The Truth About Underinsured and Uninsured Motorist Coverage in Colorado
When you think about car insurance, you probably consider coverage for damage you cause to others or damage others cause to you. However, there’s another critical aspect that many people overlook: underinsured and uninsured motorist coverage. These types of insurance are there to protect you when the person who causes your accident doesn’t have enough insurance (or any insurance at all) to cover your expenses.
Real-World Example: A Serious Accident with Inadequate Insurance
Let’s take a common situation. Imagine you’re in an accident caused by someone who has the state minimum coverage, which in Colorado is $25,000 per person for bodily injury, and $50,000 per accident for bodily injury. If your medical bills exceed that amount, you’re left with a major gap in coverage. That’s when your own insurance policy can kick in, assuming you have underinsured motorist coverage. This protection is essential for situations where the other driver simply doesn’t have enough insurance to cover the costs of your injuries.
What Does Underinsured Motorist Cover?
If you’re hit by someone whose insurance limits are lower than the cost of your medical bills, repairs, or other damages, your UIM coverage steps in to cover the difference, up to your policy limits. This coverage can help cover:
- Medical expenses
- Lost wages
- Pain and suffering
- Repair or replacement costs for your vehicle
It’s often offered as an optional add-on to your car insurance policy. In fact, all insurance providers in Colorado must offer un-insured and under-insured motorist coverage on a new or renewal automobile or motorcycle policy. If you decline to add uninsured motorist coverage, you must do so in writing, and if you are in an accident your insurance company must be able to prove that you have refused this coverage.
Uninsured Motorist Coverage and Hit & Run Cases
In Colorado, Uninsured Motorist (UM) coverage helps in hit-and-run accidents by covering your damages when the at-fault driver is unidentified or lacks insurance. Here’s how it works:
- Hit-and-Run Scenarios: If the other driver flees the scene and cannot be found, UM coverage can help cover your medical expenses, lost wages, and property damage.
- Covering Damages: UM covers your medical costs if the at-fault driver has no insurance. It can also pay for repairs to your vehicle if the driver is unidentified.
- Police Report Requirement: In Colorado, you must file a police report for a hit-and-run to qualify for UM coverage, as it helps prove the other driver was uninsured or unidentified.
Colorado law requires UM coverage unless you opt out in writing, and it ensures you’re protected if involved in a hit-and-run.
The Importance of UIM and UM Insurance Coverage in Accident Cases
A lot of people don’t realize that you can add underinsured and uninsured motorist coverage to your own policy for a relatively low cost. It’s one of the smartest moves you can make because, without it, you’re left in a tough spot if the other driver’s coverage falls short. Having this extra layer of protection is a no-brainer in today’s world where accidents happen, and not all drivers carry enough insurance.
If you have been in an accident cause by someone else’s negligence, we invite you to reach out to us here at the Law Office of Rodemer | Kane for a free case evaluation where we can look into the insurance and other specifics related to your case.