Everyone in Colorado is required to carry automobile insurance but what are the different kinds and how best can you protect your and your family if you're in a car accident? First, we'll discuss the types of insurance policies you can purchase. Then we'll give some guidance on what coverages to have depending on your situation.

What insurance is required? Every state, Colorado included, requires all drivers have bodily injury liability insurance (or BI insurance). Those policies provide coverage if you're in a car accident and someone is hurt. If you're at fault, your bodily injury liability insurance will apply. If the other party is at fault, their bodily injury liability insurance will apply. The state minimum car insurance coverage for private motorists (non commercial drivers) in Colorado is $25,000. Unfortunately, we've had many client seriously injured in automobile accidents and the other party has the bare minimum coverage.  

What happens if I'm seriously injured and the at fault party only has $25,000 of insurance? The second type of car insurance is uninsured/underinsured bodily injury insurance (or UIM). UIM coverage applies if the at fault party is uninsured or if you recover the full limits available under the bodily injury policy. We strongly advise purchasing as much UIM coverage you can afford. The premiums are relatively inexpensive when combined with your BI coverage and it's there to protect you and your family if you're seriously injured.

For example, if you're injured in a car crash and the at fault party only has $25,000 and your medical bills alone exceed that amount, you likely won't have any other source of recovery (although you can sue the person who caused the crash and try to recover personal assets but that is expensive and can be difficult) except under your own policy. That's where the UIM coverage kicks in. And having as much coverage as possible will provide protection if you're seriously hurt. Many insurance companies offer liability and UIM umbrellas (policies on top of your existing BI coverage) up to $2,000,000 or more depending on what your underlying bodily injury liability limits are.  

To summarize, we encourage you to talk with your insurance agent to discuss your current policy and purchase as much UIM coverage you can. Hopefully you never need it but if you do, you'll want the most protection possible. 

If you've been hurt in a car accident and have any questions about your insurance policy, contact Kane Trial Law today at 303-919-7777 for a free consultation.