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Protecting yourself and those you care about by purchasing Uninsured/Underinsured Motorist Coverage

What is uninsured/underinsured motorist coverage (“UM/UIM”)?

In addition to the liability insurance you purchase that protects others if you have a wreck and you are responsible, this is an additional coverage on your car policy that provides YOU with protection if you are injured by another driver who either doesn’t have any auto liability insurance (an uninsured driver) or who one who doesn’t have enough insurance to pay for your injuries and losses.

Colorado, like many states, has Motor Vehicle Financial Responsibility Laws that require all drivers to purchase and maintain minimum liability insurance for their negligent conduct. The amount drivers are required to purchase is only $25,000.00.

Colorado was ranked as the ninth highest state in the country for the number of uninsured motorists from 1992 through 2012. [1] The estimated percentage of uninsured drivers in the State of Colorado in 2012 was 16.2%. Id.

Why is it best for you and your family to purchase UM/UIM coverage?

This may be your only source of recovery if you are in a wreck and injured by an uninsured or underinsured driver. You should take care of yourself at least as well as you take care of others on the road. After all, you are far less likely to cause a wreck that those who don’t have insurance. Any number of drivers cannot obtain insurance because their licenses have been revoked for drunk driving or other serious reasons.

By law in Colorado [2], uninsured/underinsured insurance must be included in every motor vehicle liability policy unless the named insured rejects such coverage in writing. It is not in your interest to reject the coverage or insure yourself for less than the liability limits on your policy.

UM/UIM insurance is relatively inexpensive and provides important protection. For example, if you reject UM/UIM insurance and the other driver has only $25,000 in coverage, yet you are seriously injured, potentially unable to work or require special assistance or devices as a result of your injuries, the maximum insurance coverage available to you would only be $25,000.00. If, however, you have UM/UIM coverage, the amount of your coverage can stack on top of the other drivers and provide you with greater protection and resources for recovery.

Why would you pay a great deal to ensure others, but not take care of yourself in the event of a devastating collision resulting from the negligence of a financially irresponsible driver?

Please call us at Gaddis, Kin, Herd & Craw, P.C. at (719) 249-6240 if you’ve been in a serious collision and need answers about available coverage for your injuries and financial losses.



[1] This is according to the Insurance Information Institute’s Study from 1992-2012.

[2] See C.R.S. 42-7-102