Since Colorado is a fault-based car insurance state, drivers who cause accidents must pay for the damages that other drivers, passengers, and pedestrians experience. All motorists must carry minimum amounts of liability coverage to uphold this financial responsibility, but many drivers do not adhere to these laws. Click to learn more about Uninsured and Under Insured Motorists.
In these situations, uninsured/underinsured motorist coverage (UM/UIM) can provide compensation for injured Colorado drivers. While Colorado does not require motorists to purchase UM/UIM insurance, this optional coverage can help protect your finances following an unexpected collision.
What Is Uninsured Motorist/Under Insured Motorist Coverage?
UM/UIM coverage is a form of car insurance that provides compensation if you are in an accident with a driver who does not have car insurance or does not have enough insurance to pay for your damages. UM/UIM also provides funds in cases involving hit-and-run drivers.
All Colorado drivers must carry the following minimum amounts of liability coverage, although you can purchase higher amounts if you wish. Colorado insurers must offer UM/UIM coverage to their policyholders with policy limits equal to their current liability insurance amounts.
- $25,000 for bodily injury liability per person per accident
- $50,000 in total bodily injury liability per accident
- $15,000 in property damage coverage per accident
UM/UIM coverage provides funding for medical expenses and pain and suffering, but it does not protect any damage to your vehicle. Comprehensive and collision coverage, another optional form of insurance, provides compensation for vehicle repairs.
For example, if you sustain $10,000 worth of medical expenses in an accident and you have UM/UIM coverage up to $25,000, you will receive the full $10,000 to pay for your treatment. You will need to file additional claims for your vehicle repairs.
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Why Is UM/UIM Coverage Important?
When you are in an accident with another driver who does carry Colorado’s minimum insurance, you will file a claim with his or her insurance company to pay for your damages. These damages may include your medical expenses, vehicle repairs, lost wages, and even your physical and emotional pain and suffering.
If a driver does not have insurance, you cannot pursue this compensation pathway. You have two options at this point: file a claim with your own insurance company, or file a personal injury lawsuit. A driver who cannot afford to pay for car insurance will likely not be able to pay for your damages out-of-pocket, and if you file a lawsuit against him or her, you may not see compensation.
With UM/UIM coverage, you can receive compensation to pay for certain expenses following the accident, protecting your personal finances and bridging the gap between other types of insurance coverage and the actual cost of your damages. All in all, UM/UIM insurance is a valuable investment to protect your peace of mind.
What Current Laws Protect Colorado Drivers With UM/UIM Coverage?
Colorado law offers additional protection for drivers who carry uninsured and underinsured motorist coverage. Thanks to Colorado Revised Statute 10-4-609, insurance companies are required to provide the full benefits of UM/UIM coverage—even in cases where there may have previously been gray areas or coverage gaps. This statute was designed to close loopholes that sometimes left policyholders without the support they expected after a serious crash with an uninsured or underinsured driver.
Under these regulations, if you have UM/UIM coverage and are involved in a complex situation—such as a multi-vehicle accident or a collision where fault is disputed—you are entitled to recover the full amount of coverage you purchased. This law ensures your insurer cannot limit your compensation based on what the at-fault driver’s policy covers or through technicalities that once restricted payouts.
By updating and strengthening these statutes, Colorado gives drivers added peace of mind, knowing that their optional UM/UIM coverage truly works to safeguard them financially when they need it most.
Do UM/UIM Benefits Follow the Person or the Vehicle?
According to the Colorado Supreme Court, uninsured and underinsured motorist (UM/UIM) benefits are tied to the individual, not a specific vehicle. This means your UM/UIM coverage goes with you, providing protection whether you’re driving your own car, riding in someone else’s vehicle, or even walking as a pedestrian. The Court affirmed that insurance companies cannot limit these benefits solely to the insured car—your policy covers you personally, offering greater flexibility and protection in a range of accident scenarios.
How Do You File a UM/UIM Claim After a Car Accident?
If you find yourself in a collision caused by an uninsured or underinsured driver, you’ll need to turn to your own UM/UIM coverage for help. Filing a UM/UIM claim follows a process similar to other insurance claims, but there are a few unique considerations worth noting.
Start by promptly notifying your insurance provider of the accident and your intention to file a UM/UIM claim. Be sure to provide all documentation you have gathered, such as the police report, medical records, repair estimates, and any photos taken at the scene.
It’s important to know your rights under Colorado law throughout this process:
- Your insurance company cannot raise your premiums for filing a UM/UIM claim.
- Insurers may attempt to settle quickly or offer less than you deserve, so carefully review any offers before accepting.
- If your claim is denied or the settlement feels unfair, you have the right to appeal and provide additional evidence to support your case.
- Keep a record of all communications with your insurer to help protect your interests.
Working with an experienced car accident attorney can be especially helpful when navigating UM/UIM claims. An attorney will understand how to negotiate with insurance companies, advocate for the compensation you’re owed, and help you overcome common obstacles in the claims process.
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Do You Need a Lawyer for Your Insurance Claim?
If you are struggling with the aftermath of an accident with an uninsured driver, you need an attorney on your side. Navigating the insurance process can be difficult in normal situations, and an uninsured at-fault driver or hit-and-run situation can complicate your claim.
Your car accident lawyer will have significant experience helping Colorado residents file claims with their insurance companies, allowing you to focus on your recovery. Your attorney can also handle all negotiations on your behalf, calculate your damages, and gather sufficient evidence to prove your need for damages. If you haven’t contacted your attorney already, schedule your consultation as soon as possible.
What to Do If Your UM/UIM Claim Is Denied
Even with all your paperwork in order, insurance companies may still deny your UM/UIM claim—or try to minimize their payout. If this happens, don’t panic. Here’s what you can do to protect your rights and maximize your compensation:
- Review the denial letter carefully. Insurance companies must provide a reason for their decision. Sometimes denials stem from missing documents or technicalities, which can often be resolved with additional information.
- Gather supporting evidence. Revisit your accident documentation, medical records, and correspondence with the insurer. Additional details or updated estimates may help bolster your claim.
- Don’t accept “no” as the final answer. In Colorado, you have the right to appeal a denied UM/UIM claim. Prepare a written appeal, addressing the insurer’s reasons for denial and supplying any new evidence that supports your case.
- Be wary of lowball offers. Initial settlements from insurers are rarely their best. Don’t hesitate to negotiate and don’t sign anything without reviewing all the terms.
- Seek legal support. Insurance companies are focused on their bottom line. An experienced car accident attorney can step in, challenge the denial, negotiate with the adjusters on your behalf, and—if necessary—file a lawsuit to pursue the compensation you deserve.
Remember, you’ve paid for UM/UIM coverage precisely to protect yourself in scenarios like these. If your claim hits a roadblock, assert your rights and get qualified help to ensure you’re not left covering the costs out of your own pocket.
