All motorists are required by law to have automobile liability insurance in force and effect during the operation of their motor vehicles. Unfortunately this is not always the case.
In California, the minimum liability coverage limits allowed by law are $15,000.00/$30,000.00. Where such limits are present, the negligent operator’s insurance company is limited to pay out no more than $15,000.00 to any one person injured in a single collision and no more than $30,000.00 to 2 or more people injured in a single collision regardless of the nature and severity of the injuries caused. There is no limit to “maximum” coverage limits available for purchase. An
insurance policy may or may not include uninsured motorist coverage which by law includes “underinsured” motorist coverage.
Uninsured motorist claims arise when a negligent operator does not have insurance or in “hit and run” scenarios where “contact” can be demonstrated. A 2 year statute applies to these claims, including claims of minors (who otherwise do not need to present a claim until majority is reached).
Underinsured motorist claims arise when damages exceed the available coverage limits of the negligent operator’s underlying policy. Once those limits are “exhausted” an injured person may present a claim to his or her own insurance company, under the uninsured motorist coverage, for additional damages if the injured person’s uninsured motorist coverage limits are higher than the negligent operator’s liability limits.
