Uninsured Motorist Coverage vs. a Third-Party Claim

The third-party claim

This is the standard route: the at-fault driver's liability insurer evaluates fault and damages and pays up to the policy limits. California's minimum liability limits are low relative to the cost of serious medical care, so limits are frequently the practical ceiling on recovery.

The UM/UIM claim

Uninsured motorist coverage applies when the at-fault driver has no liability insurance or cannot be identified in a qualifying hit-and-run. Underinsured motorist coverage applies when the at-fault driver's limits are lower than your UIM limits and are exhausted.

Although the claim is made to your own insurer, it is still adversarial: the carrier evaluates fault and damages the same way the other side would, and California UM/UIM disputes are typically resolved through contractual arbitration rather than a jury trial.

• Prompt notice to your own carrier is normally required
• Consent from the UIM carrier is generally required before settling with the at-fault driver
• UIM recovery is usually the difference between your limits and what the liability policy paid

Why the sequence matters

Settling the liability claim without first obtaining the UIM carrier's written consent can jeopardize the UIM claim entirely. Coordinating both claims — and confirming coverage in the declarations page before negotiating — protects the overall recovery.

Medical payments coverage

Many California auto policies also include MedPay, which covers a set amount of medical bills regardless of fault. It is separate from UM/UIM and can help keep treatment moving while the liability claim is pending.