Getting in a car crash can feel overwhelming, but another layer of stress is when you find out the other driver is uninsured. Who will pay for the damages you suffer? Knowing your options for coverage and legal action can help you handle the situation.
How common uninsured drivers are in California
The Insurance Information Institute reported that California ranks 8th in the nation for the highest percentage of uninsured drivers in 2023. With roughly 27 million motorists on the road, the chance of encountering an uninsured driver in a crash is a real concern for anyone behind the wheel.
The rising cost of living and insurance rates have led some drivers to go without coverage, even though state law requires it.
California’s insurance requirements
In California, every driver must have minimum liability insurance to drive legally on public roads. The state requires at least $30,000 for injury or death to one person, $60,000 for injury or death to more than one person and $15,000 for property damage. These are minimums and may not cover all losses in a serious crash.
Your coverage options after an accident
Beyond the basic liability requirements, California law also mandates that all insurance companies must offer uninsured and underinsured motorist (UM/UIM) coverage to their policyholders. While you have the option to decline this protection, you can only do so by providing written rejection to your insurance company.
Uninsured motorist coverage can protect you if you get into an accident with someone without insurance. This coverage typically includes two parts that work together to address different types of losses:
- Uninsured Motorist Bodily Injury (UMBI): This coverage helps cover medical bills, lost wages and the pain and suffering that can result when the at-fault driver injures you or your passengers. You can choose coverage limits that match your liability limits, giving you extra protection for serious injuries.
- Uninsured motorist property damage (UMPD): This coverage addresses the damage done to your vehicle caused by the other driver. It has a limit of $3,500 and requires identification of the responsible party. You may want to check your policy, as UMPD limits and rules can vary by policy.
If you have collision coverage, it can help cover repairs to your vehicle regardless of who caused the accident, with you paying your deductible and your insurer covering the rest up to your car’s value.
Your insurance company may then pursue the at-fault driver through subrogation to recover the costs they paid. If successful, you could receive a refund of your deductible and the process usually happens automatically with updates provided by your insurer.
Legal action and time limits
If insurance coverage will not fully compensate you, you can sue the responsible party in civil court for damages. A personal injury lawsuit allows you to seek damages for medical expenses, lost wages and property damage beyond insurance limits.
It is important to know that California law has specific time limits for filing these claims: two years from the date of the accident for personal injury claims and three years for property damage claims.
How judgement is enforced
If you obtain a judgment against an uninsured driver, you can use different methods to collect what the driver owes. Wage garnishment lets you recover up to 20 percent of the debtor’s disposable income each pay period until you receive full payment.
A property lien offers another way to enforce a judgment when the debtor owns real estate. Recording an abstract of judgment with the county recorder creates a lien on any property the debtor owns in that county. An attorney can help you evaluate and explore all your options and set realistic expectations for every outcome.