Under-insured Coverage in California

[djs]

You are confusing yourself a bit on this.
The other persons property damage coverage pays for your car (if he is at fault). His Liability coverage pays for you, if you are injured.

Your underinsured BI coverage extends their liability coverage, in case there is a gap.

His property damage coverage (not his collision or comp coverage) pays for your car. You are right, everyone should carry enough coverage to pay for the damage they cause, but that's not required, so a lot don't.

Your own collision coverage extends the other persons property damage coverage. If you have collision coverage on your car, your car will get fixed (or totalled if the damage is enough). This isn't replaced by the very inexpensive UMPD coverage.

Dan

 

[FullAuto]

There is not uninsured/underinsured PD in my state. Our UM coverage is for BI only. If the person who hit you does not have enough liability coverage, your collision coverage covers your car. But our state minimum liability is 25/50/25 so it would cover $25,000 in property damage at the minimum.

 

[jwc]

Ah, yes, if I have collison coverage on my car, then I wouldn't have started this thread to try to get information.

Yes, I only have liability coverage on my car.

So what can be drawn from my experience, just for the sake of general information.
1. CA insurance law requires carriers to provide uninsured/underinsured BI, and uninsured PD coverage. It does not require carriers to provide underinsured PD. It is up to the carrier to decide if they want to provide underinsured PD.
2. If your carrier provides underinsured PD as an extension of uninsured PD coverage, make sure that it is stated in the policy.
3. If you only have liability coverage and uninsured motorist BI/PD, but no underinsured coverage PD, if someone hits your car, you better hope that he either has full coverage or is uninsured. If he only has liability with minimal coverage of $5,000 PD which cannot cover your car's repair, then you are out of luck to try to claim insurance against your own policy. The last option of course as mentioned by others here, is to file claim against the party at fault.
4. The bottom line, if you want to carry only liability coverage, find a carrier that will provide both uninsured and underinsured motorist coverage for BI/PD. This at least, you get up to $3,500 coverage of PD on your own car.

 

[djs]

JWC - your conclusions are still muddled.

There simply is NO such thing as underinsured PD coverage. Doesn't exist on any policy in California that I am aware of. The only way you get this is if YOU have collision coverage. If you prefer, you can change the name to Collision/Underinsured PD coverage.

Whether the other driver has collision coverage on his car or not is simply not relevant to you. His Property damage covers pays out to fix your car, not his collision coverage, ever.

California requires $5000 in property damage coverage. This is not really enough and there is virtually no difference in premium for most drivers between 5K and 10K. Granted, 10K still isn't enough, but it would at least cover most accidents.

How much was your car worth?

Dan

 

[jwc]

DJS:
>>>There simply is NO such thing as underinsured PD coverage. Doesn't exist on any policy in California that I am aware of.

This is why I said previously that even insurance agents are confused. I had talked to two insurance agents (Farmers and LM) and they said underinsured PD damage is covered as part of uninsured PD damage. Now, as I said, CA Department of Insurance also says there is no such thing. This is why I said, if insurance agent says it is covered, make sure it is stated in the policy. I now have the same understanding that there is no such thing as as underinsured PD, it is just that some agents are also not up to date on this.

>>>Whether the other driver has collision coverage on his car or not is simply not relevant to you. His Property damage covers pays out to fix your car, not his collision coverage, ever

After re-reading my post, I agree with you that if he does not have enough property damage coverage, I would have to file a claim under collision coverage on my policy. Basically, if one carries only liability with uninsured motorist (and no collision coverage), when someone hits your car and he does not have enough PD coverage, you are out of luck. But if he has No insurance, then you are covered for up to $3,500 PD on your car.


>>> How much was your car worth?
Let's just say that I am switching back to full coverage with collision.

 

[djs]

This is why I said previously that even insurance agents are confused.

Hopefully, not many
To be honest, this doesn't come up that often. Its one of those questions you get asked that if you don't stop and really think it through though, it's easy to answer the wrong question with the wrong answer, somewhat talking past each other.

Dan

 

[DiegoInsGuy]

What happens if I get hit by someone they have BI coverage but it's not enough coverage does my Uninsured BI coverage go into effect or do I need Underinsured BI coverage?

 

[djs]

Well, you technically need underinsured BI, but I don't know any carrier that splits these anymore. You buy one, you get both type of deal.

Dan

 

[Shane Eastman]

The Property damage portion of your Uninsured/Under-insured motorist coverage would not cover you for this claim. The property damage only applies in the event that the responsible party is not insured, my understanding is that he WAS insured, just inadequately? You may contact the second drivers insurance company about filing a claim, while he was not the responsible party in the accident, fault may be found that he did not leave enough space between the two of your vehicles? Its a long shot but about as long as taking the responsible party to small claims court because if he does not have enough money for decent coverage he probably wont have the assets to pay the judgement?