Definition
Underinsured motorist (UIM) coverage under California Insurance Code Section 11580.2 pays the difference between the at-fault driver's liability coverage and the injured victim's actual damages, up to the UIM policy limits.
In California Rear-End Collision Cases
UIM coverage is critical in rear-end collision cases where the at-fault driver carries only California's minimum liability insurance ($30,000/$60,000 under SB 1107). If your damages are $80,000 and the rear driver carries only $30,000 in liability, your UIM coverage pays the remaining $50,000 (subject to your UIM limit). UIM coverage is offered with every California auto policy and is inexpensive relative to its value.
California Law Context
California rear-end collision law applies this concept within the framework of Vehicle Code Section 21703's rebuttable presumption of fault, the eggshell plaintiff rule, pure comparative fault from Li v. Yellow Cab Co. (1975), the two-year statute of limitations under CCP Section 335.1, and uncapped economic and non-economic damages.
Frequently Asked Questions
What is Underinsured Motorist Coverage in California rear-end collision law?
Underinsured motorist (UIM) coverage under California Insurance Code Section 11580.2 pays the difference between the at-fault driver's liability coverage and the injured victim's actual damages, up to the UIM policy limits.
How does Underinsured Motorist Coverage affect a California rear-end collision claim?
UIM coverage is critical in rear-end collision cases where the at-fault driver carries only California's minimum liability insurance ($30,000/$60,000 under SB 1107). If your damages are $80,000 and the rear driver carries only $30,000 in liability, your UIM coverage pays the remaining $50,000 (subject to your UIM limit). UIM coverage is offered with every California auto policy and is inexpensive relative to its value.
How does this interact with California's pure comparative fault system?
Underinsured Motorist Coverage interacts with California's pure comparative fault system from Li v. Yellow Cab Co. (1975) in rear-end collision cases. Even when Underinsured Motorist Coverage reduces or complicates the plaintiff's claim, California's pure comparative fault allows recovery so long as the plaintiff was not 100% at fault. Recovery is reduced proportionally by any plaintiff fault, but the Underinsured Motorist Coverage principle generally operates to preserve the plaintiff's right to recover.