How do I use my Underinsured Motorist coverage if the at-fault driver's policy limits are too low to cover my damages in California?

To use your Underinsured Motorist (UIM) coverage, you must first recover the full policy limit from the at-fault driver's insurance and then make a claim against your own policy for the remaining damages. Step 1: Notify Your Insurer and Confirm Coverage Immediately report the accident to your own insurance company and inform them of a potential UIM claim. Review your policy's declarations page to confirm you have UIM Bodily Injury coverage and check its limits. Step 2: Pursue the At-Fault Driver's Insurance You must file a claim against the at-fault driver. Your goal is to prove your damages exceed their bodily injury liability limits and secure a settlement offer for their full policy amount. Gather all your medical bills, proof of lost wages, and other documents to support your claim. Step 3: Obtain Written Consent to Settle CRITICAL: Before you accept the at-fault driver's policy limit offer, you must get written permission from your own insurance company to settle that claim. If you settle without their consent, you will likely forfeit your right to any UIM benefits. Step 4: Finalize the Settlement Once you have written consent, you can accept the settlement check and sign the release form from the at-fault driver's insurance company. Keep copies of all settlement documents. Step 5: Formally File Your UIM Claim Submit a formal demand to your insurer for UIM benefits. Include all documentation of your damages (medical records, bills, lost income statements) and a copy of the settlement check and release from the at-fault driver's insurer. Your insurer will then evaluate the remainder of your claim. Important considerations: Your UIM carrier gets an "offset" or credit for the amount paid by the at-fault driver's insurance. For example, if your damages are $75,000, your UIM limit is $100,000, and you received $15,000 from the at-fault driver, your insurer is only responsible for up to $60,000 of your remaining damages. Note: In California, you generally have two years from the accident date to file a lawsuit or settle your UIM claim. This process can be adversarial, as you are making a claim against your own insurer. UIM coverage typically only covers bodily injury, not damage to your vehicle. This is general information and does not constitute legal advice. For complex situations or significant injuries, you should consult with a qualified California attorney to protect your rights.