Castle Rock, Colorado, is known for its small-town charm, stunning mountain views, and outdoor activities. However, even in a peaceful community like Castle Rock, car accidents can occur, leaving drivers and passengers vulnerable to injury, vehicle damage, and financial strain. Unfortunately, many individuals are unaware of the risks associated with being in an accident with an underinsured or uninsured driver. Here’s what you need to know to protect yourself and ensure you’re adequately covered.
Call our Castle Rock car accident attorneys today if you or a loved one have been involved in an accident with an underinsured or uninsured motorist. We have the legal skills and knowledge to help you fight for the compensation you deserve. To get started, call us at 719-722-3733 or contact us online to learn more.
Understanding Underinsured and Uninsured Drivers
An uninsured driver is someone who does not have any insurance coverage. Despite Colorado’s requirement for all drivers to carry liability insurance, not everyone complies, and some drivers might be on the road without coverage.
An underinsured driver is one whose insurance coverage is not sufficient to cover the damages in either a car or motorcycle accident in Castle Rock. In Colorado, the minimum liability limits are $25,000 per person, $50,000 per accident for bodily injury, and $15,000 for property damage. Given the rising costs of medical care and car repairs, this minimum coverage may not be enough in a severe accident.
Why You Need Uninsured/Underinsured Motorist (UM/UIM) Coverage
When an accident involves an uninsured or underinsured driver, you could be left covering the costs of your medical expenses and property damage. UM/UIM insurance coverage can help protect you in these situations, covering costs that the other driver’s insurance would typically cover. Here’s what UM/UIM insurance can provide:
- Medical Expenses: If you or your passengers are injured, UM/UIM coverage can help pay for your medical expenses, including hospital bills, rehabilitation, and other treatment costs.
- Lost Wages: If injuries from an accident prevent you from working, UM/UIM coverage may compensate for lost wages.
- Pain and Suffering: In severe cases, UM/UIM insurance may provide compensation for emotional distress or loss of enjoyment in life due to accident-related injuries.
- Vehicle Repair Costs: UM/UIM coverage can cover repair or replacement costs for your vehicle if it’s damaged by an uninsured or underinsured driver.
FAQs About UM/UIM Insurance
Understanding uninsured and underinsured motorist (UM/UIM) coverage is essential to protect yourself from unexpected financial burdens after an accident.
“Will my premiums increase if I use UM/UIM coverage?”
Typically, using UM/UIM coverage for an accident that wasn’t your fault should not cause your premiums to increase. However, some insurance companies may reevaluate your risk level after a claim. It’s a good idea to clarify this with your insurer when purchasing your policy. Remember, UM/UIM claims are often viewed differently than liability claims because they are meant to protect you from someone else’s negligence.
“Does UM/UIM coverage apply in hit-and-run accidents?”
Yes, most UM policies cover hit-and-run accidents. Since there’s no at-fault driver to hold accountable, your uninsured motorist coverage can step in to cover medical bills and vehicle damage, providing peace of mind after such incidents.
“How much does UM/UIM coverage cost?”
The cost of UM/UIM coverage is relatively affordable compared to other types of insurance. On average, it adds a modest increase to your monthly premium, often less than $10–$20, depending on your policy limits and driving history.
“Do I need UM/UIM coverage if I have health insurance and collision coverage?”
While health insurance can cover medical expenses and collision coverage can address vehicle repairs, UM/UIM insurance provides additional benefits. For example, it can cover lost wages, pain and suffering, and deductibles that health or collision insurance won’t cover. It also helps if the at-fault driver cannot pay out-of-pocket.
“What happens if the at-fault driver has minimal insurance, but I have significant injuries?”
If the at-fault driver’s insurance doesn’t cover all your damages, your underinsured motorist (UIM) coverage can fill the gap. For example, if your medical bills total $50,000 and the at-fault driver’s policy only covers $25,000, your UIM insurance can cover the remaining $25,000 up to your policy limit.
Addressing Misconceptions About UM/UIM Insurance
Now, let’s look at some common misconceptions many people believe about UM/UIM insurance:
“UM/UIM insurance is only for reckless drivers.”
This is a common misconception. UM/UIM coverage is not a reflection of your driving habits but rather a safeguard against other drivers’ lack of insurance or insufficient coverage. Even the safest driver can fall victim to an uninsured or underinsured motorist.
“I don’t need UM/UIM coverage because I trust other drivers to be insured.”
Unfortunately, not everyone complies with insurance laws. According to data, a significant percentage of drivers in Colorado are either uninsured or underinsured. UM/UIM insurance ensures you’re protected, regardless of another driver’s irresponsibility.
“UM/UIM coverage is too expensive and not worth it.”
The cost of UM/UIM insurance is minimal compared to the potential out-of-pocket expenses after an accident. Medical bills, lost wages, and vehicle repairs can quickly add up, and UM/UIM coverage provides critical financial relief when you need it most.
“If I don’t drive often, I don’t need UM/UIM coverage.”
Accidents can happen anytime, even during infrequent trips. Whether you’re running errands, commuting to work, or on a road trip, having UM/UIM coverage ensures you’re prepared for the unexpected.
“I can sue an uninsured driver instead of using UM/UIM coverage.”
While suing is an option, it’s often not practical. Many uninsured drivers lack the financial means to pay for damages, even if a court orders them to do so. UM/UIM insurance provides a quicker and more reliable path to compensation.
Steps to Take After an Accident with an Underinsured or Uninsured Driver
Immediately after an accident, you should:
- Ensure Safety First: Move to a safe location, if possible, and check for injuries. Call emergency services immediately.
- Collect Information: Gather the other driver’s contact information, insurance details (if any), and witness statements.
- Contact Your Insurance Company: File a claim with your insurance provider and inform them of the other driver’s insurance status.
- Consult a Legal Professional: An attorney experienced in underinsured/uninsured motorist cases in Castle Rock can help you navigate the legal aspects and ensure you receive proper compensation.
Do You Have Sufficient UM/UIM Coverage?
Colorado law requires insurance companies to offer UM/UIM coverage; however, you can opt-out by signing a waiver. Before waiving this coverage, it’s essential to consider the potential financial impact of an accident involving an uninsured or underinsured driver. Most insurance experts recommend purchasing UM/UIM coverage that matches your liability limits, ensuring you’re adequately protected.
How to Strengthen Your UM/UIM Coverage
- Assess Your Needs: Consider your financial situation and typical driving habits to determine an appropriate coverage limit.
- Review Your Policy: Make sure you fully understand your policy’s terms and limits. Work with an insurance agent if you need guidance.
- Regularly Update Your Coverage: As your circumstances change (e.g., new vehicle, increased income), adjust your UM/UIM coverage to match your current needs.
Seek Legal Assistance
Driving in Castle Rock is generally safe, but accidents can happen at any time, and it’s crucial to be prepared. By understanding your UM/UIM options and ensuring adequate coverage, you can drive confidently, knowing you’re protected against unexpected costs from accidents involving underinsured or uninsured drivers. A small investment in UM/UIM coverage today can save you from significant financial stress down the road.
Accidents happen, but you don’t have to face the aftermath alone. Reach out to Mountain States Injury Law at (719) 722-3733 or complete our online contact form for a free consultation. We’re here to fight for you.