Do I Need Uninsured Motorist Coverage?

Clients frequently ask me what uninsured motorist coverage means and if it’s something they need to buy with their car insurance policy. In a perfect world, the easy answer would be no. Why pay for insurance coverage for other people who are already required by law to buy their own policies? Unfortunately, the reality in California is somewhat less idyllic. While it is true that California law requires all drivers to maintain sufficient financial responsibility (practically speaking, car insurance), the unfortunate truth is that far too many drivers are on the road without insurance coverage. In fact, as of 2004 -- the last year for which statistics are reported on the State’s insurance portal, just over 14% of California drivers did not have even the minimum insurance coverage required by law.

Many more drivers carry only the state minimums--currently $15,000 per person, $30,000 per incident, a level sufficient to cover only the most minor of accidents. As a result, California drivers are generally advised to carry Uninsured/Underinsured Motorist coverage riders on their car insurance policies. Here is an overview of what each term means and how such coverage can help to protect you and your passengers.
Uninsured Motorist Coverage

Uninsured motorist coverage (UM) is insurance provided by your own insurance company which will pay you, and your passengers, for injuries caused by another at-fault driver who does not themselves have any insurance coverage for the accident in question. In other words, it’s coverage you buy for other people who might hit you. This type of coverage is necessitated by the fact, as noted above, that so many California drivers don’t carry sufficient insurance of their own.

Frustrating as it may be to pay for insurance which is essentially designed to cover someone else’s actions, the benefits often far outweigh the costs. While the cost of obtaining UM insurance varies depending on the amount of coverage, the company providing the policy, and the vehicles or drivers for which coverage is sought, the costs of an accident often greatly exceed any such premiums; frequently to the tune of several thousand dollars.

For example, according to statistics provided by the California DMV, the average cost of a level 1 accident--the least severe accident type on their scale-- is over $12,000; a number that greatly exceeds the usual cost of retaining UM coverage for several years. In other words, a single accident in which your insurance company pays you out of UM coverage is likely to more than make up for what most people spend on such coverage.

Underinsured Motorist Coverage

Underinsured motorist coverage (UIM) is similar to UM coverage except that it steps in even when the other driver has insurance but where that person’s coverage is insufficient to pay for the extent of the damages they cause you. In other words, it’s insurance you buy to cover people who don’t buy enough insurance of their own.

There is one small catch to UIM coverage. The at-fault party’s available insurance is deducted from the amount your company will pay you out of your UIM policy. For example, let’s say that someone hits you and is found at-fault; causing you $30,000 in damages. Let’s further say that this defendant had state minimum coverage of only $15,000. Finally, let’s say that you have chosen to purchase UIM insurance in the amount of $30,000. After the dust settles, you’ll collect $15,000 from the offending party’s insurance carrier (their policy limit) and an additional $15,000 from your own UIM coverage ($30,000 in UIM coverage - $15,000 from the other party), for a grand total of $30,000 in damage compensation.

As this example demonstrates, a driver who did not buy UIM coverage would find themselves left with $15,000 in unpaid expenses as a result of the same accident. As with UM coverage above, the cost of obtaining UIM coverage is usually much less than the cost of covering the other party’s insurance gap out of your own pocket.

Health Insurance is not the same

Many people counter that they have health insurance that will cover the costs of treatment after an accident and ask if this will reduce the incentive to purchase UM and UIM coverage. The answer is a solid NO. Health insurance is not the same thing as accident insurance. Health insurance is not designed to compensate you for the whole of an accident, it only covers your medical expenses. Health insurance will not pay you for lost wages, will not pay to fix your car, and will not cover your passengers, unless they have their own health insurance coverage. Additionally, health insurance is often not comprehensive. Some medical treatments are not covered at all, others are covered only for a limited period of time, and still others are covered only after expensive co-pays and deductibles are met out of pocket.

Having health insurance will help to smooth the recovery process after a car accident, but it does not come close to replacing proper liability insurance in most situations. Don’t gamble with a patchwork of coverage when UM and UIM coverage are so readily available.

They’re required to offer

In California, insurance carriers are required to offer Uninsured and Underinsured motorist coverage with all car insurance policies that they sell in the state. If you need more information about obtaining this kind of coverage for you or your family, we strongly recommend that you contact your insurance carrier immediately for details. Further, if you have been involved in an accident, we can aggressively handle your case so you can recover all that is owed to you; including the claims that may fall under your UM and UIM coverage in your own insurance policy.

Early Parole for Juveniles is the Right Move for California

Elizabeth Lazano, center, was 16 when she was sentenced to
life in prison for a murder her boyfriend committed. 

“How we treat our children defines our society and defines us as human beings,” says California Democratic State Senator Leland Yee. Unfortunately, when it comes to criminal justice, the United States doesn’t have a great record with regard to child defendants. Currently California has over 6,500 inmates serving adult style sentences for crimes they committed as children, 309 of these teens were incarcerated for life. While some of these kids may have deserved a harsh sentence, almost half were convicted as accomplices only and some are currently leading exemplary lives.

Elizabeth’s story

Inmate Elizabeth Lozano is one of them. Involved with an LA street gang in the early 1990s at the age of only 16, Elizabeth was present when her boyfriend shot and killed another gang member. Sent to Mexico by her frightened parents, Elizabeth returned to the United States two years later, then pregnant with her son and completely unaware that she was a wanted person. She was shortly arrested for the two-year old killing and was eventually sentenced to life without parole as an accomplice to the murder. Elizabeth played no direct role in the victim’s death.

Today, Elizabeth has most of a college degree and works as a prison counselor helping to keep other kids out of the gang lifestyle. She is now 37 years old and has spent more than 21 years in prison for a murder she didn’t herself commit. While there is no denying the tragedy of the life lost in Elizabeth’s case or the pain suffered by the family of the victim, it’s hard to rationalize the additional cost of having to detain Elizabeth for a life sentence.

No mandatory life sentences for kids

The United States Supreme Court agrees, at least partially. In 2012 the court ruled that mandatory life without parole was inappropriate for juveniles, even those who are tried as adults, insisting that judges must have the latitude to decide the appropriate sentence taking into account the reduced culpability of children and the special circumstances of the individual situation. In the last year, California has gone two steps further, first requiring the state parole board to consider early release for minors convicted as juveniles and later requiring the board to do the same for minors tried as adults, even those originally sentenced without the possibility of parole.

Governor Brown agrees

Signed by Governor Brown in September of this year, Senate Bill 260 gives prisoners like Elizabeth a second chance at life. Opponents of early release argue that the crimes these children committed warrant harsh sentences, a position that is hard to support given the fact that so many of the affected inmates were convicted only as accomplices. “Our hearts go out to those families [of victims], but if it turns out there's a way of salvaging another life, shouldn't we also look at that?," says Senator Yee in a recent interview, espousing the opinion of a growing majority of psychologists and behavior experts. “Petty much everyone agrees [these defendants have] less culpability,” says children’s rights advocate Elizabeth Calvin.

It’s the right thing to do

Children are our nation’s greatest treasure. When teens, especially young teens, commit crimes, it’s hard not to feel some of the blame as responsible adults. Locking these kids up for life because of mistakes they made in their youth is just too convenient a solution, one that often ignores the larger social problems which may be root causes of some of the crimes under consideration. Fortunately the California legislature recognizes this and is working hard to strike a better balance between protecting victims and salvaging the lives of young offenders.

What Happens When Both Drivers Are at Fault?

Most people understand the basic elements of liability in a car accident. If you hit someone, you’re responsible; if they hit you, they’re responsible. However in real life situations, things are usually not so clear cut. Real accidents have multiple causes and sometime it seems that no one, or everyone, is to blame. Historically the law has struggled with this dynamic, usually falling on the side of caution by choosing to assign the blame for a confusing accident to one of the involved parties under the theory that if you were mostly at fault, you should pay.

However, over the years this method lead to some inequitable results and California law has evolved to better assign rights and responsibilities in complicated tort situations. The modern theory, broadly called comparative fault, attempts to assign financial responsibility for an accident proportionally with actual responsibility. Sometimes called contributory negligence, this theory seeks to determine to what degree each party contributed to the incident and allows everyone to collect against, or deduct against any other party that added something to the accident.

Comparative Fault In California

Let’s say, for example, that Driver A and Driver B are involved in an accident. At trial it is determined that Driver B was 20% responsible and Driver A was 80% responsible. Let’s also say that both drivers suffered total damages $100,000 each. Under California law, Driver A is entitled to collect $80,000 from driver B; representing Driver B’s proportional contribution to the accident. Likewise, Driver B is entitled to collect $20,000 from Driver A, representing Driver A’s contribution to the accident. With offsets, Driver A will wind up with $60,000 from the incident (after paying their share of Driver B’s damages). In other words, both drivers are allowed to collect from each other relative to how they contributed to the incident.

Joint and Several Liability

A related concept addresses how multiple defendants, who each contributed to an accident, must share the financial responsibility of covering their victim’s damages. While this area of the law can sometimes get complex, the basics are as follows: Let’s say that Driver A is simultaneously hit by both Drivers B and C and incurs $100,000 in damages as a result. At trial, Driver B is determined to be 80% at fault and Driver C 20% at fault.

In theory, Driver C should only have to pay $20,000 of the damages; after all they only caused 20% of the accident. However, to spare Driver A, the victim, from the hassle of having to sue, and collect from, multiple difficult parties, the law demands that both Drivers B and C are liable to Driver A for the full amount of the damages until the entire $100,000 has been paid to Driver A (note: Driver A cannot collect more than $100,000 in total). Drivers B and C can later settle between themselves for any overpayment made by one of them, at which time they will be allowed to argue their relative contributions and responsibilities in a legal process called subrogation.

Even if you’re at fault…

The lesson, of course, is that even if your actions contributed to an accident, you may still be able to collect something for your damages. An experienced attorney will be able to help you determine exactly what your options are, allowing you to proceed armed with the information you need to protect your legal rights. Don’t delay, accident lawsuits are subject to a statute of limitations which means that if you wait too long you may jeopardize your rights.

Leaving the Scene Could Make You A Felon

Three-Year Old Tariyah Williams

When three-year old Tariyah Williams darted out of her yard into the street, Florida driver Eric Clayton barely had time to brake before hitting the little girl. Eric stopped, carried the child back to her yard, spoke a few words to witnesses, and abruptly left the scene of the accident. Tariyah later died from her injuries and Eric turned himself into the local police station. He is now facing up to 15 years in state prison on felony-hit-and-run charges. The irony; media reports suggest he may not even have been at fault in the incident and, if so, would likely have been able to walk away from the accident with nothing more than his memories to haunt him.

 

Take responsibility

Car accidents are serious and stressful enough. Exacerbating the circumstance by leaving the scene of an accident can turn an already difficult situation into a misdemeanor or a felony in California; even if you did not cause the accident.

Under California Vehicle Code 20002, drivers are required to do the following:

• Immediately stop your vehicle
• Give the other party your identifying information  (your name and current address) 
• If other parties are on the scene, provide your driver’s license and vehicle registration upon request. 
• If you are not the owner of the car you were driving, you must provide the name and address of the car’s registered owner.

 

Criminal charges

Failure to do the above could result in a misdemeanor hit and run charge. Misdemeanor hit and run charges carry steep penalties. If you are convicted you could face up to a $1,000 fine, or six months in a county jail. Even if the accident was not your fault!

Beyond that, if you injure or kill someone in an auto accident and flee the scene, you could be charged with a felony hit and run. A felony hit and run carries penalties including a fine of between $1000 and $10,000 dollars, and 16 months to 3 years in state prison. If someone was killed or suffered a permanent serious injury in the accident, the state prison sentence increases to two to four years.

  

Dangerous circumstances

In some circumstances, it might not be safe to remain at the scene. For example, if you need medical attention yourself, you absolutely should make sure that your injuries are treated; even if that means heading for the hospital. Additionally, exigent circumstances might make staying on the scene dangerous. At times, upset relatives or other witnesses may pose a threat or traffic or weather conditions might be unsafe. However, before you leave the scene of an accident, make sure that you have a concrete reason for doing so.

 

It’s the right thing to do

Regardless of who is at fault in an accident, all parties involved should stay on the scene and do whatever is necessary to help resolve the situation. Injured parties should be attended to, the police should be called, insurance and contact information should be exchanged, and efforts should be taken to clear the way for other traffic to avoid additional collisions. Even without a legal duty, these things help to make the roads safer for everyone and remember; if you were the injured person, you’d want someone to stay and help you.