Underinsured Drivers in California: What to Do If the Other Driver’s Insurance Can’t Cover Your Damages
What Is an Underinsured Driver?
An underinsured driver is someone whose car insurance policy does not provide enough coverage to fully compensate for the damages they cause in an accident. According to the Insurance Research Council, in 2023, more than 1 in 6 drivers nationwide (18%) were underinsured.
California law sets minimum insurance requirements, but these minimums are often insufficient for serious accidents. The minimum liability coverage in California is now $30,000 per person for bodily injury and $60,000 per accident. In a catastrophic accident, medical bills alone can easily exceed these amounts, leaving you responsible for the difference. This is where underinsured motorist coverage becomes crucial.
How Underinsured Motorist Coverage Protects You
One of the best ways to protect yourself against underinsured drivers is by having underinsured motorist coverage on your own policy. This type of insurance may cover the difference between what the at-fault driver’s insurance pays and your total damages. In California, insurance companies are required by law to offer you underinsured motorist coverage, but you have the option to decline it by signing a waiver.
However, declining this coverage can leave you financially vulnerable. If the at-fault driver’s insurance isn’t enough, your own underinsured motorist policy can step in to cover your medical bills, lost wages, pain and suffering, and more.
Can I Sue the Underinsured Driver?
Yes, you can always sue the at-fault driver for the remaining costs. However, this option is often impractical. Underinsured drivers typically have limited assets, making it unlikely that you will be able to collect on a judgment even if you win the lawsuit. However, in some cases, it might be useful to file a lawsuit, especially in order to establish liability.
When Your Insurance Company Doesn’t Cooperate
In some cases, your own insurance company may refuse to pay your underinsured motorist claim, arguing that you were at fault for the accident or disputing the extent of your damages. Unfortunately, insurance companies sometimes prioritize their profits over fair compensation.
At The Law Offices of Ali Taheripour, we have seen this happen first-hand. In one case, our client’s insurance company refused to pay underinsured motorist benefits, falsely claiming that our client was at fault for the accident. We were forced to file a lawsuit against the at-fault driver, and the court found that the other driver was 100% at fault. Even then, the insurance company refused to pay.
We took the case further, suing the insurance company for fraud, bad faith, and breach of contract. Ultimately, the insurance company agreed to pay the policy limits because they recognized that we were fully prepared to go to trial to fight for our client’s rights. This case highlights the importance of having an experienced attorney who will not back down.
Contact The Law Offices of Ali Taheripour Today
Navigating the complexities of underinsured motorist claims can be overwhelming, especially when dealing with insurance companies that refuse to cooperate. At the Law Offices of Ali Taheripour, our team has experience helping clients in Los Angeles, Woodland Hills, and throughout California, secure fair compensation in cases involving underinsured drivers. Our team is committed to fight for your rights, including taking your case to trial.
If you or a loved one has been injured by an underinsured driver, contact The Law Offices of Ali Taheripour for a consultation today.