SAN JOSE, Spring 2026 — Abramson Smith Waldsmith, LLP secured a significant underinsured motorist arbitration victory against CSAA Insurance, obtaining a determination that its client’s damages totaled $882,624.33 following a rear-end automobile collision. The result established damages well in excess of the client’s available insurance coverage and secured payment of the full remaining $485,000 in underinsured motorist policy limits.
The case arose from a May 3, 2024, rear-end collision. The at-fault driver’s insurance provided only $15,000 in coverage. The injured motorist therefore turned to her own insurance company, CSAA, seeking benefits under the $500,000 underinsured motorist coverage she had purchased to protect herself in precisely this situation.
CSAA disputed the nature, extent, and value of the client’s injuries. The insurer emphasized her age, weight, and pre-existing medical conditions as alternative explanations for her medical complaints.
Abramson Smith Waldsmith challenged the insurer’s evaluation and proceeded to binding arbitration, presenting evidence of the client’s injuries, medical treatment, lost earnings, and the impact of the collision on her daily life.
After hearing the evidence, the arbitrator rejected CSAA’s valuation and determined that the client’s damages totaled $882,624.33.
The arbitrator’s determination substantially exceeded the client’s $500,000 underinsured motorist coverage limit and CSAA’s final settlement offer. After crediting the $15,000 recovered from the at-fault driver’s insurance, CSAA paid the remaining $485,000 in available policy benefits, together with recoverable arbitration costs.
“This case demonstrates the importance of challenging an insurance company’s assessment of an injury claim,” said Nina G. Shapirshteyn, a partner at Abramson Smith Waldsmith. “Our client had purchased substantial insurance protection, yet we had to proceed to arbitration to establish the true extent of her damages because CSAA would not offer compensation that reflected the full extent of her injuries. The arbitrator’s determination confirmed that her losses far exceeded the available policy limits.”
The result highlights the challenges injured motorists can face when seeking compensation from their own insurance companies. Underinsured motorist coverage is intended to protect policyholders when an at-fault driver lacks sufficient insurance, but disputes over the extent of injuries and the value of a claim can make obtaining those benefits a contested process.
By pursuing the matter through arbitration, Abramson Smith Waldsmith established the full value of the client’s damages and secured all remaining benefits available under her policy.
The Fight Is Not Over: Potential Insurance Bad Faith
Although CSAA has now paid all the available contractual policy benefits, the arbitration raises a separate and important question: Did CSAA act reasonably and in good faith when it evaluated and handled its own policyholder’s claim?
Under California law, insurance companies must fairly investigate and evaluate claims and cannot unreasonably withhold benefits owed to their policyholders. When an insurer violates those obligations, it may be liable for insurance bad faith, potentially exposing it to damages beyond the limits of the insurance policy, including compensation for financial and emotional harm, attorney fees incurred to obtain policy benefits, and, in appropriate cases, punitive damages.
The arbitration established the value of the client’s injuries, but it did not decide whether CSAA acted in bad faith. That is a separate issue.
Abramson Smith Waldsmith will pursue a bad faith claim against CSAA to hold the insurer accountable for its handling of the claim and seek additional compensation for any harm caused by unreasonable conduct.
“Obtaining the policy limits was an important victory, but it does not necessarily end the insurance company’s responsibility,” said Nina G. Shapirshteyn, a partner at Abramson Smith Waldsmith. “When an insurance company fails to fairly evaluate a claim and forces its own policyholder to fight for benefits that should have been paid, California law provides additional remedies. We intend to pursue those remedies on our client’s behalf.”
About Abramson Smith Waldsmith, LLP
Abramson Smith Waldsmith, LLP is a San Francisco-based trial law firm representing plaintiffs in serious personal injury, wrongful death, product liability, and insurance disputes throughout California. The firm’s attorneys have extensive experience litigating complex injury claims and pursuing compensation through trial and arbitration.
To discuss an injury or insurance claim, contact Abramson Smith Waldsmith at 415-421-7995 or www.aswllp.com.
Prior results do not guarantee a similar outcome; every case is different and must be evaluated on its own facts. This content is for informational purposes only and is not legal advice.