underinsured auto insurance

What is Uninsured/Underinsured Auto Insurance?

by Cindy Chase

Unfortunately there are many drivers on the road without any type of insurance coverage. Some drivers have coverage but not enough to cover the damages from a serious accident. You may wonder what happens if you’re involved in an accident with one of these uninsured drivers. Will you be able to get the money needed to pay for damages?

Uninsured/Underinsured Motorist Protection (UI/UIM) was created for this purpose.  They are two separate issues but often purchased and grouped together on a policy. UI/UIM can protect you in an accident if the other driver has no coverage or inadequate coverage on their vehicle.

The other driver must be deemed legally responsible for the accident in order for UI/UIM to kick in. The coverage can pay for damage to your vehicle as well as medical bills for physical injuries received by you or your passengers during the wreck.

What is an Unisured/Underinsured Driver?

A driver is considered uninsured if he or she:

  • has no insurance coverage
  • has coverage that does not meet state liability requirements
  • has insurance with a company who refuses to pay

A driver is considered underinsured if he or she:

  • has insurance coverage with payment limits too low to cover the accident

Unfortunately not everyone is aware of UI/UIM and may not include the coverage in their policy. According to the Insurance Research Council, close to 25% of drivers may not have UI/UIM in some states. In fact, it isn’t even required in every state.

Colorado Uninsured/Underinsured Motorist Insurance

Colorado does require drivers to carry UI/UIM at a minimum of $25,000/$50,000 up to the amount of bodily injury liability limits selected. You are allowed to reject the coverage but it must be done in writing.

At Aspen Insurance, we always advise our clients to carry the Colorado state required UI/UIM minimums.  We also encourage our clients to evaluate their risk of loss in the event of the unexpected. In today’s world, the Colorado minimums are really just that, and an increase in coverage is often needed to protect your assets.

It’s hard to imagine but you could end up losing your hard earned assets if you’re in an auto accident with an uninsured/underinsured motorist.  We drive every day so the right amount of UI/UIM coverage  provides  peace of mind to know you are financially protected in an accident.

If you would like to review your auto policy, please call us at  303-777-2991 or send us an e-mail. We’re happy to do a review of your current UI/UIM coverage to ensure your peace of mind.