How Does Uninsured/Underinsured Insurance Work?

Colorado is an at-fault state for car insurance – the driver responsible for causing the accident is responsible for paying the damages they caused to the other driver and/or passengers. All drivers in Colorado are supposed to maintain liability insurance to pay for these losses. But what happens if the at-fault driver doesn’t have insurance?

According to the Insurance Information Institute, approximately 17.5 percent of Colorado drivers do not have insurance. In cases involving drivers who have no insurance or insufficient insurance, uninsured or underinsured motorist coverage may apply. An experienced car accident lawyer in Denver can review your claim and determine your legal options.

How Does Uninsured Underinsured Insurance Work

State Mandated Insurance

Colorado law requires all motorists in the state to maintain liability insurance in the following minimum amounts:

  • $25,000 for bodily injury or death to one person
  • $50,000 for bodily injury or death per accident
  • $15,000 for property damage per accident

This is liability coverage, so it pays for the other driver’s or passenger’s damages.

Driving without insurance is a crime in Colorado. If caught, a driver without insurance can be sentenced to up to one year in jail, have their driver’s license, registration, and license plate suspended for up to eight months, fined up to $1,000, and ordered to perform up to 40 hours of community service. Uninsured drivers found at fault for an auto accident can face additional criminal and civil penalties.

Overview of Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage (UM) pays for your damages when a driver with no insurance is at fault for the accident. UM coverage also applies in cases involving hit-and-run drivers. Underinsured motorist coverage (UIM) pays for damages that exceed the amount of your damages when the driver’s liability insurance is insufficient, up to policy limits.

Uninsured and underinsured insurance are optional coverages in Colorado. They take the place of the insurance the other driver should have had. When a driver has UM/UIM coverage, it must be in an amount equal to the policyholder’s bodily injury liability coverage. Everyone has UM/UIM insurance in Colorado unless they expressly waive it in writing, in which case the driver may choose to have no UM/UIM coverage or a lower amount of coverage.

Filing an Uninsured Motorist Claim

UM/UIM coverage is under your own policy, so you claim your benefits by filing a claim with your auto insurance company. Your insurance company assigns an adjuster to your claim. The adjuster may send you specific forms you need to pursue your claim.

Even though you are dealing with your own insurance company, you may still need the assistance of an experienced car accident lawyer. Insurance companies are highly profitable businesses that maintain their wealth by paying less in claims than they receive in premium payments. The insurance adjuster may try to deny or minimize your claim, and an attorney can fight for the financial compensation you are owed under the terms of your insurance policy.

Contact Us for a Free Consultation

If you were injured in an accident involving an uninsured or underinsured motorist, an experienced car accident lawyer from Dulin McQuinn Young can help. We can investigate your case, identify all applicable insurance, and pursue all paths for recovery. Contact us at (303) 246-1111 for a free case review.

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