Insurance policies in Colorado generally follow the car rather than the driver. In most cases, the policy associated with a particular vehicle will cover accidents, regardless of who is behind the wheel, assuming they have the owner’s permission to drive the vehicle. This raises important considerations for vehicle owners and operators alike, regarding the extent of coverage and any gaps in it, one of which is the risk posed by uninsured drivers.

Colorado struggles with a relatively high rate (17.5%) of uninsured drivers. In the event of an accident caused by an uninsured or underinsured driver, those without Uninsured Motorist Coverage may find themselves facing major financial burdens.

Colorado Auto Insurance Laws

When someone owns a car and has it insured, the insurance policy only covers the vehicle itself. Regardless of who is driving the car at the time of an accident, the insurance attached to that car is the first line of coverage.

If a crash occurs, the policy held by the vehicle’s owner is considered the primary coverage for any damages or injuries caused by that vehicle. This includes situations where someone else is driving the car with the owner’s permission. But if the driver has their own insurance policy that covers them in any car they drive (like personal insurance), that may act as secondary coverage if the owner’s policy limits are exceeded.

For example, if you lend your car to a friend and they crash into another vehicle or pedestrian, your insurance policy would likely cover the damages and liabilities up to your policy limits. If your friend has their own insurance policy that clearly covers them while driving other people’s cars (also known as “non-owner car insurance”), their policy could potentially act as secondary coverage. This would be important if the damages exceed the limits of your policy or if there are any exclusions in your policy that their coverage can address.



Minimum Liability Coverage for Motorists in Colorado

All drivers in Colorado are legally required to carry a minimum liability coverage:

  • $25,000 per person for bodily injury
  • $50,000 total for bodily injury per accident
  • $15,000 for property damage per accident

This car liability insurance provides monetary protection against injury or property damage you may cause to another person by your car. In this case, it will pay for their hospital bills, lost income, property damage, and any legal fees you may have incurred.

Uninsured/Underinsured Motorist Coverage in Colorado

When you are involved in an accident caused by a driver who either does not have auto insurance or does not have sufficient coverage, this is where Uninsured /Underinsured Motorist insurance comes in.

Uninsured Motorist (UM) coverage protects you if you get into a collision caused by a driver who does not have any auto insurance. It pays for your emergency room visits, treatment costs, lost wages, and pain and suffering. It extends to any injured passengers in your vehicle as well. UM coverage may also apply if the other driver cannot be identified in case of a hit-and-run (assuming you report it promptly to the police).

Similarly, Underinsured Motorist (UIM) coverage applies when the at-fault driver’s insurance limits are insufficient to cover your damages fully. It fills the gap between the at-fault driver’s insurance limits and your actual damages.

Is Uninsured/Underinsured Motorist Insurance Mandatory in Colorado?

UM/UIM coverage is optional in Colorado, but policyholders are recommended to add it to their minimum liability insurance because of the notable protection it provides against hit-and-run drivers, underinsured drivers, and drivers with no insurance.

This insurance protects the “insured” driver and their passengers, not the other driver who is at fault. It also does not cover damage to the insured driver’s vehicle. UM/UIM insurance is designed for bodily injury losses (such as medical expenses, lost wages, and pain and suffering) suffered by the insured driver and passengers. For damages to the vehicle (from a crash, theft, vandalism, or natural disaster), separate collision or comprehensive coverage would be required.

UM/UIM Coverage Must be Equal to Injury Liability Limits

Under current Colorado laws, auto insurers must offer UM/UIM coverage as an additional protection to their policyholders, and the coverage amount must be equal to the bodily injury liability limits that the policyholder has chosen for their insurance policy.

For example, if you have chosen liability coverage of $50,000 per person and $100,000 per accident for injury protection, the UM/UIM coverage offered to you would also provide up to $50,000 per person and $100,000 per accident in case of accidents caused by an uninsured/underinsured driver.

If you decide not to purchase this insurance or you choose a coverage limit that is lower than your liability insurance limit, you must explicitly waive this coverage in writing. This is to ensure that your decision to decline or lower UM/UIM coverage is understood and well-documented.

Woman Looking At The Motor Of Her Car While Talking On The Phone

How to Pursue Compensation After an Uninsured Driver Causes an Accident?

If a motorist with no insurance has been determined at fault for your accident, and you are seeking recovery, you have to file a claim with your own auto insurance provider. However, this is usually not a straightforward process as insurance companies, like any business, aim to manage costs and maximize profits. Since UM/UIM coverage means paying claims without a third-party liable insurer, they scrutinize these claims more closely to avoid unnecessary payouts even to their own policyholders.

You should be prepared for your insurer to push back after you file a UM/UIM claim. That said, keep in mind:

  • Colorado laws strictly prohibit insurance providers from increasing your premium rates when you file a UM/UIM claim.
  • Never accept the initial offer made by them. Insurance adjusters will do everything in their power to settle your claim for the least amount possible – making it sound like the “best they can offer”. This includes:
  • Interpreting policy language in a narrow or restrictive manner.
  • Disputing your version of events to assign you partial or shared fault (thus reducing the payout).
  • Undervaluing the damages (medical bills, lost wages, etc.) claimed by you.
  • Challenging the severity of your injuries or the necessity of medical treatments claimed by you.
  • Delaying the processing of your claim to force you to accept the low offer without negotiating.
  • If your claim is denied, or the insurance company fails to fully compensate you for your damages, you may be entitled to pursue a bad faith claim against your insurance company.

Our Colorado Car Accident Attorneys Can Protect Your Right to Compensation

To file a UM/UIM claim in Colorado, it is not mandatory to hire a lawyer. But having a seasoned car accident lawyer on your side can encourage the insurance company to offer you the compensation you are rightfully entitled to. Claimants represented by established law firms in Colorado are taken more seriously by insurance adjusters because they know how to pursue an aggressive, evidence-based claim for damages. A resourceful car accident attorney in Colorado will also be prepared to go to trial if a fair settlement is not reached.

At Fuller Personal Injury Law, we have recovered more than $50 million in settlements and jury awards for personal injury victims across Colorado. We can help you understand how much you may be reimbursed based on your policy limits and other circumstances of your case. We offer a free, no-obligations consultation to guide you on the best course of action, even if your injury claim has already been denied. Reach us online or call us at (720) 770-3832 to schedule your free case review.