Insurance companies are supposed to offer Colorado drivers who purchase automobile coverage uninsured and underinsured coverage as well.  Drivers are free to reject this type of coverage or choose an amount less than their liability limits.

Some people may not fully understand how this coverage helps them, even if their insurance agents or the company’s sales representatives emphasized  the importance of these benefits.

Uninsured motorist coverage

A driver who has this coverage can ask his or her own insurance carrier to pay compensation for his or her injuries if he or she is the victim of a hit-and-run driver or of a negligent driver who was not carrying liability insurance and has no other means of paying compensation.

Unfortunately, the police do not locate every hit-and-run driver even after a serious accident. Many other drivers on Colorado’s law ignore the law about carrying auto liability insurance for a number of reasons. Uninsured motorist coverage can help an injured motorist, or a family, out in these situations.

Underinsured motorist coverage

There are also many driver who buy just enough insurance coverage to keep themselves able legally to operate their vehicles. However, the amount of insurance they have may not be nearly enough to pay compensation should that driver negligently cause a serious injury.

After all, most drivers need only have insurance in the amount of $25,000 per injured person and a cap of $50,000 per accident.

A broken arm or broken leg can easily cost this much in terms of medical bills and lost wages, and many injuries are of course much more serious than broken bones.

A person who has underinsured coverage can have their insurance company help make up any shortfall.  The laws surrounding this coverage, however, are somewhat more complicated.