What Happens If the Other Driver Has No Insurance?

Uninsured Motorist (UM) Coverage

California law requires auto insurers to offer uninsured motorist (UM) coverage, though you can waive it in writing. If you have UM coverage, you file a claim with your own insurance company for your injuries and damages. Your insurer steps into the shoes of the at-fault driver and compensates you up to your UM policy limits. This is the most common and efficient path for uninsured motorist accidents.

Underinsured Motorist (UIM) Coverage

If the at-fault driver has insurance but their limits are too low to cover your damages, your underinsured motorist (UIM) coverage fills the gap — up to your UIM policy limits. For example, if the at-fault driver has $15,000 in liability coverage but your damages are $100,000, and you have $100,000 in UIM coverage, you can recover the additional $85,000 from your own insurer.

Suing the Uninsured Driver Personally

You can sue an uninsured driver personally. However, the practical reality is that most uninsured drivers don't have significant assets to collect from. A judgment against someone with no money or assets is often difficult to enforce. This option is worth pursuing if the at-fault driver has assets (a home, business, savings) — an attorney can investigate this.

Hit-and-Run Accidents

If you were hit by a driver who fled the scene, your UM coverage typically applies — but there are specific requirements. In California, there must generally be physical contact between the vehicles for UM coverage to apply to a hit-and-run. If there was no contact (e.g., you swerved to avoid a car that ran a red light), coverage may be more limited. Document everything and call the police immediately.

What If You Don't Have UM Coverage?

If you waived UM coverage and the at-fault driver is uninsured, your options are more limited: sue the driver personally (difficult if they have no assets), seek compensation through MedPay (medical payments coverage) if you have it, or pursue a claim under your collision coverage for vehicle damage. This is why UM/UIM coverage is so important — it's relatively inexpensive and protects you from other drivers' negligence.

How an Attorney Can Help

UM/UIM claims involve your own insurance company, which has its own interests. Insurers sometimes dispute the value of UM/UIM claims or deny them improperly. An attorney can negotiate on your behalf, and if necessary, take the claim to arbitration (as required by most UM/UIM policies) or litigation. Having an attorney levels the playing field.

Key Takeaways

• About 1 in 7 California drivers is uninsured
• UM coverage pays your damages when the at-fault driver has no insurance
• UIM coverage fills the gap when the at-fault driver's limits are too low
• You can sue an uninsured driver personally, but collection is often difficult
• Hit-and-run: UM coverage usually applies if there was physical contact
• UM/UIM claims involve your own insurer — an attorney protects your interests

Frequently Asked Questions