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Optional Automobile Insurance Coverage

Uninsured/underinsured motorist coverage.  Uninsured/underinsured motorist (UM/UIM) coverage is optional in Colorado.  This coverage pays for the insured's bodily injury losses caused by a hit‑and‑run driver, a driver with no automobile insurance, or a driver of an underinsured vehicle.  UM/UIM coverage takes the place of the insurance the other driver should have purchased, or protects the insured when the at‑fault driver's vehicle is insured, but the bodily injury liability limits of his or her policy are less than the limits of the insured's UM/UIM coverage.  This coverage does not protect the other driver, and it does not cover damage to the insured's vehicle.  Under current law, all insurers in the state must provide UM/UIM coverage in an amount equal to the policyholder's current level of liability coverage for bodily injury, unless this coverage is waived by the policyholder in writing.  A policyholder making such a rejection may opt to carry a lower level of coverage or reject coverage completely.

Comprehensive and collision coverage.  Comprehensive insurance protects the insured against other types of damage to his or her vehicle, such as falling objects, fire, natural disaster, theft, or vandalism,.  Collision insurance pays for damage to a vehicle from a collision with another vehicle or object, or from a rollover.  While not required by law, collision coverage may be required by lenders as a condition of vehicle financing. 

Medical payments coverage.  An individual's health insurance may cover injuries sustained in an accident.  However, depending on the health insurance plan, the injured individual may be faced with high deductibles, copayments, or other significant medical costs.  As a supplement to health insurance, or in the event the individual does not have health insurance, medical payments coverage can be purchased as part of an automobile insurance package.  This coverage pays for medical expenses, including copayments or deductibles, for the insured vehicle driver and passengers, regardless of fault.  Medical payments coverage is generally offered in increments of $1,000, up to a maximum of $25,000.  Insurers are not required to offer medical payments coverage.