With the economy still recovering, some drivers choose not to pay their automobile insurance. This can result in disastrous consequences from an accident. Others choose to only have the minimum coverages required by state law.

Having valid auto insurance is required in all 50 states. In Colorado, you can purchase uninsured or underinsured motorist coverages. Should you have these coverages? The answer is yes and here’s why:

Uninsured motorist coverage protects you, your passengers and in some cases, your property in an accident that is the fault of the driver that is uninsured. This coverage allows you to collect money for injuries suffered by you and your passengers. Hit-and-run accidents are also covered by uninsured motorist coverage.

Underinsured motorist coverage protects you, your passengers and in some cases, your property in an accident that is the underinsured motorist’s fault. This coverage allows you to recover damages that total over the amount of insurance the underinsured motorist had.

Some states mandate that drivers have uninsured and/or underinsured motorist coverage; however, Colorado is not one of them. These two coverages are relatively inexpensive compared to the overall cost of auto insurance.

If you are injured in an accident with an underinsured or uninsured driver, it is best to speak with a personal injury attorney with experience in such cases. The other driver’s insurance company may try to settle with you even before all your medical bills are in. The insurance companies only want to pay out as little as possible. An attorney can protect your interests and help you seek the compensation you rightfully deserve.

Source: Insurance.com, “Uninsured motorist coverage: Why you need it” Oct. 27, 2014