Should I Get Uninsured Motorist Coverage in Colorado?

Although car insurance is required in most US states, over 13% of Americans lack auto insurance. This rate is even higher in Colorado, where nearly 17% of motorists on the road lack adequate coverage.

Motorists who lack UM coverage expose themselves to incredible risk. You may pay for the damages incurred in an uninsured motorist accident out of pocket, and filing a personal injury lawsuit against the at-fault driver may not yield the compensation you need. When an at-fault driver is underinsured or insured by a rogue provider, UM/UIM coverage may come in handy and insulate you from financial loss.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage is an auto insurance cover that protects you from financial liability if you are hit by an uninsured motorist. The policy pays for the treatment of the policyholder and any passengers on board at the time of the accident. This cover also incurs all liability suffered to repair damaged property. UM coverage is quite affordable, as it only adds a small cost to your auto policy.

In most cases, uninsured motorist coverage recognizes hit-and-run motorists as uninsured drivers. In the case of a hit-and-run, you should file a claim with your insurance company as soon as possible because there is a time limit. Time limits vary from one company to the other.

Typically, an uninsured motorist policy covers the following expenses:

  • Funeral expenses
  • Pain and suffering compensation
  • Medical expenses
  • Lost wages

The law requires at-fault drivers to bear any financial liabilities that may arise from an accident. Therefore, it follows that this policy’s importance must be balanced, especially if the guilty party is uninsured or underinsured. In such a case, UM coverage may help reduce the money you spend on medical fees and vehicle repairs. As you would expect, even though this cover is optional in Colorado, it would benefit you immensely in your bid to recover from an accident.

Uninsured Motorist PD vs. BI

Uninsured motorist property damage (UMPD) pays for your car’s repair. On the other hand, uninsured motorist bodily injury (UMBI) caters to the medical fees that may stem from an accident, including any passengers.

Insurance providers may offer UMPD and UMBI benefits as optional coverage, a statutory requirement, or an unavailable cover, depending on where you reside.

Overview of Colorado Uninsured Motorist Coverage

Colorado does not mandate motorists to procure uninsured motorist coverage. Even though this policy is optional in Colorado, it helps insulate drivers from the financial burdens of motor accidents.

A fault-based car insurance system requires all drivers to possess minimum liability coverage to satisfy the financial responsibility that may arise following a road accident. Unfortunately, a considerable number of drivers flout this law. This regrettable situation means that motorists should consider having the extra benefit of uninsured motorist coverage included in their policy statements to ensure protection from financial loss in case of an accident at the hands of an uninsured driver.

Colorado law requires insurance providers to offer motorists UM coverage. However, if a motorist does not want it, they can refuse the offer in writing. The newly revised statute applies to all UM coverage issued or revised on or after January 1, 2008. Additionally, Colorado law categorically forbids insurance companies from including “anti-stacking” policies in insurance policies.

Benefits of Uninsured Motorist Coverage in Colorado

Accidents are typically costly setbacks. However, policies like the UM/UIM coverage come in to reduce the financial burden suffered when one occurs. Generally, uninsured motorist coverage assumes the role of the insurance cover that the uninsured driver failed to acquire.

Under normal circumstances, if you are involved in an accident with an insured driver, the law requires the at-fault driver’s insurance provider to compensate you for the damage. However, there are two things you can do if an uninsured driver is at fault for causing an accident that results in bodily injury: institute a personal injury lawsuit or claim against your UM coverage provider. Since it is improbable that you will be compensated out-of-pocket by someone who could not afford insurance, making a claim request to your UM coverage provider is the most viable option. This is the most significant benefit of UM/UIM coverage.

The situation worsens if the accident is a hit-and-run and the authorities cannot track the culprit. However, if you have this policy, your insurance provider will fully cover all expenses arising from the accident, including medical bills and vehicle repair costs. This explains why most people involved in hit-and-run accidents often claim against their UM/UIM coverage if the at-fault driver cannot be identified.

Uninsured motorist coverage enables you to offset some expenses from an accident without breaking the bank. For instance, if an accident caused by an uninsured driver causes damages worth $ 20,000, the UM insurance policy covers the total amount.

Similarly, let us envision a situation where a party is involved in an accident that causes damages worth $60,000, but the at-fault driver’s insurance policy has a limit of $40,000. In such a scenario, the at-fault driver’s insurance provider will compensate you for the total amount, while the UM coverage covers the remaining $20,000. Ultimately, the uninsured motorist coverage offers drivers the ever-so-important peace of mind as they traverse Colorado.

Your Legal Rights in Uninsured Motorist Accidents

Regardless of your insurance policy limits and inclusions, you have many legal rights after a car accident involving an uninsured motorist. Auto accident law is one of Legal Help in Colorado’s primary practice areas, so don’t hesitate to call on our team to learn your options and get the legal help you need. We’re available 24/7 to take your call and get started.

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