Underinsured & Uninsured Motorist Coverage

What’s the difference between Underinsured Motorist and Uninsured Motorist coverages? And why should I consider including the coverages on my auto policy?

The State of Colorado requires automobile owners to carry liability insurance. Unfortunately, the state required limits are low and there are still many folks that don’t carry insurance at all. Adding either of the coverages defined below can protect you financially in the event you’re involved in an accident with someone who carries low limits or no insurance at all.

Underinsured motorist bodily injury coverage:

Coverage that helps pay for your injuries caused by an automobile accident and the responsible party (other than yourself) doesn’t have adequate auto insurance.

Uninsured motorist bodily injury coverage:

Coverage that helps pay for your injuries caused by an accident and the responsible party (other than yourself) doesn’t have auto insurance or can’t be located (hit-and-run).