WHAT IT IS
In California, it is estimated that around 4 million drivers on the road are uninsured despite it being a legal requirement for being on the road. For this reason alone, carrying uninsured motorist insurance is a very smart move to ensure you’re covered in all circumstances.
On average, around 15% of car accident claims involve an uninsured driver. In such an instance, if an uninsured driver causes an accident, the other driver cannot claim against their insurance as it does not exist. Therefore, uninsured driver insurance is really important to cover an individual in this instance for physical injury or damage to their car resulting from an accident where the person liable does not have the insurance policy to pay out.
Will my insurance be raised if I used my uninsured motorist policy?
When you normally claim insurance for an accident that you are liable for, your insurer will increase your insurance rate. However, thanks to California’s proposition 103, insurance providers are prevented from raising an individual’s insurance rate after claiming on their uninsured motorist policy. Essentially, using your uninsured motorist policy will not have any negative effects on someone’s policy.
How does my uninsured motorist policy work?
Uninsured motorist insurance is applicable when a car accident is caused by a driver without any liability car insurance. The insurance can cover medical bills, loss of wages resulting from the car accident, pain or suffering, funeral expenses and property damage to the other parties vehicle.
What about under-insured motorists?
This refers to when the liable party is without sufficient liability insurance to cover your claim and so your underinsured motorist policy pays out for the remainder of your claim without effecting your own insurance policy or premium. For example, if another driver crashed into you and you broke your leg and your claim was $100,000 to cover your medical bills and loss of wages, but the other driver only carries California’s minimum insurance limit for bodily injury of $15,000, your own underinsured motorist policy will pay out the remainder of the claim.
California Minimum Insurance Limits
Under California Law, all drivers are required to carry standard car liability insurance, but are also required to carry uninsured motorist coverage with minimum coverage. The minimum coverage for uninsured motorist insurance that needs to be taken out for bodily injury is $15,000 per person and $30,000 per accident. With regards to uninsured motorist property damage coverage there is a minimum of $3,500.
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