In California, where the sun usually shines but the traffic rarely lets up, the question isn’t just about whether you should have insurance, but what kind of shield you’re carrying. As of 2026, California’s insurance landscape has shifted significantly thanks to Senate Bill 1107, making it more important than ever to understand Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage.
Is Uninsured Motorist Coverage Mandatory?
Technically, no. You are not legally required to carry UM/UIM coverage to register your car or drive on California roads. However, there is a catch: California law requires insurance companies to offer it to you. If you decide you don’t want it, you can’t just say “no thanks” over the phone—you must sign a written waiver acknowledging that you are turning down this protection.
The 2026 Reality: New Minimums, New Risks
Starting in 2025 and continuing through 2026, California’s minimum liability limits have doubled. While this sounds like more protection, it actually creates a new gap:
Why this matters for UM/UIM: Even with these higher limits, medical bills for a serious accident can easily exceed $30,000. If the person who hits you is carrying only the “bare bones” minimum, they are now considered an underinsured motorist. Without UIM, you could be left footing a massive medical bill yourself.
3 Reasons You Absolutely Need UM/UIM in California
1. The “1 in 5” Rule
California consistently ranks among the states with the highest number of uninsured drivers. Recent estimates suggest that nearly 20% of California drivers are on the road without any insurance at all. If one of them hits you, UM coverage is often your only path to compensation for medical bills and lost wages.
2. Protection Beyond the Car
One of the best-kept secrets of UM/UIM coverage is its versatility. In many cases, your policy doesn’t just protect you while you’re driving. It can also cover you if:
- You are a pedestrian struck by an uninsured driver.
- You are riding your bicycle and get hit.
- You are a passenger in a friend’s car or a rideshare.
3. Hit-and-Run Protection
If you’re the victim of a hit-and-run where the driver is never identified, they are treated as an “uninsured motorist” by your insurance company. Without UM coverage, you may have no way to pay for your injuries unless you have premium health insurance with a low deductible.
Summary: To Waive or Not to Waive?
While it might be tempting to waive UM/UIM to save a few dollars on your monthly premium, the risk in California is exceptionally high. Think of it as “Self-Insurance”—you aren’t paying to protect the other guy; you’re paying to protect yourself from the other guy’s mistakes.
Expert Tip: In California, UM/UIM limits typically match your Liability limits. If you carry $100,000/$300,000 in liability to protect your assets, ensure your UM/UIM is set to the same level.