Article provided by the Sawaya Law Firm. Please visit our Web site at www.sawayalaw.com.
Colorado has one of the highest rates of uninsured drivers. If you are in a crash with an uninsured driver, you may fear that your medical bills and other expenses will go unpaid. A type of insurance called uninsured/underinsured motorist coverage, however, is available to Colorado drivers. While it does not solve every problem, it is a smart way to arm yourself against financial disaster.
Most of the auto insurance you buy will compensate other people or pay for damage to your car, in case of an accident. Bodily injury liability insurance and property damage liability insurance, for instance, pay for damages that you (or a member of your household or someone driving your car with your consent) cause to someone else.
How Does Uninsured/Underinsured Motorist Coverage Work?
You cannot count on other drivers to carry adequate auto insurance. Uninsured/underinsured motorist (UM/UIM) coverage protects you, the policyholder: When the other party in an accident has inadequate insurance and is at fault, your UM/UIM policy will pay you (within policy limits) what the other driver's insurance would have paid for your bodily damages. Bodily damages include medical bills, lost wages, and pain and suffering. Without UM/UIM coverage, your insurance company will not compensate you for bodily damages in an accident with an uninsured/underinsured driver.
You should look at your auto insurance policy to make sure you know what type of coverage you have. Uninsured/underinsured motorist coverage is useful and relatively inexpensive.
When You Need Medical Care After an Accident
If you have been in an auto accident and you need medical care, the first thing you should do, of course, is get the help you require. After that, however, you will have to think about who will pay your past and future medical bills.
If the other driver has auto insurance and the accident was the other driver's fault, you will want to seek a settlement from the driver's insurance company. It is advisable to consult with a lawyer before agreeing to any settlement. This can be a long process, however, and the insurance company will not pay your medical bills before the settlement is final.
Colorado's New Med-Pay Law
Most Colorado drivers who purchase or renew auto insurance after January 1, 2009, will have some medical payment coverage in their policies. Although policyholders may refuse this additional insurance in writing, and premiums may increase slightly if they do not, med-pay coverage will pay for $5,000 of medical expenses after a crash. This includes ambulance, emergency room and doctor services. It is a payment to the driver/policyholder and passengers, not the occupant(s) of the other vehicle in the accident. It applies whether or not you have UM/UIM coverage.
Although med-pay pays for some medical bills, a catastrophic accident is likely to require more than $5,000 of medical care. Securing a satisfactory settlement from the other driver's insurance company or your own insurance company may be difficult at first. Enlisting the help of an experienced lawyer could make the difference.