California’s changing demographics have brought upon some unintended consequences. Among them is an increase in uninsured motorists. According to the Insurance Research Council, California has approximately 4.1 million motorists who drive without insurance, despite it being mandated by law. Nationwide, an estimated $2.6 billion was paid out on uninsured claims in 2012. This amount is up over 75 percent in the last 10 years.

What is uninsured motorist coverage?
It is when a driver of another car hits you and has no insurance to pay for your damages. Thus, always be certain to obtain uninsured motorist coverage with your own insurance so medical expenses and property damage can be covered.

What is Underinsurance?
Means the other driver does not have enough insurance coverage for your damages. Thus, always be certain to obtain a larger amount of underinsurance coverage so you will not be paying out pocket to make up the difference between what the other at-fault driver caused.

What Are the Minimum Liability Requirements?
According to California Insurance Code, the minimum liability coverage one must have is $15,000 for injury/death to one person; and, $5,000 for damage to property. As anyone who has ever been in an accident can attest, these limits are woefully inadequate and often cover only a fraction of the total damages an accident victim suffers.

Clearly, having adequate uninsured / underinsurance coverage is to your benefit. A reckless driver can also have their license suspended. Contact the attorneys at Hafif & Associates today for a FREE consultation.