Uninsured And Underinsured Motorists Laws

Understanding Colorado’s Uninsured Motorists Law For Victims In Colorado

Colorado follows an at-fault system for car accidents. This means that if two drivers get into a car accident, the car insurance company of the at-fault party will be held liable for paying the cost of damages caused to the other driver.

All drivers are required to carry minimum car insurance coverage, but there are instances where some drivers don’t carry any at all. This is where having your own UIM or UM motorist coverage can help you recover the compensation you may be entitled to after the car accident. If you’ve been injured in a car accident in Colorado Springs with an uninsured or underinsured driver, our team at Bachus & Schanker can help you recover the compensation you may be owed.

What Is Uninsured (UM) Or Underinsured (UIM) Insurance In Colorado?

Uninsured (UN) and underinsured (UIM) motorist coverage is an optional insurance policy that you can add to your coverage limits. This insurance kicks in when you’ve been hit and/or injured by a driver who does not have any car insurance.

What Is Uninsured Motorist Coverage In Colorado?

Uninsured motorist coverage protects you if you’ve been hit by a driver who has no insurance coverage at all.

What Is Underinsured Motorist Coverage In Colorado?

Underinsured motorist coverage protects you if you’ve been hit by a driver who does have liability coverage, but their limits do not sufficiently cover the cost of your injuries and other damages.

What Is Liability Insurance In Colorado?

All drivers are required to carry minimum limits of liability insurance.

These limits include:

• $25,000 in bodily injury (per person).
• $50,000 in bodily injury (per accident).
• $15,000 in property damage (per accident).

How Does UM/UIM Coverage Work In Colorado?

Your uninsured and underinsured motorist coverage is designed to cover the difference between the at-fault driver’s insurance coverage and the total damages you’ve suffered, up to your UM or UIM policy.

What Happens If You’re Injured In An Uninsured Car Accident In Colorado?

After an accident with an uninsured driver, follow the same steps as any other crash — call 911, seek medical attention, exchange contact and insurance information (if available), and photograph the scene, your injuries, and any other evidence.

How Do You Pursue Recovery After An Uninsured Motorist Causes A Car Accident?

Begin by alerting your car insurance provider about your accident to begin the claims process. They will get in touch with the at-fault driver’s insurance company and begin review of your claim.

If the at-fault driver is uninsured, your uninsured motorist coverage will kick in to cover the difference you may be owed (up to your policy limits).

What If The Person At Fault In Your Car Accident Does Not Have Enough Insurance To Pay All Your Bills And Expenses?

If the at-fault driver does have insurance, but not enough to cover the cost of your injuries or damages, your underinsured motorist coverage will kick in to cover the difference.

Another avenue for recovering compensation may be filing a civil lawsuit against the other driver. However, it can be difficult to collect compensation even if you win a judgment as many drivers who do not carry any or sufficient car insurance coverage likely don’t have any personal assets you can pursue in a civil lawsuit.

Who Will Pay For Your Car And Medical Bills After A Hit-And-Run Accident?

Uninsured motorist coverage can cover your expenses after a hit-and-run accident. You’ll need to file a claim with your insurance company, explain that your accident was a hit and run, and submit proper documentation, such as photos of the accident. An insurance representative will review your claim to begin the payout process.

What Happens If You Get Caught Driving Without Insurance In Colorado?

If you get caught driving without insurance in Colorado, you open yourself to the following consequences:

• Court fines, reinstatement fees, and other financial penalties from your insurance company or the courts.
• SR-22 requirements
  • This is a certificate that you must file with the Colorado DMV for years proving that you are carrying the state’s minimum liability insurance. If there is a lapse in the required three years, you can trigger an automatic license suspension.
• Higher insurance premiums with your insurance company.
• No Pay, No Play law
  • Under this Colorado law, if you are driving without insurance and are involved in a car accident, even if you were not at fault, you could be barred from recovering injury and property loss damages you may be entitled to.

Is It Mandatory For Colorado Motorists To Carry UM/UIM Insurance?

No. Uninsured and underinsured motorist coverage is optional for Colorado motorists, though it’s highly recommended, as it can protect you when the unexpected happens.

What Is a “Setoff”?

Before 2008, a setoff was a mechanism used by insurance companies to determine payout in UM and UIM car accidents.

In a setoff, if you had $200,000 in UM coverage, but the at-fault driver paid you $50,000 from their liability policy, your insurance company could deduct the $50,000 from your coverage and pay you only $150,000.

This setoff would leave you with a total of $200,000 in available coverage, instead of the full $250,000 of coverage you thought you had.

Under Colorado’s current law, setoffs are explicitly prohibited.

What Is “Anti-Stacking”?

Anti-stacking is another mechanism used by insurance companies that prevented victims from combining their UM and UIM coverage limits from multiple vehicles insured under the same policy or from separate policies you owned.

After 2008, Colorado drivers are generally allowed to stack their coverage, meaning if you have multiple vehicles on your policy, you can now combine the UM and UIM limits to significantly increase your coverage for a single accident.

Can “Setoff” And “Anti-Stacking” Be Used Together?

The landscape for setoff and anti-stacking in Colorado has changed and today, the two generally cannot be used together to reduce your compensation.

Do You Need a Lawyer To Make A Claim for UM/UIM Coverage?

You do not need a lawyer to file a claim for your uninsured motorist or underinsured motorist coverage. However, having an experienced lawyer oversee your claim can be a great way for you to recover the full compensation you may be entitled to.

An experienced attorney will push back against lowball offers from insurance adjusters and will help you navigate instances that could potentially minimize your settlement.

How Much Can You Get From A UM/UIM Claim?

All cases are unique and it really depends on the extent of the damages you’ve suffered. However, in most car accidents involving uninsured or underinsured drivers, you are rightfully allowed to recover the full compensation of the at-fault driver’s liability coverage, as well as the full coverage allowed by your uninsured or underinsured motorist coverage.

Get Help From Our Colorado Accident Lawyers

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