Understanding UM/UIM Insurance in Colorado
I’m reaching out for clarification regarding Uninsured/Underinsured Motorist (UM/UIM) coverage with my insurer, USAA, after a recent incident in a parking lot in Colorado. My car was hit, but fortunately, the other party left their information, and their insurance is currently handling the repairs.
However, when I contacted USAA about the situation, they mentioned that if I’d found my vehicle damaged with no information from the other party, I would have no recourse through my UM/UIM coverage. They indicated that in such cases, I’d be fully responsible for the repair costs unless I had collision coverage, which I don’t currently have.
I thought UM/UIM coverage in Colorado would help cover damages caused by another driver, even if their details weren’t available. The agent’s explanation suggested that without casualty information, I would need collision coverage to receive any benefits, as it operates separately from UM/UIM in Colorado.
Could someone clarify if this information is accurate? Should I consider updating my coverage?
It sounds like you’re navigating a tricky situation with your insurance coverage. Let’s break it down:
In Colorado, Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are designed primarily to protect you in case you’re in an accident with a driver who does not have insurance or does not have enough insurance to cover your damages. They typically apply in situations involving bodily injury or property damage when the at-fault driver is either uninsured or underinsured.
However, in your case, since you have the other party’s information and their insurance is handling the repairs, you are in a good position. If the other driver had been uninsured or there was no way to obtain their information, your UM/UIM coverage wouldn’t apply to vehicle damage in this context, which aligns with what the USAA representative stated. Your UM/UIM coverage does not typically cover situations where you can identify the responsible party; that’s where collision coverage comes in, as it would cover damage to your vehicle regardless of fault or other driver information.
If you were to have found your vehicle damaged without any note (hit-and-run), you would indeed be facing the possibility of paying out of pocket unless you had collision coverage, which is designed to cover damages to your own vehicle regardless of fault or driver identity.
Given these points, if you want to protect yourself further in the future against damage to your vehicle caused by incidents where the other party is unidentified or uninsured, you might want to consider adding collision coverage. This would provide better coverage for your vehicle in various scenarios, including the one you mentioned.
It’s always best to review your policy and discuss your specific needs with your insurance agent to ensure that your coverage aligns with your expectations and potential risks.