The most important part of your car insurance, UM/UIM. There are different options you can get with your car insurance such as comprehensive coverage, medical payments, etc., but the most important thing you can get is Unisured/Underinsured coverage. So why is Uninsured/Underinsured coverage so important to have on your plan? To begin, 1 out of 6 drivers in Colorado does not have car insurance. After that, state minimums are $25,000.00, therefore if you are in the hospital at all, you have likely far surpassed that amount. Underinsured/Uninsured covers you and everyone in your house (resident/relatives) if you are walking, if you are biking, if you are driving, it doesn’t matter, you are covered.
One recent case I had was a client who was hit while on a bicycle and had $260,000.00 in medical bills, however the person who hit my client only had $100,000.00 in car insurance. I was able to stack insurance policies to ensure that my client was fully compensated. You are able to stack policies by:
1. Owner of the Car’s Insurance
2. Driver of Car’s Insurance (if different)
3. Uninsured/Underinsured Motorist Coverage (UM/UIM)
a. Your Car (s)
b. Driver or Car’s Insurance (If Different)
c. Company Cars
Since this client had Uninsured/Underinsured coverage, the policies can be stacked so that the client is more than compensated for his injuries.
So, if you put a claim on your Uninsured/Underinsured will it raise your rates? The answer is no, there is an insurance regulation that specifically says that unless the accident is your fault and you put a claim on your Uninsured/Underinsured, your rates cannot raise nor can your policy be canceled.