Underinsured Motorist | Personal Injury

Car Accident | Underinsured motorist

California law requires that every automobile insurance policy issued include as a purchase option, Underinsured motorist (UIM) (as well as uninsured motorist coverage (UM)) that is a type of injury insurance designed to compensate the responsibly insured driver for injuries caused by a financially irresponsible driver.

• Underinsured motorist (UIM) coverage applies when injury or death are caused by an insured vehicle but that vehicle is insured for an amount less than that of the underinsured limits carried by the injured victim.

Underinsured motorist coverage will not apply until the limits of the liability coverage carried by the at-fault driver are exhausted by settlement payment.  In addition, the UIM insurer is entitled to a credit / set-off, of the entire policy limit amount paid by the at-fault motorist’s insurance.

Example Scenario 1:  Henry runs a red light, and strikes Loren causing a t-bone auto collision. Loren suffers a torn knee ligament requiring surgery. She incurs $45,000 in medical expenses and suffers lost wages totaling $7,500.00. Henry, though, has only a limited $15,000 / $30,000 automobile liability insurance.  Henry’s insurance company tenders his full policy limits to Loren.  Loren also has insurance as well as UIM coverage of $100,000.00 / $300,000. Loren, with the help of attorney Juan J. Ordaz Jr., would fight to recover the full remaining balance of her $100,000.00 UIM coverage from her automobile insurance company [$100,000 – $15,000 = $85,000].

Underinsured motorist (UIM) | Claims

UIM injury claims are common and well established. They are pursued only after the insurance company of the at-fault driver has paid out their full insurance policy limits.

Insurer | Duty of Good Faith

A UIM insurance carrier has an implied covenant of good faith and fair dealing. This means that the victim’s insurance carrier has a duty to act in good faith when settling the petitioners (their insured’s) case (although this does not always happen).  An insurer’s breach of this duty provides a basis for an insurance bad faith action.

Underinsured motorist | Arbitration

If settlement cannot be reached with the UIM insurance carrier, the UIM injury claims proceeds through arbitration.  At arbitration evidence is presented to an arbitrator much like it would to a jury in a civil suit.

Ordaz Law, APC | Underinsured motorist

Juan J. Ordaz Jr. provides candid, hardworking and personal legal representation to individuals seeking an Underinsured motorist, personal injury lawyer in San Diego County.nnWe helped victims suffering from a variety of injuries, who have sustained their injuries through different types of vehicle collisions.  We believe that it is a necessity to represent people who have sustained traumatic and debilitating injuries, and suffered ultimate losses.

Call (619) 550-3617 today so that we may schedule your free and discreet consultation with a premier San Diego Underinsured motorist lawyer.

We are for Justice no Matter Who it’s for or Against.

Learn More:

What is the Statute of Limitations for a Personal Injury Action?

What Should You Expect from Your Personal Injury Attorney?

What Should You Expect from Your Injury Lawsuit?

Will My Personal Injury Case Go To Trial or Be Settled?

Car Accident | Determining Fault (Liability)

Blog: Personal Injury

Blog: San Diego Car Accidents

Sources and Useful Links:

Cal. Veh. Code Sec. 16056.

Ins. Code Sec. 11580.2(a)(1), (n)