Auto InsuranceQuestion 25 of 215
California Underinsured Motorist (UIM) coverage applies when:
a.The at-fault driver has no insurance at all
b.The insured has a single-car accident with no other driver involved
c.The at-fault driver's liability limits are lower than the insured's UIM limits and have been exhausted by other claims
d.The insured's vehicle is damaged by hail
Explanation
California UIM coverage applies when the at-fault driver does carry liability insurance, but the limits are insufficient (lower than the insured's UIM limits) AND those liability limits have been exhausted by payment of judgments or settlements. The UIM coverage then pays the difference between the at-fault driver's limits and the insured's UIM limits, up to the policy's UIM amount. Uninsured driver = UM; underinsured = UIM.
Law Reference: ISO PAP, Part C — Underinsured MotoristsPractice all 215 questions free — no signup required.
Related questions on this topic
- California law requires drivers to carry which item in the vehicle as evidence of financial responsibility, ready to present on demand?
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