COLORADO UNINSURED MOTORIST LAW CHANGES
There is urgent news for Colorado motorists regarding uninsured/underinsured motorist coverage. Senate Bill 07-256, which was passed into law during the 2007 legislative session, went into effect on January 1, 2008. The revised statute (section 2 CRS 10-4-609), allows for motorists to better protect themselves in the event of an accident.
Previously, the law allowed you to collect only the amount of insurance YOU purchased in the event of an accident.
The change allows you to claim the full amount of insurance purchased by you, and the insurance held by the party hitting you.
Here is how the new uninsured motorist coverage works”
Before January 1, 2008, if you have $100,000 coverage for uninsured motorist coverage, the person hitting you has $50,000 coverage; the amount you receive is their $50,000 plus $50,000 from your insurance, equaling $100,000.
After January 1, 2008, if you have $100,000 coverage for uninsured motorist coverage, the person hitting you has $50,000 coverage; the amount you receive is their $50,000 plus the full $100,000 from your insurance, equaling $150,000.
That additional $50,000 can come in handy in an accident. If you are seriously hurt and your car is totaled, $100,000 is not going to go far--get all you can just in case.
The trick to this is renewing your insurance policy anytime after January 1, 2008. You must renew your policy after January 1, 2008, in order to get this coverage. Your existing policy will not automatically change with the law at the first of the year.
Denver attorney Wade Eldridge, who serves as the Colorado A.I.M. attorney, said the change in the law is a good thing for all motorists, bikers in particular.
“We all know that an accident can get very expensive very quickly,” Eldridge said. “$100,000 can be used up in a serious medical situation pretty fast. Having that additional $50,000 could be a real help. It is impossible to understate how beneficial this is to anyone involved in an accident.”
Eldridge added that the coverage doesn’t cost much at all.
“I hate to sound like an insurance salesman, but the coverage is relatively inexpensive,” he said. “Anyone who rides should do this immediately. Even do it with your car insurance, not just your motorcycle. All you have to do is call your insurance carrier, make sure you have at least $100,000 in uninsured motorist coverage, and renew that policy, and you’re covered. Don’t wait for your current policy to run it’s term, just do it as soon as possible.”
There is more information about this beneficial change in the law, including a copy of the bill, at the Colorado Confederation Of Clubs website: www.colorado-coc.com. Click on the “biker issues” header, and start reading.