Why Colorado Drivers Need Uninsured Motorist (UM) Coverage

Why Colorado Drivers Need Uninsured Motorist (UM) Coverage

Why Colorado Drivers Need Uninsured Motorist (UM) Coverage

As of 2019, the number of uninsured motorists in Colorado was 16.3% of all drivers. This means that if you are involved in a car accident, there is a 16% chance that the at-fault driver is uninsured or doesn’t carry liability insurance. In such a situation, the at-fault driver’s insurance would have been the primary coverage. However, in the absence of their insurance, your uninsured motorist coverage can come in handy.

If you are involved in a hit-and-run with an uninsured vehicle, turn to Mintz Law Firm. We are dedicated to helping injured individuals throughout Colorado quickly get compensation and recover from the frustrating, debilitating, and perhaps even life-changing effects of a personal injury suffered in an auto accident.

What Is Uninsured Motorist Coverage?

In Colorado, uninsured motorist coverage is optional. Under Colorado’s current law, all insurers in the state of Colorado must provide uninsured motorist coverage equal to the policyholder’s current level of liability coverage for bodily injury unless this coverage is waived by the policyholder in writing.

  • $25,000 for bodily injury liability per person per accident
  • $50,000 in total bodily injury liability per accident
  • $15,000 in property damage coverage per accident

Uninsured motorist coverage covers or pays for:

  • The insured’s physical injury losses were caused by a hit-and-run driver
  • A driver with no automobile insurance

However, this coverage also has its limits and does not:

  • Protect the other driver
  • Cover damage to the insured’s vehicle

Uninsured Motorist coverage takes the place of the insurance the other driver should have bought. You can observe how important this coverage is in case of an accident with an uninsured party.

Why Is UM/UIM Coverage Important?

When you are in an accident with a driver who carries insurance, you will file a claim with his/her insurance company to pay for the damages they have caused you. However, if the driver does not carry insurance, you have two options: file a claim with your own insurance or file a personal injury lawsuit.

A driver who cannot afford automobile insurance is less likely to compensate you out-of-pocket or even in a lawsuit. With uninsured motorist coverage, you will receive compensation to offset certain expenses following the accident. This will protect your personal finances and bridge the gap between other types of insurance coverage and the actual cost of your damages. UM coverage is a valuable investment you should consider, as it can give you peace of mind.

What Happens When the Other Driver Is Underinsured?

It is important to note that uninsured motorist coverage protects you if the at-fault driver in an accident does not carry liability insurance. On the other hand, if the negligent driver’s liability limits are too low to cover the medical expenses of the injured victims, the underinsured motorist (UIM) coverage comes into play.

Therefore, UM coverage and UIM coverage play different but vital roles in an accident where you are not the at-fault driver. Buying car insurance is no small feat. There are different considerations you should take into account.

Do I Need Uninsured Motorist Coverage in Colorado?

While the state of Colorado does not implicitly require uninsured motorist coverage, it does require insurance providers to include it in your policy unless you specifically decline the coverage in writing.

This probably implies that you purchased uninsured motorist (UM) and underinsured motorist (UIM) coverage when you purchased your car insurance. But if you’re unsure about this, you can consult your insurance company to ascertain the same.

Important Changes to Colorado Insurance Law

All uninsured motorist policies issued or renewed in Colorado on or after January 1, 2008, are subject to the newly revised statute.

“Offsetting” Is No Longer Permitted

Insurance companies are not allowed to offset the amount paid under the at-fault party’s BI liability insurance against the insured’s UM/UIM liability coverage, allowing for potentially higher recoveries.

“Anti-stacking” Clauses Are No Longer Acceptable

Insurance companies cannot include “anti-stacking” clauses in their policies. If your insurance agent informs you that you may be able to save money by dropping additional premiums for your multiple vehicles, know that you may also limit your coverage and your insurance company’s UM/UIM liability in the event that you are involved in an accident.

Contact Expert Colorado Auto Accident Injury Lawyer Today

If you are struggling with the aftermath of an accident with an uninsured at-fault driver, you may want to enlist the help of seasoned attorneys in this area. You can count on seasoned Colorado personal injury attorneys from Mintz Law Firm. All of our attorneys have significant experience helping Colorado residents file claims with their insurance companies, giving you peace of mind to focus on your recovery.
Your lawyer will handle all negotiations on your behalf, calculate your damages, and gather sufficient evidence to help prove your claim. Get in touch now by filling out our contact form or calling us at (303) 462-2999.

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