Uninsured and Underinsured Motorist Coverage, often referred to as UM/UIM coverage, is insurance you buy from your automobile insurance carrier to pay you benefits in the event that you are in an accident and the at-fault driver has low, or no insurance of their own. Colorado law requires that all automobile insurance companies offer such coverage unless it is waived by a person named on the policy. UM coverage is for the situation where the at-fault driver has no insurance. UIM coverage applies when the driver has some, but not enough insurance to cover all of your injuries. If you did not waive it, you have at least $25,000/$50,000 in coverage. The $25,000 is the most that one person can recover in an accident. $50,000 is the total amount the insurance company will pay for injuries suffer by more than one covered person who was also injured in an accident. Do not be confused by the shorthand; “$25k/$50k” is not $25k in UM and $50k in UIM. It is the single person/total person limit of either UM or UIM coverage per accident.
Do not be fooled either. You are not entitled to $25,000 (or whatever the limits are) automatically. Your insurance carrier will ask you to prove that you are entitled to what you are claiming. If you are in a car accident and your medical bills are $60,000, and the at-fault driver only has $50,000 in coverage, you should be entitled to at least $10,000 in UIM payments. In fact, you are entitled to more than just your medical bills. You are also entitled to pain and suffering, lost wages, and damages for any physical impairment or disfigurement because Colorado law allows you to recover these kinds of damages if you win a lawsuit. Your insurance carrier must include them when paying you on a UM/UIM claim.