As you can imagine, in many cases the at-fault party does not have enough insurance, or none at all, to fairly compensate the injured parties. If this occurs, "uninsured/underinsured motorist" coverage may come into play.
Uninsured/Underinsured motorist coverage is known as "first-party insurance coverage." Although not mandatory, most insurance polices issued in Colorado contain uninsured/underinsured motorist coverage. Here is an example of how this coverage works: If the at-fault party has $25,000.00 in coverage and the injured party has $100,000.00 in underinsured motorist coverage, that coverage will provide an additional $75,000.00 in available coverage (the at-fault party's insurance is "set-off" against the injured party's underinsured coverage).
In cases with serious injuries (more than $25,000.00 in harms and losses), it is imperative to investigate any sources of available insurance before resolving the case. In some cases, multiple uninsured/underinsured policies may "stack" on top of each other providing additional benefits.
As always, email or call us with any questions. The Kaudy Law Firm is here to help!
