It appears that many car insurance commercials emphasize the idea that we can customize our coverage to fit our budget. For example, Liberty Mutual’s slogan is “Only pay for what you need,” and Progressive insurance offers “The Name Your Price” tool, which lets customers input a desired price for insurance and view coverage options that align with their budget.
Unfortunately, if you use this method to purchase your car insurance, you may be overlooking an essential coverage. One coverage option for any driver is whether to carry “Uninsured Motorist” coverage. Many drivers believe that since California law requires all drivers to carry automobile insurance, there is no need to pay for “Uninsured Motorist” coverage. However, this is a misconception.
- Even though drivers are required to carry car insurance, not everyone does.
It seems like every month we have a client who was in an accident with someone who didn’t have insurance. We can’t control other drivers’ actions. Some may not have insurance because they can’t afford it, while others simply choose not to because they don’t have much to lose.
So to protect ourselves against uninsured drivers, we need to have “Uninsured Motorist” coverage.”
- In the event of an accident, drivers are supposed to exchange insurance information. However, some drivers may leave the scene without sharing their insurance details, resulting in “hit-and-run” accidents.
In a hit-and-run, it doesn’t matter if the at-fault driver (the driver responsible for the accident) has insurance if they fail to provide their insurance information to the injured party. So, what can you do in such a situation?
You can protect yourself in hit-and-run accidents by having uninsured motorist coverage. This coverage can be used in a hit-and-run if certain conditions are met and specific steps are taken.
In the event of a hit-and-run accident, the following steps must be taken:
- First, there must be contact between your vehicle and the other vehicle involved in the hit-and-run accident.
- You must report the accident to law enforcement. If the accident occurs on the freeway, it would the California Highway Patrol (CHP). If the accident occurs in the San Fernando Valley or certain parts of Los Angeles, it would be the Los Angeles Police Department (LAPD).
- If the accident occurs in the Santa Clarita Valley or the Antelope Valley, it would be the Los Angeles County Sheriff. Certain cities, including Glendale, Burbank and Pasadena have their own police department, which means you need to contact that city’s police department.
- You must report the accident to your own insurance within 24 hours of the accident.
- The at-fault motorist has car insurance, but it’s not enough to cover your damages and injuries.
Uninsured motorist coverage also works as “Underinsured Motorist” coverage. If you carry uninsured motorist coverage that is more than the at-fault insurance coverage and his/her insurance is not enough to compensate you for your damages and injuries, then your uninsured motorist coverages makes up for the difference.
The following steps are taken when dealing with an underinsured driver:
- You must collect the full amount of money available to you from the at-fault party’s insurance policy or policies before moving on to this option.
- Your uninsured motorist coverage must exceed the amount you collect from the at-fault party’s insurance policy or policies.
- The amount of your uninsured motorist coverage will be reduced by the amount you collect from the at-fault party’s insurance policy or policies. For instance, if you have $50,000 in uninsured motorist coverage and collect $15,000 from the at-fault party’s insurance, you will have $35,000 in underinsured motorist coverage left after the deduction ($50,000 – $15,000).
It is a mistake for motorists to simply choose the cheapest insurance because they could be missing out on essential coverage that protects them in case the at-fault party: (1) has no insurance; (2) commits a hit-and-run; or (3) does not have sufficient insurance to compensate for damages and injuries.
This article is brought to you by Mason Rashtian of The Mason Law Firm, a full-service personal injury attorney and accident lawyer. We represent clients throughout California and Los Angeles County, including the Santa Clarita Valley, Valencia, Stevenson Ranch, Canyon Country, Newhall, the San Fernando Valley, Ventura County, Orange County, and Kern County.