Underinsured motorist coverage is a type of insurance that helps protect drivers who are involved in an accident with someone who doesn't have enough insurance to cover the damages. In Colorado, it's recommended to have underinsured motorist coverage because it can help protect you financially in case you're involved in an accident with an underinsured or uninsured driver.
According to the Colorado Department of Transportation, there were 611 fatal accidents on Colorado roads in 2020, resulting in 648 deaths. Many of these accidents involved drivers who were either underinsured or uninsured, which can create significant financial and legal problems for those who are involved in the accident.
Underinsured motorist coverage can help protect you in two ways: first, if the other driver is at fault and doesn't have enough insurance to cover the damages, your underinsured motorist coverage can kick in to pay the difference. Underinsured motorist coverage can help cover the damages if the other driver is at fault and doesn't have any insurance.
It's worthwhile to note that underinsured motorist coverage is different from uninsured motorist coverage, which only covers damages if the other driver doesn't have insurance at all. Underinsured motorist coverage kicks in when the other driver's insurance isn't enough to cover the full cost of the damages.
In Colorado, the minimum liability insurance requirements are $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage. While these may seem like large amounts, they may not be enough to cover the full cost of an accident. Medical bills, lost wages, and property damage can quickly add up, leaving you with significant expenses if you're involved in an accident with an underinsured or uninsured driver.
By having underinsured motorist coverage, you can help protect yourself from financial ruin in the case of an accident. It's smart to speak with your insurance agent to determine how much coverage you need. This is based on your personal situation and the level of risk you face on the road.
Underinsured motorist coverage is a vital type of insurance to have in Colorado. With the high number of accidents that occur on Colorado roads each year, it's paramount to have the right type and amount of insurance coverage. This will protect yourself financially in case of an accident. By having underinsured motorist coverage, you can help ensure that you're covered in case of an accident with an underinsured or uninsured driver.