Colorado Uninsured/Underinsured Motorist Coverage

What is Uninsured/Underinsured Motorist Coverage? Many times when I am meeting with client they do not understand what uninsured/underinsured motorist coverage (UM/UIM) is and they do not know if they have this coverage. In more than half of those cases the clients waived UM/UIM coverage when they initially purchased their automobile insurance.

Colorado law requires that all drivers in the state have a minimum of $25,000.00 in bodily injury automobile insurance coverage. The law also requires that drivers have automobile insurance coverage for collision or property damage. These are the only automobile insurance requirements for the majority of drivers in the State of Colorado. There are exceptions to this general rule, such as in the circumstance of the operators of commercial trucks.

Following an automobile collision an injured party is entitled to receive compensation from the at-fault driver. This compensation is typically in the form of compensation for medical bills, lost wages, future medical needs, future wage loss and pain and suffering or emotional distress. In general, regardless of the extent of the injuries sustained an injured party is only able to recover the amount of the bodily injury insurance limits of the at-fault driver.

Uninsured/Underinsured motorist coverage protects you and your family if you or a family member is injured by an uninsured driver or, if you or a family member sustains injuries in excess of the at-fault driver’s automobile insurance coverage limits.

The following scenario is used as an example: A person is injured in an automobile collision. The injured party requires medical treatment and incurs medical bills in the amount of $100,000.00. At the time of the collision the at-fault driver has the minimum automobile insurance limits required by Colorado law, $25,000.00. Also, at the time of the automobile collision the injured party does not have UM/UIM insurance coverage. Despite the fact that the injured party has incurred medical bills in the amount of $100,000.00, in most cases the injured party will only be able to recover the limits of the at-fault driver’s automobile bodily injury limits of $25,000.00.

Using the same scenario as above, if the injured party had UM/UIM motorist coverage available the injured party would be able to access their UM/UIM motorist coverage to obtain compensation for the remaining $75,000.00 in medical expenses incurred.

It is important to understand what UM/UIM motorist coverage is when making important decisions such as selecting the appropriate automobile insurance coverage for your family. Be sure to fully discuss these important issues with your insurance agent when you are purchasing automobile insurance coverage for you and your family.

Please contact the law offices of Buxton & Luther, P.C.. We can assist you and provide you with representation if you are injured in an automobile collision.