California Underinsured Motorist (UIM) coverage applies when:
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 MotoristsThis topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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