How Your UM/UIM Coverage Can Increase Your Van Nuys Car Accident Case Value

How Your UM/UIM Coverage Can Increase Your Car Accident Case Value

After a serious car accident, the last thing you want to discover is that the at-fault driver has no insurance or carries only the bare minimum required by law. In California, the minimum liability coverage is just $15,000 per person for bodily injury. A single trip to the emergency room can easily exceed that amount, leaving you with overwhelming medical debt and uncompensated losses. This is where your own auto insurance policy can become your most valuable asset.

Many drivers believe their insurance is only for when they cause an accident. However, Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage are powerful tools designed to protect you when someone else is at fault. At Walch Law, we have seen countless cases where a client’s own UM/UIM policy was the key to securing a full and fair recovery. Call the experienced Van Nuys car accident lawyers at Walch Law now to learn more: 1-844-999-5342

What Are UM and UIM and Why Are They So Important Following A Van Nuys Car Accident?

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are optional parts of your own auto insurance policy that step in to protect you from irresponsible drivers.

Uninsured Motorist (UM) Coverage: This applies when you are injured by an at-fault driver who has no liability insurance at all. It also applies in most hit-and-run accidents, provided certain conditions are met.
Underinsured Motorist (UIM) Coverage: This applies when the at-fault driver has insurance, but their policy limits are not enough to cover the full extent of your damages (medical bills, lost wages, pain and suffering).

Essentially, UM/UIM coverage allows you to file a claim against your own insurance company, which then steps into the shoes of the uninsured or underinsured driver to pay for your losses up to your policy limits.

How UM/UIM Works in Common Scenarios

Let’s walk through the three most common situations where this coverage becomes essential.

Scenario 1: The At-Fault Driver Has No Insurance

You are rear-ended and suffer a back injury requiring surgery. Your medical bills total $90,000, and you lose $20,000 in wages. The driver who hit you has no insurance. Without UM coverage, your only recourse would be to sue the driver personally, which is often fruitless as they likely have no assets to pay a judgment. With a $100,000 UM policy, you can make a claim against your own insurer for your medical bills, lost wages, and pain and suffering, up to your $100,000 limit.

Scenario 2: The At-Fault Driver Has Minimum Limits

You are in a T-bone accident and sustain injuries valued at $120,000. The at-fault driver has California’s minimum bodily injury liability limit of $15,000. Their insurance will pay you the full $15,000. This leaves you with a $105,000 shortfall. If you have a UIM policy with $100,000 limits, you can then make a UIM claim to bridge the gap. Your insurer would be responsible for the difference between your UIM limit and the at-fault driver’s limit ($100,000 – $15,000 = $85,000). You could recover a total of $15,000 (from the at-fault driver) + $85,000 (from your UIM policy) = $100,000.

Scenario 3: You Are the Victim of a Hit-and-Run

A driver sideswipes you on the freeway, causing you to crash, and then speeds away. Because the at-fault driver cannot be identified, this is treated as a claim against an uninsured motorist. Your UM coverage can pay for your injuries, provided you meet two key requirements:

There must be evidence of physical contact between the vehicles.
You must report the accident promptly (usually within 24 hours) to the police/CHP and to your insurance company.

The Claims Process: A Strategic Sequence

Pursuing a UIM claim requires a specific legal sequence to protect your rights.

File a Claim with the At-Fault Driver’s Insurer: The first step is to pursue a claim against the responsible driver.
Make a Policy Limits Demand: Once your damages are fully calculated, your attorney will demand that the at-fault insurer pay their full policy limit.
Obtain Written Consent to Settle: This is critical. Before accepting the at-fault driver’s policy limit, your lawyer must get written consent from your own UM/UIM carrier. If you accept the money and sign a broad release without their permission, you could forfeit your right to make a UIM claim.
Pursue the UIM Claim: After settling the liability claim, you can then formally pursue the UIM portion of your case with your own insurer.

What Can UM/UIM Coverage Pay For?

Your UM/UIM coverage is comprehensive and can pay for the same damages you would have been entitled to from the at-fault driver, including:

Medical Bills (past and future)
Lost Wages and Loss of Future Earning Capacity
Pain, Suffering, and Emotional Distress
Future Medical Care and Therapy

Note: Standard UM/UIM covers bodily injury. Uninsured Motorist Property Damage (UMPD) is a separate, optional coverage that pays for repairs to your vehicle.

Arbitration vs. Litigation in California

Disputes with your own insurance company over a UM/UIM claim are typically handled differently than a standard lawsuit. Most California policies contain a binding arbitration clause. This means instead of filing a lawsuit and going to court, your case will be presented to a neutral arbitrator who will decide the value of your claim. While often faster than court, arbitration has its own unique rules and procedures, making experienced legal representation essential.

Practical Tips for All California Drivers

Check Your Declarations Page Now: Look at your auto insurance policy’s “Declarations Page.” Find the lines for “Uninsured Motorist” and “Underinsured Motorist” coverage.
Match Your Limits: We strongly recommend carrying UM/UIM limits that are equal to your own Bodily Injury (BI) liability limits. The cost to increase this coverage is minimal and provides immense financial protection.
Report a Hit-and-Run Immediately: If you are the victim of a hit-and-run, call the police and your insurer within 24 hours. Failure to do so can result in a denial of your UM claim.
Never Give a Recorded Statement Alone: Your own insurance company will become your adversary in a UM/UIM claim. Politely decline to give a recorded statement until you have spoken with an attorney.
Understand What UIM Pays: UIM coverage in California pays the difference between your limit and the at-fault driver’s limit. It does not “stack” on top of it.

Protecting Your Family After an Accident

UM/UIM coverage is not just for you; it also protects passengers in your vehicle and resident relatives in your household, even if they were pedestrians or cyclists at the time of the accident. In the tragic event of a wrongful death caused by an uninsured or underinsured driver, this coverage can provide vital financial support for surviving family members.

Let Walch Law Maximize Your Recovery Following Your Van Nuys Car Accident

Navigating the complexities of a UM/UIM claim requires deep knowledge of California insurance law and strategy. The insurance company—even your own—is a business focused on minimizing payouts. The team at Walch Law knows their tactics and has a proven track record of fighting to secure the maximum compensation our clients are owed.

We handle all cases on a contingency fee basis. This means you pay nothing unless and until we win your case. If you have been injured in a car accident, contact us today for a free, compassionate consultation. We will review your insurance policy, explain your options, and show you how we can help. 1-844-999-5342