Uninsured Motorist (UM) & Underinsured Motorist (UIM) Coverage
While California requires vehicle owners to carry Automobile Liability Insur-ance, there are still many drivers that do not purchase this insurance. Ac-cording to the Insurance Research Council, 25% of California drivers do not have mandatory auto liability insurance. California law requires drivers to carry at least limits of $15,000/$30,000. This means that the insurance company will pay no more than $15,000 for injuries per person and $30,000 per accident .
If your organization leases or owns vehicles, it is important that Uninsured Motorist (UM) coverage be added to the Business Auto Policy to protect against Uninsured Motorists. Also consider adding Underinsured Motorist Coverage (UIM) to protect against a driver who only carries minimum limits or limits that are not enough to cover your expenses. A comprehensive business auto policy should carry both UM and UIM coverage. We recom-mend that you purchase UM/UIM limits of at least $1,000,000 to protect against Uninsured and Underinsured Motorists.
Also, if you require employees or volunteers to use their own personal vehi-cles for business use, a good risk management practice is to recommend that they carry high enough UM/UIM limits to protect against uninsured and underinsured drivers. They should contact their personal agent for more detailed information.
Call us if we can be of any assistance.
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*This is intended for informational purposes only and is not to be construed as legal advice.