Most states, including Colorado, require every driver to carry a minimum amount of auto insurance. The purpose of this insurance is to cover injuries and property damage the driver causes, thus protecting other drivers and passengers on the road. However, in spite of these laws, not every driver carries the proper amount of auto insurance at all times. When you are in an accident caused by a driver who does not have enough insurance, Uninsured/Underinsured Motorist, insurance can provide you with the protection you need.
What Is Uninsured/Underinsured Motorist Coverage?
Uninsured motorist coverage, or UI, is a type of insurance that is similar to the liability insurance you are required to carry by law. However, instead of protecting others, UI is designed to protect you. This insurance applies only when another driver who is not properly insured causes you a financial loss.
There are two main types of uninsured/underinsured motorist coverage: property damage and bodily injury. The “property damage” portion of this policy covers the cost of damage to property, such as your car or home. The “bodily injury” portion, on the other hand, covers lost wages, hospital bills and other expenses related to a physical injury you or someone else in your vehicle may have sustained in the crash. Both of these coverages are similar to the property damage and bodily injury coverage found on your standard policy, except that they pay benefits to you instead of other people on the road.
Is It Required?
While some states require motorists to purchase uninsured/underinsured motorist coverage to protect themselves in the event of an accident involving an uninsured driver, others do not. In the state of Colorado, this type of coverage is not currently required by law, and there is no fine or legal penalty for failing to purchase it. Nonetheless, because of the possible consequences you will face if you don’t have uninsured/underinsured motorist coverage, it is still a wise investment for most drivers.
What Happens if I Don’t Have it?
If you don’t have uninsured/underinsured motorist coverage and an uninsured driver injures you and/or damages your vehicle, you won’t be able to rely on this policy to pay your expenses. Instead, you will be forced to try to get the money directly from the person responsible for the accident. If he or she doesn’t have the funds to pay you, you may be out of luck. Depending on the circumstances, this can result in a significant loss that may even cripple you financially. For this reason, it is best to purchase uninsured/underinsured motorist as a form of protection, as well as for peace of mind.
How to Learn More
If you are interested in purchasing uninsured/underinsured motorist coverage to protect yourself and your property, talking to an experienced agent is the next step. An agent who understands this type of insurance can help you review your options, obtain quotes, and make the best decision moving forward. Contact Hopson Insurance Agency today to begin the process and get the coverage you need.