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Resource Center: Automobile Insurance / Your Policy

Uninsured Motorists
In all but three states, auto insurance is required by law. Even so, the national uninsured motorist rate is estimated to be about 14% and may be as high as 30% in some states, according to the Insurance Research Council. The actual number is hard to pinpoint. Some studies compare the number of registered vehicles in a state with the number of insurance policies in force. Other studies look at the number of crashes reported or number of insurance claims filed involving an uninsured motorist. According to the Property Casualty Insurers Association of America, uninsured motorists are involved in more than 20% of fatal crashes in the United States. Some drivers cannot afford insurance or simply do not want to pay for it and are willing to risk getting caught. Penalties for driving uninsured differ from state to state, and can include fines, license suspension/revocation, losing your vehicle registration and license plates, vehicle impoundment, or jail time.

About uninsured/underinsured motorist coverage
Uninsured motorist coverage (UM) pays for your medical expenses if you are injured in a crash caused by an uninsured motorist. This coverage usually includes underinsured motorist coverage (UIM), which protects you if you are hit by a driver who is underinsured. It will help pay for your medical bills and vehicle repair costs that may exceed the at-fault driver's own policy limits. You also have the option to purchase uninsured motorist property damage coverage (UMPD), which pays for damage to your car. However, many drivers carry collision and comprehensive coverage instead, which pays for damage to your car in this situation, as well as other instances where your car could be damaged, such as a hailstorm or a collision with an animal. Uninsured motorist coverage is optional in most states, although you may have to sign a waiver saying you choose not to purchase it.

See auto insurance requirements in:
•	Colorado

What if I drive uninsured in Colorado?
Auto insurance is required in Colorado. You need proof of insurance both when registering your vehicle and anytime you are driving. Colorado compares its database of registered vehicles with a list of insured vehicles provided by all the insurance companies in Colorado. If the state finds a vehicle which is registered, but uninsured it sends the policyholder a notice. If you are caught driving without proof of insurance, the penalties are steep:

See auto insurance requirements in:
•	Four points against your driver license.
•	First offense: minimum $500 fine, and license suspension until you can show proof to the Division of Motor Vehicles that you are insured.
•	Second offense: minimum $1,000 fine and license suspension for four months.
•	Third and subsequent offenses: minimum $1,000 fine and license suspension for eight months.
•	Courts may add up to 40 hours community service to the above penalties.

Additional Resources:
•	Colorado Auto Insurance Requirements
•	Colorado's uninsured motorist database

Last Updated:
March 2, 2010 9:06 AM

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