Do I Uninsured or Underinsured Motorist Coverage? What is it for?

Written by Jeremy D. Earle, JD

October 27, 2022

THE GOAL OF UNINSURED MOTORIST PROTECTION

The majority of states require drivers to have liability insurance whenever they operate a car. To travel on public roads, each car or driver must have liability insurance, which protects other drivers and pedestrians on the road if someone causes an accident. Regrettably, not every motorist has enough coverage.

Your uninsured or underinsured motorist coverage may kick in if you are injured, or your car is damaged due to an accident with someone who does not have the required insurance.

Understanding the specifics of these important kinds of insurance plans will help you better assess your policy and coverage, as well as manage the process of recovering compensation following an accident.

Along with your liability coverage, most insurance providers offer uninsured motorist coverage. In reality, unless the insured person specifically chooses uninsured motorist coverage, Colorado law requires insurance companies to include it in their liability plans.

Uninsured motorist coverage often accounts for a minor portion of your annual insurance price. Take into account the following advantages of uninsured motorist coverage:

If another driver causes an accident but does not have insurance, uninsured motorist coverage compensates for the damages to your car. If you don’t have uninsured motorist coverage and your car is severely damaged in an accident with a driver who does not have insurance, you may have to pay for repairs out of pocket.

If a driver flees the scene of an accident, you may be covered under the uninsured motorist policy. You might be stuck with a large payment if another car strikes you and flees the site of the accident without giving contact information or accepting responsibility, whether it’s a simple hit and run in a parking lot or a catastrophic collision on Colorado roads.

Uninsured motorist coverage might provide some protection if you cannot identify the driver of the car that hit you.

Uninsured motorist coverage may provide some compensation for physical injuries. Your insurance may provide some coverage if you are injured in an accident, depending on the kind of uninsured motorist coverage you have. The first $10,000 in medical bills will be covered by your medical payments coverage insurance.

 

If your injuries surpass that level, you may enjoy the advantage of uninsured motorist coverage’s bodily injury protection. This coverage does not begin until your medical payments coverage has reached the policy’s maximum level.

WHY WOULD A DRIVER NEGLECT HAVE INSURANCE?

Many consumers carefully consider deleting uninsured motorist coverage from their insurance plans to save money. What are the chances that they will need it? What are the chances that a motorist would elect not to carry enough liability insurance? Unfortunately, as many as 26% of Colorado drivers do not have insurance.

That implies that if you have severe injuries or significant property damage in an accident, there’s a one-in-four risk that the other motorist lacks appropriate insurance to pay your expenses. This delay might be due to several factors:

DRIVERS ON VACATION MAY BE ABLE TO HIRE A CAR WITHOUT INSURANCE

Many individuals get their driver’s license, but if they do not possess a car, they may not obtain auto insurance. They may not get appropriate insurance for their rental cars before leaving on vacation, which might land them in severe trouble if they cause an accident.

With so many people visiting Colorado for vacation at all times of the year, Colorado residents are responsible for having enough uninsured motorist coverage.

DRIVERS LET THEIR INSURANCE EXPIRE

Many drivers find it difficult to track when they need to pay for their insurance policy, particularly if they pay every six months or yearly rather than monthly.

Drivers may be unaware that their coverage has expired. They may throw a notice to the side or intend to deal with it later, only to forget about it.

Unfortunately, accident victims may have limited redress if a motorist causes an accident while the policy has expired.

DRIVERS MAY GAMBLE AND SIMPLY NOT PAY INSURANCE

Some motorists believe that insurance is overpriced. They may not want to spend money out of their pocket every month, particularly if they have a low-cost car and a clean driving record.

Unfortunately, even the safest driving record does not ensure that a person will not be involved in an accident. When uninsured drivers cause collisions that result in substantial car damage, the innocent motorist is often unable to compensate the at- fault party.

 

Even if you sue a motorist who does not have insurance, they are only liable for the amount of money they have. A motorist who cannot pay for auto insurance due to financial constraints is also unlikely to be able to pay for car damage.

DRIVERS WHO DO NOT HAVE A VALID DRIVER’S LICENSE ARE UNABLE TO GET INSURANCE

Drivers may lose their license for some time after being convicted of DUI or DWI. Unfortunately, some people prefer to drive regardless. If a motorist causes an accident within this time, they will not be insured.

UNDERINSURED MOTORIST COVERAGE: WHAT YOU NEED TO KNOW

Despite the number of persons who do not have insurance, most drivers have at least liability coverage. Unfortunately, many of those drivers continue to be underinsured. In the case of a collision, their insurance plans will most likely give the minimal minimum coverage, but they may not cover the entire amount of the damage to your car. Understanding the benefits of underinsured motorist coverage can make deciding whether or not you need it much simpler.

Underinsured motorist insurance provides financial protection for losses that are not covered by a normal insurance policy.

You drive a large, pricey SUV or a luxury car. Because you built your insurance coverage on the chance of colliding with a comparable car, it extends to cover major financial losses. Unfortunately, it won’t assist you if another motorist collides with your car, especially those who didn’t consider a luxury car when choosing insurance.

Underinsured motorist coverage assures that you will have the finances necessary to repair or replace your car regardless of who is at fault for an accident.

If the injuries you or your passengers sustain in a serious car accident exceed your medical payments coverage insurance and the limitations of the other driver’s insurance policy, underinsured motorist coverage may provide some financial protection. After you’ve exhausted your medical payments coverage, your underinsured motorist policy will kick in.

In most situations, your health insurance will cover your medical treatment if you are injured in a car accident; however, you will be required to pay a copay or deductible before your health insurance will kick in, which may leave many patients struggling to get the care they need. Underinsured motorist coverage may assist bridge the gap, particularly if your health insurance plan has a high deductible.

IS UNDERINSURED MOTORIST COVERAGE NECESSARY?

 

Many people may discover that they don’t need underinsured motorist coverage. You may opt not to buy underinsured motorist coverage if your car can be repaired or replaced adequately under a basic liability policy, particularly if your insurance carrier advertises it as separate coverage rather than including it as part of your uninsured motorist coverage.

However, in certain situations, you may want to make sure that your car is covered by underinsured motorist insurance, especially if:

Your car is worth more than $50,000. In the case of property damage, most conventional liability plans include $50,000 in coverage. If you drive a more expensive car, you may require underinsured motorist coverage to pay the difference. For example, if you drive a premium car, you should make sure you have enough money to replace or repair it if another car collides with yours.

You want to know that you’re well-protected. In most states, including Colorado, underinsured or uninsured insurance costs less than $100 per year or less than $10 per month. Because underinsured motorist coverage is inexpensive, it may provide great peace of mind for a little increase in your total insurance premium.

WHAT ARE YOUR OPTIONS FOR USING YOUR UNINSURED OR UNDERINSURED MOTORIST COVERAGE?

In a car accident, you were injured, or your property was damaged. So, what’s next? You must take the necessary procedures to fully use your uninsured or underinsured motorist coverage.

THE FIRST STEP IS TO GATHER EVIDENCE

Make careful you gather the necessary evidence as soon as possible following an accident. You must show your insurance provider that the accident had a place and that you suffered the losses you claim. Whether or whether you think the at-fault motorist has insurance, make sure you get the necessary information, which includes:

A copy of the police report.

If possible, take pictures of the accident site.

If feasible, take pictures of all of the cars involved in the collision. Before you drive away, if another motorist crashes your car and leaves the scene, make sure you file a police complaint and take photographs of your car.

Photographs of your wounds If you’ve had major injuries, you may wish to photograph them at different phases of recovery.

Copies of any medical records relating to the accident and your injuries, such as x- rays, medical bills, doctor’s statements, and so on.

The name and phone number of the person who caused the accident.

 

Copies of witness statements or witness contact information

You should establish a file as soon as possible after your accident that includes all of the pertinent information regarding your accident and allows you to quickly retrieve essential details as required.

You may then send the material to a lawyer or an insurance provider if necessary. Before sharing the file with others, make copies of any information in it. If you hand over the originals, make sure you provide them to someone you can trust, such as your lawyer.

STEP TWO IS TO GET IN TOUCH WITH YOUR INSURANCE PROVIDER

After an accident, you should call your insurance provider as quickly as possible. Some drivers, particularly if they did not sustain major injuries, may opt to phone their insurance carrier at the collision site. If you cannot wait to call your insurance provider due to a medical emergency, make sure you do it as quickly as possible. It will almost certainly:

Take your accident statement. Your insurance company will want to know if you caused or contributed to the accident, as well as who else was involved and what proof you have.

Verify the insurance coverage of the other motorist. Assess the severity of your injuries and car damage.

If you have collision insurance, your insurer may issue a payment to you soon after you file. It will then seek compensation from the other party’s insurance carrier for your losses and injuries.

In certain cases, even if you have uninsured or underinsured motorist coverage, you may have to wait to see what coverage the other party’s insurance would provide before receiving cash from your insurance provider.

Step three is the most important. Make contact with a lawyer. If your insurance company refuses to pay for losses over what the other party’s insurance company will cover, you may require legal assistance. A lawyer can help you examine your rights, identify what kind of coverage you should anticipate, and battle for the monies you need.

If you have incurred significant injuries or property damage due to your accident, you should contact a lawyer as soon as possible. The sooner you contact an attorney, the sooner he or she can begin working on your behalf to improve your chances of receiving full compensation for your injuries and property damage.

OUR ATTORNEYS CAN ASSIST YOU IN BETTER COMPREHENDING YOUR LEGAL RIGHTS.

 

Call Warrior Car Accident Lawyers at 719-300-1100 or contact us online if you reside in Colorado Springs, St. Petersburg, Colorado Springs, Colorado Springs, or any surrounding regions. We can assist you in determining what coverage the other party’s insurance carrier should provide. Make an appointment for a free consultation now.

Warrior Car Accident Lawyers

1902 W. Colorado Ave., Suite 100

Colorado Springs, CO 80904

719-300-1100

Free Consultation

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