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.  The estimated
percentage of uninsured drivers in the State of Colorado in 2012 was 16.2%.
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been revoked for drunk driving or other serious reasons.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 , 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, Herd, Craw & Adams, 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.
 This is according to the Insurance Information Institute’s Study