Is Underinsured Motorist Coverage Required in California?

California does not require drivers to carry underinsured motorist coverage. This type of coverage is offered as an option when purchasing an auto insurance policy, and insurers must provide the opportunity to accept or decline it in writing.

The decision to include it is left entirely to the policyholder, although insurance professionals often recommend it due to the number of drivers on the road who may carry only the minimum required liability limits.

What Does It Cover?

California underinsured motorist coverage may help pay for accident-related injuries if the other driver is at fault and their liability limits are insufficient.

Underinsured motorist coverage is designed to address situations where the at-fault driver’s insurance is not sufficient to cover third-party injuries. In such cases, this coverage can help bridge the gap between what the other driver’s policy pays and the actual costs incurred.

Uninsured motorist coverage does not address property damage in California. Comprehensive and collision coverage can help pay to repair or replace the insured vehicle, regardless of fault.

Why Should Drivers Consider This Coverage?

California’s roads are home to millions of drivers with varying levels of insurance coverage. There is a risk of being involved in an accident with a driver who carries only the minimum required insurance limits, which may be too low to fully cover severe accident-related injuries. In these scenarios, underinsured motorist coverage can help address the financial impact of injuries.

Drivers who finance or lease their vehicles may also be more inclined to consider this coverage, as lenders often have specific insurance requirements.

Learn More

Contact Beezo Insurance in Pomona, CA, for more information about your auto insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.