What Happens if I Get Injured in an Accident with an Underinsured Driver?

What Happens if I Get Injured in an Accident with an Underinsured Driver?

When an at-fault driver's insurance is not enough to cover your medical bills and lost income, you typically turn to your own auto insurance policy for help. Specifically, you file a claim under your Underinsured Motorist (UIM) coverage.

This is a part of your policy designed for this exact situation. It steps in to bridge the gap between your total damages and the at-fault driver's low policy limit.

Filing a UIM claim involves a specific process: you must first secure the maximum payout from the at-fault driver's insurance. Only then may you seek additional compensation from your own insurer. 

This process is filled with tedious paperwork and requires careful communication with insurance companies. Our role is to manage this process for you, ensuring every deadline is met and your claim is presented effectively.

If you have a question about an accident with a driver who doesn't have enough insurance, call us at (858) 529-5872.

First Things First: How Do My Medical Bills Get Paid Now?

After an accident, medical bills from the hospital, doctors, and specialists start arriving almost immediately. The at-fault driver’s insurance company will not pay these bills as they come in. They only pay in a single lump sum at the end of a claim, which takes months or even years. This leaves you with a growing pile of debt and the stress of collection notices.

Watching your savings dwindle to cover co-pays and prescriptions while you’re unable to work rewrites every aspect of your life. The pressure to settle for a low offer from the other driver's insurance grows as your financial stability weakens.

We help organize the payment process through a clear sequence of options available in California. The goal is to get your treatment covered now while we pursue the compensation you need for the future.

• Health Insurance First: Your personal health insurance (such as Blue Shield, Kaiser, etc.) is your first line of defense. We ensure providers are billing your health plan correctly.
• Medical Payments Coverage (MedPay): If you have MedPay on your auto policy, it is used to cover deductibles and co-pays your health insurance doesn't. It is a no-fault coverage, which means using it is simply accessing a benefit you paid for.
• Liens for Medical Care: For clients without health insurance or those needing specialized care, we have relationships with medical providers who agree to treat you on a "lien" basis. This means they agree to wait for payment until your case is resolved.

What Exactly Is Underinsured Motorist (UIM) Coverage?

Think of underinsured motorist coverage as a safety net you bought for yourself. You pay your premiums for it, and it's there to protect you from the financial fallout of an accident with someone who was not as responsible as you.

California law requires insurance companies to offer you Uninsured/Underinsured Motorist (UM/UIM) coverage when you buy a standard liability policy.  You only lack this coverage if you reject it in writing.

How It Works—An Analogy

Imagine your total damages (medical bills, lost income, pain) are a $100,000 bucket. The at-fault driver has a minimum policy of $30,000, which is the new minimum for policies renewing after January 1, 2025. Their insurance pours their $30,000 into your bucket. Your UIM coverage is what fills the remaining $70,000.

The “Gap” It Fills

UIM covers the difference between your damages and the other driver's policy limit, up to the limit of your own UIM policy.

• Bodily Injury (UIMBI): This covers medical expenses, lost wages, and pain and suffering.
• Property Damage (UIMPD): This may apply to your vehicle damage, though it works differently and sometimes your collision coverage is a better option. We advise you on the best path.

Your first action from home should be to find your insurance policy "declarations page." This one-page summary lists your coverage types and limits. Look for "Underinsured Motorist" or "UIM" and check the dollar amount next to it. This tells you the maximum amount of your safety net. If you cannot find it, we will request it from your insurer for you.

How Does a UIM Claim Work in Practice?

The process for a UIM claim is methodical and must be followed precisely. It is a series of legal requirements that must be met. Our firm handles these steps to ensure nothing is missed.

Step 1: You Must Exhaust the At-Fault Driver's Policy

Before you access your UIM benefits, you must first secure a settlement offer for the full policy limit from the underinsured driver's insurance company. For example, if the driver has a $30,000 policy, we must obtain a written offer for the full $30,000 from their insurer before moving forward.

Step 2: You Must Notify Your Own Insurance Company

As soon as you learn the other driver is underinsured, a formal notice must be sent to your insurer. You must get your insurance company's permission to accept the settlement offer from the at-fault driver. This is a mandatory step. If you accept their money without your insurer's consent, you lose your right to make a UIM claim.

Step 3: Proving the Value of Your Claim

Once you have permission, you accept the settlement from the at-fault driver. Your UIM claim then formally begins with your own insurance company. Your insurer now steps into the shoes of the at-fault driver. We must present them with the complete evidence of your damages:

• All Medical Records and Bills: To show the extent of your injuries.
• Proof of Lost Income: Pay stubs and employment records.
• Documentation of Future Needs: Expert reports on long-term medical care or diminished earning capacity.

Step 4: Negotiation or Arbitration

We negotiate with your UIM carrier for the remaining value of your claim. If they do not make a fair offer, UIM claims in California are typically resolved through binding arbitration, not a court trial. This is a process where a neutral third-party attorney hears the evidence and makes a final decision.

Will Filing a UIM Claim Make My Insurance Rates Go Up?

This is one of the most common questions we hear, and the answer provides some relief.

In California, it is illegal for an insurance company to raise your premiums for making a claim on your UIM coverage when you were not at fault for the accident. 

Why the Law Protects You

The purpose of this law is to encourage responsible drivers to protect themselves without fear of being penalized for using a benefit they purchased. You are not considered a higher risk for filing a UIM claim because the accident was not your fault. You are simply accessing your own safety net as intended.

The bottom line: do not let fear of a rate hike stop you from getting the compensation you need to recover. The law is on your side on this specific point.

What Mistakes Could Ruin a UIM Claim Before It Even Starts?

You don’t just file a form and get paid. There’s a legal structure to follow, and if you take the wrong step at the wrong time, even with good intentions, you might lose access to thousands of dollars in coverage you paid for.

Most people aren’t told this part. They expect their insurer to guide them. The truth is, the most common mistakes happen in the first few weeks after the accident, long before you even realize you need a UIM claim.

Mistake 1: Accepting the At-Fault Driver’s Settlement Without Permission

Your insurance company has the legal right to approve or deny any settlement with the underinsured driver before you accept it. This gives them a chance to preserve their own rights if they later want to pursue reimbursement.

If you accept the other driver’s insurance payout, even if it’s the full policy limit, without getting written permission first, your insurer may deny your UIM claim entirely. They are allowed to do that under California law.

What to do instead:

As soon as you receive an offer from the at-fault driver’s insurer, we notify your own insurance company and formally request their consent in writing. You must wait for their approval before signing anything.

Mistake 2: Missing the Deadline to Demand Arbitration

You generally have two years from the date of the accident to either resolve your UIM claim or formally demand arbitration.

That deadline isn’t flexible. And just because your insurance company is “still reviewing” your records doesn’t mean you’re protected.

If the deadline passes and no arbitration demand is filed, your claim may be time-barred, even if you have a valid injury and clear UIM coverage.

What to do instead:

Track the statute of limitations carefully, even if negotiations are ongoing. We calendar this deadline the day you hire us and begin preparing the arbitration materials early, just in case.

Mistake 3: Saying the Wrong Thing to Your Own Insurance Company

It’s natural to think your insurer is on your side. But once a UIM claim begins, their job shifts.

They now stand in for the at-fault driver, which means their legal responsibility is to evaluate your claim like an adversar, not like an ally.

If you give a recorded statement or casually downplay your symptoms, that recording may later be used to minimize your payout. They might point to something you said weeks or months ago to argue that your injury isn’t worth what you claim.

What to do instead:

Let us handle all written and verbal communication with your insurance company once the claim begins. If a statement is required, we’ll be present to guide you through it.

Mistake 4: Signing the Wrong Paperwork

After the at-fault driver’s insurer makes an offer, they’ll ask you to sign a release form. That form usually says you’re accepting their payment in full and giving up future claims.

But if the form is written too broadly, or if you sign it without the right language, your UIM claim could be blocked.

What to do instead:

We review all settlement releases before you sign them. In many cases, we add custom language to clarify that you are not releasing your UIM claim. This preserves your right to pursue your own insurance policy for the rest of your losses.

Mistake 5: Thinking You Don’t Need Help Because “It’s My Own Insurance”

You’ve paid your premiums. You’ve followed the rules. But once your UIM claim starts, the dynamics shift.

You’re no longer just a customer. You’re a claimant. And your insurer, like any business, will assess the case in terms of risk, cost, and liability.

That doesn’t mean they’re against you. It just means you need someone in your corner who knows what to expect.

What to do instead:

Reach out early. Even if you’re unsure whether you’ll need a UIM claim, a short call with our team can clarify your options and make sure no deadlines or technicalities get in your way.

Injury claims are built in the details. And UIM claims, more than most, are lost in the fine print. Our job is to catch every one of those details before they cost you the coverage you paid for.

You Followed the Rules. Let Us Make Sure Your Insurance Does, Too.

You did the right thing by carrying insurance to protect yourself and others. Now that you need to rely on that protection, you should not have to face a cumbersome claims process alone.

Your insurance company is a business, and it must balance paying claims with its own financial interests. Our role is to keep them accountable to the policy you paid for, ensuring the value of your claim is fully recognized. We handle the paperwork, the deadlines, and the negotiations so you focus on your recovery.

The first step is understanding your policy and your rights. Call Car Crash Ash Accident Lawyer for a straightforward explanation of your options.

Call us at (858) 529-5872.