What is UM/UIM coverage?

Complete Guide to UM/UIM Coverage

Why This Question Matters for Colorado and Utah Residents

Knowing if you need Uninsured/Underinsured Motorist (UM/UIM) coverage is vital in Colorado and Utah, where local roads see a higher-than-average number of uninsured drivers and costly accident claims. Not having this protection can leave you or your family facing massive expenses after a collision—especially with medical costs or vehicle repairs.

• Uninsured drivers are more common than you think: 14% of drivers (that’s 1 in 7) in Colorado and Utah are uninsured, which is above the national average.
• Medical and vehicle costs can quickly exceed minimum coverage: The average injury claim in Colorado is over $27,000, while many drivers carry only $25,000 (or less) in liability coverage—or none at all.
• Local risks increase the need for coverage: Rural accidents (Northern CO, rural Utah) often involve higher medical costs due to more severe injuries and slower emergency response.

What Most People Get Wrong

Many believe that since auto insurance is required by law, everyone will be covered in an accident. Unfortunately, not all drivers follow the law, and minimum limits are often far too low to protect you in a real crash.

Another common misconception is that UM/UIM coverage is expensive or unnecessary—when in fact, adding it typically costs less than $8–15 per month, and it provides protection that can save you tens of thousands of dollars.

The Complete Picture

UM/UIM stands for Uninsured Motorist/Underinsured Motorist coverage. It pays for your medical bills, lost wages, and sometimes damage to your vehicle if a driver who causes an accident either has no insurance or not enough to cover the costs. This coverage also helps in hit-and-run cases—common in urban areas like Denver and Salt Lake City.

While Colorado and Utah do not require you to carry UM/UIM, about 73% of Colorado policies include it—reflecting local risk realities. State minimums only go so far, and with the average vehicle repair in Northern Colorado topping $4,800 (after hail or a collision), or serious injury claims exceeding $50,000, the gap left by uninsured or underinsured drivers can be financial devastation. UM/UIM picks up where their insurance (or lack of insurance) stops—keeping you and your family protected.

Making the Right Decision for Colorado and Utah Residents

Question 1: Can you afford the risk if you're hit by an uninsured or underinsured driver?

Evaluate how a major accident—causing injuries or vehicle totals—would impact your finances if the other driver can't pay:

• The average bodily injury claim in CO/UT is over $27,000; severe crashes regularly exceed $100,000.
• Would paying for your medical bills or a new vehicle out of pocket create financial hardship?

Question 2: Do your driving habits increase your risk?

Local risks—such as commuting along I-25, living near high-theft areas, or driving rural highways—mean you're more likely to encounter uninsured drivers or suffer serious accidents. If you drive in these conditions, higher UM/UIM limits are especially important.

Question 3: Have you reviewed your policy limits recently?

It's easy to assume you have enough coverage, but many people are surprised to discover their protection runs out quickly after a big claim. Compare your current UM/UIM limits to your potential expenses, and consider raising them to match your real-world risks—especially as medical and repair costs keep rising faster than minimum requirements.