Mar 12 2008 0 Comments  

Uninsured and Underinsured Motorist Coverage - Auto Accidents

Beth Klein

Beth Klein

Effective January 1, 2008every automobile insurance policy in Colorado will be improved by anew Colorado Insurance Law which will helpinsureds receive thecoverage that they pay for if injured by an uninsured driver. This new lawwill effect the important auto accident coverage known as uninsured/under-insured motorist coverage (UM/UIM). UM/UIM coverage is thecoverage youpurchase in order to protect yourself and your family if you are the victim of a car accident and the person who caused the accidentdoesn't have insurance or hase too little insurance to pay for theinjuries and losses that they caused. Read the Changed to the Auto Accident Insurance Coverage Law Here BeforeJanuary 1, 2008an insurance company couldrefuse to pay the full coverage under an insured's policy through an "offset"of the amount paid by the at-fault driver's insurance company. Insurance companies were also able to uselanguage in their policies that prevented an insured who had multiple cars and multiple policies to add, or "stack," their own insurance. This meant that seriously injured people in this state could not benefit from all of the coverage that they purchased. The new law makesUM "setoff" and stacking provisions illegal for policies issued or renewed in Colorado as of January 1, 2008. This important change in Colorado law means that you will finally getfull coverage that you paid for. Carrie Frank, a member of the Board of Directors of the Colorado Trial Lawyers Association, worked with others to make sure that Colorado drivers get the full benefit of the insurance coverage that they purchased.
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