Uninsured/Underinsured (UI/UIM) Motorist Policy Limits in California vs Nevada

Getting a new car is thrilling, bringing a sense of freedom and independence. However, with this excitement comes the responsibility of ensuring your vehicle is properly insured. But what happens if you’re in an accident caused by another driver who either lacks adequate insurance or has no coverage at all? Who pays for the damages to your car and any medical expenses you might incur?

What is Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist (UM/UIM) coverage is an essential type of insurance designed to safeguard you in these situations. This coverage steps in to cover losses, medical bills, and damage if the at-fault driver cannot compensate you. Without UM/UIM, you may be left handling significant out-of-pocket expenses, even though you weren’t responsible for the accident.

According to the Insurance Information Institute, approximately 1 in 8 drivers in the U.S. are uninsured. California, like many states, requires auto insurance, yet uninsured drivers remain a problem. NBC LA highlights how uninsured drivers impact insured motorists financially, adding another layer of importance to obtaining the right coverage for your protection.

What Happens if You’re in an Accident with an Uninsured Driver?

Being involved in a car accident is stressful, but it becomes even more complicated if the other driver doesn’t have insurance. Here are a few questions to consider:

• Who pays for your medical expenses?
• Who covers the repairs to your vehicle?

In cases where the other driver lacks insurance, UM/UIM coverage can provide critical financial relief. Not only does it cover vehicle repairs, but it can also address medical expenses for injuries caused by the accident. ABC7.com recently reported on how out-of-pocket costs are skyrocketing, making UM/UIM coverage even more valuable for financial security.

Why Do I Need UM/UIM Coverage?

While liability insurance is mandatory in many states, including California, some drivers still operate without it. Having UM/UIM coverage helps you avoid bearing the financial burden of someone else’s mistake. Fox11.com recently published an article highlighting real-life cases where drivers faced overwhelming costs after accidents with uninsured motorists, underscoring the importance of protecting yourself against these risks.

Frequently Asked Questions About UM/UIM Coverage

Q: Is UM/UIM coverage mandatory in California?
A: While California law mandates auto insurance, UM/UIM coverage is not required. However, given the high number of uninsured drivers, it’s highly recommended to add this coverage for peace of mind.

Q: How much UM/UIM coverage do I need?
A: Coverage needs vary. Many experts recommend purchasing at least enough to cover potential medical expenses and vehicle repairs, but consulting with your insurance provider can help tailor a plan to suit your needs.

Q: Will my premiums increase if I use UM/UIM coverage?
A: In most cases, using UM/UIM coverage after an accident caused by an uninsured driver should not lead to an increase in your insurance premiums. However, this can vary by provider.

Protect Yourself on the Road

Accidents are unpredictable, but you can be prepared by securing the right type of insurance. Investing in UM/UIM coverage provides peace of mind, knowing you’re protected even if the other driver can’t cover the costs. Stay informed and ready with the coverage that protects you best, regardless of others’ choices on the road.

Understanding California’s Minimum Insurance Coverage Requirements

When you own a motor vehicle in California, obtaining the right insurance coverage is not just a smart financial choice—it’s a legal requirement. California’s insurance regulations aim to protect drivers, passengers, and other road users by mandating minimum coverage that covers both bodily injuries and property damage in the event of an accident.

Why You Need Insurance Coverage

Auto insurance offers essential protection against the costs that can arise from an accident, whether you’re dealing with property damage or personal injuries. If you’re involved in a collision, insurance helps cover the expenses related to repairing or replacing vehicles, as well as medical bills for yourself and others affected. Without adequate insurance, drivers face significant financial liability and may even be subject to legal penalties, which is why understanding these coverage minimums is so important.

What Are the Minimum Insurance Requirements in California?

California law mandates a specific set of minimum coverages for all drivers. Here’s a quick breakdown:

• $15,000 for Bodily Injury or Death per Person: This covers medical expenses if someone other than the driver is injured or killed in an accident caused by the insured driver.
• $30,000 for Total Bodily Injury or Death per Accident: This total coverage amount applies when multiple people are injured or killed in a single accident.
• $5,000 for Property Damage to Another Vehicle: This covers the cost of damages to the other driver’s vehicle or property, including objects like fences or structures.

It’s essential to remember that these minimum requirements are set to provide a basic level of coverage. In reality, however, the costs associated with accidents, particularly serious ones, can often exceed these amounts, which is why many experts recommend higher coverage limits.

Do I Need More than the Minimum Coverage?

A common question drivers ask is: “Is the minimum coverage enough?” The answer depends largely on individual circumstances. Minimum coverage will only go so far, and costs associated with major accidents can quickly surpass these limits. Drivers who want added protection, especially those with significant assets, might consider adding additional coverages like uninsured motorist coverage or collision coverage to guard against out-of-pocket expenses.

For a deeper look into California’s requirements and the potential risks of low coverage, check out this ABC7 report on common insurance issues facing drivers.

Consequences of Not Meeting Insurance Minimums

If you drive without meeting California’s insurance minimums, you could face serious penalties. These can include fines, license suspension, and even vehicle impoundment. In addition to these penalties, uninsured drivers who cause an accident are personally liable for damages, which can lead to severe financial hardship.

In fact, over 16% of California drivers are estimated to be uninsured despite the mandatory insurance requirement, according to recent studies (NBC LA has a comprehensive breakdown of uninsured motorist statistics).

What Does This Mean for You?

For Californians, adhering to these insurance minimums is both a legal obligation and a practical way to protect your financial future. However, the reality is that these minimums may not be sufficient for all drivers. For those who want to avoid the financial risks associated with accidents, it’s wise to consider higher coverage limits or additional types of insurance.

Frequently Asked Questions

Q: Can I drive legally with just the minimum coverage?
Yes, meeting California’s minimum insurance requirements allows you to drive legally. However, the minimum coverage may not cover all costs in the event of a serious accident. Higher limits provide more comprehensive protection.

Q: What happens if I’m in an accident with an uninsured driver?
In such cases, uninsured motorist coverage can help. Although it’s not mandatory in California, it’s highly recommended. For more on how uninsured motorist coverage can protect you, check out this Fox 11 article about uninsured drivers in California.

Q: How can I avoid penalties for uninsured driving?
Ensure that you maintain at least the minimum required coverage, keep your insurance documentation up-to-date, and carry proof of insurance in your vehicle.

 Insurance Coverage Minimums in Nevada

By contrast, as of July 2018 in Nevada, the regular motorist is required by law to have the following insurance coverages for accidents that they are involved in where they are at fault:

1. $25,000 coverage for bodily injuries per person
2. $50,000 coverage for total bodily injuries per accident, and
3. $20,000 coverage for property damage

In many instances, even having satisfied the minimum insurance requirements may not be enough coverage in the case of an accident for some people. In addition, motorists are not required by law in either California or Nevada to purchase insurance that would protect them if they were hit by an uninsured or underinsured motorist. Although the insurance payouts may not cover damages suffered from uninsured motorists, victims may still be able to recover compensation for their damages suffered with the help of a personal injury lawyer.

Protecting yourself against Uninsured/Underinsured Motorists

While there are insurance companies who offer higher coverage limits in exchange for paying higher premiums, some if not many motorists in California and Nevada are not able to pay the premiums associated with having the minimum insurance coverage required by law.

In this case, these individuals become uninsured/underinsured motorists, who, when are involved in an accident where they are the ones at fault can create a dangerous situation for yourself and your family. In addition, there are also individuals who cannot afford or choose not to purchase insurance, yet still operate motor vehicles.

Uninsured/Underinsured Motorists Insurance Coverage

However, there is a solution. Uninsured/ Underinsured Motorist (UI/UIM) coverage is a type of insurance coverage offered by insurance providers in both California and Nevada. This coverage is designed to protect you and your passengers if you are involved in an accident where the other driver is at fault and either (1) does not have insurance (uninsured motorist) or, (2) does not have enough insurance coverage (underinsured motorist) to pay all of the losses which you incur to your property, or medical costs to you and your passengers.

Many uninsured or underinsured motorists may not have adequate assets in order to collect adequate damages. In addition, in the case of inadequate coverage for medical expenses by insurance companies, some motorists may ask themselves why they should purchase UI/UIM insurance if they and their passengers have access to healthcare. However, not all healthcare providers will cover all treatments associated with injuries received in car accidents such as chiropractor care.

UI/UIM Policy Coverage in California

In California, drivers are not able to collect for injuries that were caused by UI/UIM when this amount is more than the amount of the insured’s policy limit.

In this case, California allows their motorists to purchase insurance coverage which is equal to their coverage they have if they are involved in an accident where they would be at fault.

If a California motorist would like to have more insurance coverage than the maximum UI/UIM coverage available in California, then motorists are also able to purchase umbrella policies. However, since this type of coverage is not mandatory, most California motorists actually elect to waive UI/UIM insurance.

UI/UIM Policy Coverage in Nevada

In Nevada, drivers who purchase UI/UIM coverage through their insurance companies are able to collect for the cost of all damages which are caused by uninsured/ underinsured motorists.

When purchasing UI/UIM insurance in Nevada, both of these types of coverage are included together. For example, if you are purchasing insurance to protect yourself against an uninsured motorist, then you are automatically also purchasing coverage to protect yourself against an underinsured motorist.

Medical Expenses

In both California and Nevada, motorists are offered the option to purchase an optional form of insurance called “Medical Payments Insurance Coverage” which would cover physical injuries for you and your passengers regardless of who is at fault. This type of insurance would also cover you if you are the passenger in another vehicle that is struck.

However, this can present problems as the maximum coverage can usually be very low. In Nevada, the maximum coverage is only $10,000. By contrast, In California, motorists can purchase insurance that will cover up to $1,000 worth of medical expenses. As medical procedures and costs associated with accidents can be costly, these coverages are usually not enough to make sure that your loved ones are insured and cared for in the case of being involved in an accident with an underinsured or uninsured motorist in either California or Nevada.

If you or someone you know find yourself in an accident with an uninsured or underinsured motorist and did not elect to purchase UI/UIM insurance, an experienced auto accident lawyer could help you recover costs associated with this accident.

Many times, motorists feel unsure of how to proceed in situations like these, as they may feel like they have exhausted all of their options. However, our experienced personal injury attorneys possess the qualifications and experience needed to review and handle these cases.

Heidari Law Group can help you recover expenses incurred if you are involved in an accident with an uninsured or underinsured motorist. Whether you’re in California or Nevada, Heidari Law Group will be there to assist you. Heidari Law Group also has offices in Fresno, California, Sacramento, California, Los Angeles, California, Irvine, California, and Las Vegas, Nevada. Call for a free case evaluation today!

***Disclaimer: This blog is created by Heidari Law Group for educational purposes. This article provides a general understanding of the law. It does not provide specific advice. By using this site and reading through this blog, there is no attorney-client relationship created between you and any member of Heidari Law. Further, due to the constant change of the law, some parts of the information above may no longer be good law.