Yes. Even if you have excellent health insurance coverage I believe that it is important to have as much Underinsured or Uninsured Motorist Coverage (UIM Coverage) as you can afford. This coverage protects you if the other driver didn’t have any insurance or not enough of it to pay for your injuries. Why is this coverage so important? Because a 1/3 of all Colorado drivers don’t have car insurance and most drivers in Colorado only have the State minimum liability coverage of $25,000.
For example, if you are like most people you probably have a health insurance plan with a high annual deductible and co-pays. If you get into a car accident with an uninsured driver your UIM coverage can cover your deductible, lost wages, unpaid medical bills, co-pays, pain and suffering and more. The same is true if the other driver only has the state minimum policy limits of $25,000.00 and your damages exceed that amount.
Unfortunately, all too often I meet with clients who were advised by their insurance agent that because they have health insurance they don’t need UIM coverage. Either insurance agents don’t understand what they are selling or they don’t sell it because they can’t make any money from it. Either way it is bad advice.
Time and again we’ve seen how devastating the wrong insurance can be for people injured in automobile accidents in Colorado. So we’ve written quite a bit about how to buy insurance and deal with insurance companies.
