“UIM” is the the insurance acronym that describes protection against Uninsured Motorists and Underinsured Motorist. UIM covers YOU when you are involved in an auto accident where the “at fault” driver is either uninsured or underinsured. California is among the most financially dangerous places to drive in the country for three important reasons: 1) the minimum legal coverage is very low, 2) there is a large pool of California drivers on the road who are uninsured and/or unlicensed and 3) the actual cumulative costs of property damage, medical expenses and pain and suffering reaches six – seven figures quickly and easily (see my personal case experiences below).
The minimum amount of coverage to legally drive in California is very low: as of January 1, 2025 the minimum coverage for bodily injury or death to one person is only $30,000 ($60,000 for multiple occupants), and only $15,000 for property damage (often referred as 15/30/60 coverage).
- Example: You are lucky that the at-fault driver in your collision has the legal minimum amount of auto insurance. Their carrier will only cover up to $15,000 of the damages to your car, whether it's a clunker or a Ferrari. Without UIM any loss above the at-fault driver's coverage is your personal responsibility. You can try and sue the underinsured/uninsured driver in civil court, but it's unlikely they have the assets to cover your losses. A lawsuit is smply adding attorney fees to your out of pocket losses. However, if your auto (or umbrella) policy includes UIM coverage, your carrier will cover your loss up to your policy limits, effectively acting as if they represent the at-fault underinsured driver This is why you can't have enough UIM. Your loss in an auto accident can quickly and easily exceed $1 Million.
Official estimates are that about 20% of California drivers are uninsured. The true number is much higher due to the sheer number of unlicensed and undocumented drivers. How is that possible? There is very little deterrence to violation of the law. The “penalty” for driving without auto insurance is a nominal fine of between $100 and $200 for the first offense, and only rises to $200 – $500 for multiple offences. That’s substantially less than the annual cost of insurance, and the probability of getting caught is low. Enforcement and prosecution of unlicensed drivers is also a problem, as many California jurisdictions view it as a “sanctuary city” issue rather than a public safety issue. Yes, there is a possibility of a suspended license and/or impoundment of the car in both cases, especially for an at fault driver in a collision, but there is little time/effort/desire in most jurisdictions to seek any measure of prosecution – even in hit-and-run scenarios – which is a common occurrence when unlicensed drivers cause an accident. Their “cost” of running is towing, storage, and repair if their vehicle is worth it. In most cases their total cost will be less than the annual cost of insurance! Moreover, fleeing the scene avoids uninsured and/or unlicensed driver fines and immigration and/or other law enforcement scrutiny. Most importantly, the probability of an unlicensed/uninsured hit-and-run driver being located and prosecuted is minimal. Even when the owner of the vehicle is known, there is rarely a court admissible means to prove who was driving, and the courts have no interest in pursuing non-fatality auto accident cases.
My point is that you have the physical and financial risk, not the other drivers on the roads.
Actual Cases (aka “why this is personal to me”)
- Friday, November 18, 2022 – with my 13 year old son in the passenger seat after picking him up from school, enroute to a wild turkey hunt in Northern California, a 1 ton dually construction pickup truck filled with sand in the bed, crossed the road blocking both of my lanes on a blind curve. The driver was declared 100% at fault, but was uninsured. By the Grace of God, Jason was unharmed. I wasn’t as lucky. The impact tore the rotator cuff in my right shoulder, and there was just under $20,000 in repair costs to my 2016 Jeep Grand Cherokee (which was the “original” NEVRQIT Jeep). Thanks to the advice of my friend and Farmers Insurance agent, Mike Solum, I had added $250,000 in UIM coverage several years prior to the accident. Notably, after my call to him to report the accident, Mike showed up on the scene and helped in getting the hunting stuff out of the Jeep, which was stuck on the side of the road with the tow truck estimated to be a 4 hour delay. Thanks to Mike we made the trip, though it was really painful for me. This is the kind of professional you should be working with, whether it’s a banker, financial advisor, insurance agent, attorney, CPA or Doctor. If you’re not familiar with shoulder rotator cuff surgery, it’s not cheap, it’s painful, and it’s at least a 6 month recovery period. I lost 6 months of my normal life, that I can never get back, due to the actions of an uninsured driver. Following the surgery, Farmers settled at the UIM policy limit. Had the limit been higher, the settlement amount would have also been higher. The “Lesson Learned” is what I’m trying to share with you: Maximize your total UIM coverage! At my next Farmers policy renewal, I increased my automobile UIM (with Mike as my agent!) to $500,000, which was their maximum for a California Auto Policy at the time. My non-Farmers Excess Liability (aka Umbrella) policy did not offer any UIM benefits/riders/options, and I was not aware that some Umbrella policies actually DO offer UIM. You just have to know who they are and how to access the benefits.
Which, sadly, brings us to (personal) case study #2.
But before I share case #2… In the previous case study I mentioned that Farmers Agent Mike Solum (whose family experienced the Palisades fires in the same way as my family) is a good friend of mine.
To answer a question that you are likely thinking: “Yes” I’m Property and Casualty Licensed and “Yes” I can write my own policies as an agent with a different carrier which could save me some money, especially considering I would get compensated as agent of record.
Why would I renew our substantial household coverage with Mike and Farmers when I can save some money and write it myself? My answer is simple: I sincerely and deeply value personal and professional relationships, character, integrity and honesty. In our world today, those values need to be embraced, nurtured, and spread. Mike has earned my personal business, and our friendship is worth more than a few dollars in savings. Having said that, I want to earn YOUR business! (although Mike is a close second to deserving your collaboration!)
Case #2 “technically” started on January 7, 2025 because of the Pacific Palisades wildfire that never should have happened. There is MUCH that I could share about culpability, mismanagement, idiotic leadership, bad decisions, and criminal negligence but that’s for a different discussion. The relevance is that following the fires my family and I were displaced from our home and were staying in the Redondo Beach/Redondo Riviera area while our home was being smoke and ash remediated, which is where/why Case #2 happened.
- On March 7, 2025 I was stopped at a stop sign in the “Hollywood Riviera” in Redondo Beach, a 3 way stop, when a drunk driver came into my lane and hit me head-on, in excess of 50 mph. She ran through several stop signs, and came within inches of hitting a pedestrian in the sidewalk a block before hitting me. My 2022 Jeep Gladiator Mojave edition (notably built with a stronger reinforced frame than other Gladiator) saved my life. But it was a total loss, as was her BMW. She blew a 0.15 BAC and was arrested on the scene as I was being transported to the hospital. My nose was broken, my right biceps tendon was torn, and I had significant neck and back injuries, though it took nearly a year for us to know just how bad it really was. Her Auto policy has a $100,000 limit, which means she and her husband do not have umbrella coverage, which typically requires $250k – $300k in auto coverage. She and her husband do have significant assets, but they appear to be intentionally sheltered in Nevada Trusts. Suing them personally would take a lot of time, effort, and legal expense with no guarantee of ever receiving a penny, even with a jury award. As a CFP®, my opinion is that these trusts can be penetrated and are NOT actual “protection”, but they certainly complicate forensic discovery and recovery. As fate would have it, my employee benefits in 2024 allowed me to enroll in a $2 Million group Umbrella policy that gave me the opportunity to include $2 Million in UIM coverage. In California, UIM coverage is not “stacked”, meaning $500k in Farmers Auto UIM is not “on top of” her $100k in coverage. Rather, her $100k is subtracted from my $500k, in auto UIM coverage, so the total auto coverage is $500k (not $600k). Similarly, my fortuitous $2 Million in Umbrella (a Chubb Group Policy) coverage is also NOT stacked – meaning the highest cumulative UIM coverage I have is $2 Million for this accident.
To date I have had reconstructive surgery on my nose (It looks great but I’ve yet to have any modeling agencies reach out…I’m still irrationally optimistic!), and after a year of every possible non-surgical treatment for my neck injuries, on February 10, 2026 I had a two level Artificial Disk Replacement Surgery (C5 – C7) that I am currently recovering from. It’s been a long, painful year, and I have had pain every day since the accident, including today – March 28, 2026. I’ve missed surfing, skiing, golfing, and mountain biking with Jason. A monetary settlement, irrespective is the amount, cannot ever mitigate the priceless time and experiences with my family that the drunk driver is responsible for. While I am still feeling the torn biceps tendon, I’m taking every measure possible to avoid a third surgery on my right shoulder.
Honestly, even if the maximum UIM of $2 Million is achieved, it’s not a true mitigation of my losses. But it is far better than “zero”, and better than her $100,000 policy limit. My saving grace in all of this is God and my UIM Coverage.
Especially if you live in California, obtain as much in UIM as possible. It is not easy, and most agents don’t know the value and/or have the carrier resources to maximize your protection from a risk that virtually nobody discusses. In most cases that I’m aware of, $500,000 is the maximum you’ll get in California from your Auto coverage, and $1 Million is the maximum you can likely find with Umbrella coverage. In some unique circumstances (like mine with the group coverage) you may be able to obtain more. If that’s an option – take it! My additional annual premium to include UIM in my umbrella coverage was less than $800.
If this resonates with you, I would love to help. Call or email me and I’ll do everything possible to protect you from the very personal perils that I have personally experienced.
This past year I’ve learned to live every day like it’s my last, to say “I love you” as often as genuinely possible, and to ask strangers how THIER day is going (especially at the grocery store). Why? Because today is a Great Day to be alive!
Survive then Thrive, and NevrQit!
Rob