Colo. Regulators Advise Consumers on Extra Auto Insurance Coverages

Colorado drivers who reject uninsured motorist auto insurance must do so in writing, according to state regulators.

Online PR News – 29-September-2010 – – Although laws governing drivers in the Centennial State require that all motorists obtain an auto insurance liability policy before hitting the road, secondary types of protection — like that for uninsured and underinsured motorists — remain optional. For consumers in the market for a policy, the state department makes available resources for understanding this type of coverage.

Back in the mid-1990s, Colorado auto insurance protecting against uninsured motorists may have been more of a no-brainer than it is today; a 2000 report from the Insurance Research Council (IRC) estimated that between 1995 and 1997 the uninsured motorist rate in Colorado was 32 percent — the highest in the country. Almost ten years later, the IRC estimated that by 2007 the state’s rate had dropped by more than half, to 15 percent.

Even though this represents a significant decline, it still means that a driver getting into an accident on Colo. roads has a nearly one-in-seven chance that it will be with a person who lacks a policy. According to the state department of insurance, bodily injury damages incurred by the insured party in a situation like this would not be covered through a standard liability policy.

In order for this to be covered, the policyholder would need to have uninsured or underinsured motorist protection. In essence, it covers the gap between the coverage held by an uninsured or underinsured driver who is at-fault and the other driver’s liability limits. Coverage providers in the state are required by law to offer this type of protection, and consumers rejecting it must do so in writing. In addition, the department states that these coverages need to be offered in an amount that is at least proportional to the insured’s bodily injury liability limits.


To learn more about Colorado insurance issues, consumers can go to where visitors will also be able to begin the comparison shopping process by using the quote-comparison generator.

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