taken or not taken based on any of the contents of this website.