A serious collision with a driver who carries California's minimum liability limits — or no insurance at all — is common in Los Angeles. When that happens, the coverage that matters most is often on your own policy.
Uninsured motorist (UM) and underinsured motorist (UIM) coverage is governed largely by Insurance Code section 11580.2, and it works differently from a normal third-party claim. The company evaluating your injuries is your own insurer, and the policy sets out procedural steps that can forfeit coverage if they are missed.
What each coverage does
Uninsured motorist
UM responds when the at-fault driver has no liability insurance, when the insurer denies coverage, or in a hit-and-run. California treats a qualifying hit-and-run as an uninsured motorist situation, but the statute imposes specific requirements, including prompt reporting to law enforcement and, in many cases, evidence of physical contact between the vehicles.
Underinsured motorist
UIM applies when the other driver has some coverage but not enough. California UIM is structured as a gap coverage: the available benefit is generally your UIM limit reduced by what the at-fault driver's liability insurer pays. That means a policy with limits equal to the other driver's limits may produce nothing.
Uninsured motorist property damage
This is a separate, usually small coverage for vehicle damage, with its own deductible and its own reporting rules.
The step that most often causes problems: consent to settle
Nearly every California auto policy requires the insured to obtain the UM/UIM carrier's written consent before settling with the at-fault driver's liability insurer. The reason is subrogation: once you release the other driver, your carrier loses its right to pursue that driver.
Settling the liability claim first, without written consent, is a frequent and avoidable way to lose an underinsured motorist claim entirely. Send the settlement offer to your own carrier, in writing, and wait for a written response before signing any release.
How a UM/UIM claim proceeds
- Notice. Report the collision to your own carrier promptly, even if fault is clearly with the other driver.
- Limits disclosure. Establish what liability coverage actually exists. In California, an injured person can request the other driver's policy limits information under Vehicle Code section 16056 procedures and through the claims process.
- Consent. Obtain written consent before accepting the liability settlement.
- Presentation. Submit medical records, wage documentation, and a demand to your own carrier.
- Arbitration if needed. Section 11580.2 provides that disputes about whether the insured is legally entitled to recover, and the amount, are decided by arbitration rather than a jury in most cases.
Our guide comparing an uninsured motorist claim and a third-party claim covers the strategic differences in more depth.
Deadlines are different here
UM and UIM claims are contract claims against your own insurer, and the statute sets its own timing requirements — including a requirement that, within a defined period after the incident, the insured either file suit against the at-fault party, agree to arbitration, or make a formal written demand for arbitration. Those periods are not the same as the two-year personal injury deadline in Code of Civil Procedure section 335.1, and missing them can end the claim even though the underlying injury deadline has not run.
Because two different clocks run at once, calendar both. Our deadline tool explains the general injury timing rules, and the policy language governs the arbitration demand.
Your own insurer is still the other side
A UM/UIM claim is adversarial in substance. Your carrier owes you duties of good faith and fair dealing, but it is also evaluating and paying the claim. Practical consequences:
- A recorded statement request is a claims tool, not a formality.
- Broad medical authorizations can open records unrelated to the incident.
- Documentation of wage loss and treatment matters as much as it would against a stranger's insurer.
Coverage questions come up most often in car accident, motorcycle, and pedestrian claims, where a pedestrian or cyclist struck by an uninsured driver may still have UM coverage through a household auto policy. If you are unsure what coverage applies, contact my office before you sign anything.
Frequently asked questions
Does uninsured motorist coverage apply to a hit-and-run?
It can. California treats a qualifying hit-and-run as an uninsured motorist claim, but the statute imposes conditions such as prompt reporting to law enforcement and, in many cases, evidence of physical contact between the vehicles.
Do I need my insurer’s permission to settle with the other driver?
Almost always. Most California policies require written consent before you release the at-fault driver, because settling destroys your carrier’s subrogation rights. Settling first can forfeit an underinsured motorist claim.
Will my rates go up if I use my own UM coverage?
California law restricts surcharging a policyholder for a not-at-fault claim. Rating practices vary by carrier, so ask your insurer or agent about your specific policy.
Can I be struck as a pedestrian and still use UM coverage?
Often yes. UM coverage generally follows the insured person, not only the insured vehicle, so a pedestrian or cyclist may have coverage through a household auto policy. The policy language controls.
This is general information, not legal advice. Prior results do not guarantee a similar outcome.