Understanding Uninsured and Underinsured Motorist Coverage in Colorado

A car accident is stressful enough; the last thing you need is to find out the driver who hit you has little or no car insurance. Now you have the added burden of wondering how you will pay for your medical bill, cover your lost income while you’re out of work to recover, and repair your banged-up vehicle. Fortunately, a specific type of protection is designed for this exact scenario. Having the right information about uninsured and underinsured motorist coverage in Colorado can make a significant difference in your ability to recover and move forward.

Key Takeaways for Uninsured and Underinsured Motorist Coverage in Colorado

• Uninsured Motorist (UM) coverage provides protection when an at-fault driver has no liability insurance.
• Underinsured Motorist (UIM) coverage applies when an at-fault driver has insurance, but their policy limits are too low to cover all the damages.
• Colorado law requires insurance companies to offer UM/UIM coverage, which drivers can accept or reject in writing.
• This coverage can help pay for medical expenses, lost income, and non-economic damages like pain and suffering.
• UM/UIM coverage can also apply in hit-and-run situations or if a person is injured as a pedestrian or cyclist by an uninsured driver.

Why UM/UIM Coverage is So Important in Colorado

Driving in Colorado, whether you’re commuting on US-36 between Boulder and Denver or navigating mountain roads, comes with risks. Unfortunately, one of those risks is encountering a driver without adequate insurance. According to a recent study by the Insurance Research Council, Colorado has one of the higher rates of uninsured drivers in the country, with an estimated 19.7% of motorists on the road without coverage. When an accident happens with one of these drivers, the consequences can be financially devastating for the injured person. Medical care is expensive, and a serious injury can lead to tens or even hundreds of thousands of dollars in bills. Without UM/UIM coverage, you could be left to pay these costs out of your own pocket. This coverage is not just an add-on; it is a fundamental layer of protection for you and your family.

The Colorado Law on UM/UIM Coverage

Colorado lawmakers recognize how important this protection is. Under the Colorado Revised Statutes 10-4-609, insurance companies are required to offer you UM/UIM coverage in an amount equal to the bodily injury liability limits of your policy. You have the right to reject this coverage, but you must do so in writing. If you do not formally reject it, it is automatically included in your policy. Given the high number of uninsured drivers on our roads, carefully considering the benefits of this coverage before making a decision is a wise step.

How a UM/UIM Claim Works

If you find yourself in a situation where you need to use your uninsured or underinsured motorist coverage, the process can feel complicated. After you are safely home from the auto accident scene and have attended to your immediate medical needs, the focus shifts to recovery and dealing with insurance. The process generally involves working with your own insurance company. Here are the typical steps involved:

• Notify Your Insurer: You must promptly inform your insurance company about the accident and the fact that the other driver is uninsured or underinsured.
• Document Everything: Keep detailed records of all your expenses and losses. This includes medical bills, therapy costs, prescription receipts, and proof of any income you lost because you couldn’t work.
• Cooperate with the Investigation: Your insurance company will conduct an investigation to confirm the other driver’s fault and their insurance status.
• Submit Your Claim: You will submit a claim to your own insurance provider for your damages, just as you would have submitted it to the at-fault driver’s company.

It is important to remember that even though you are dealing with your own insurer, their goals may not perfectly align with yours. This can sometimes lead to challenges.

Uninsured and Underinsured Motorist Coverage in Colorado FAQs

Does my UM/UIM coverage apply if I was injured in a hit-and-run accident?

Yes, in most cases. If the at-fault driver flees the scene and cannot be identified, they are treated as an uninsured motorist. Your UM coverage should apply to your injuries in this situation, provided you meet your policy’s requirements, such as reporting the accident to the police.

What if I was hit by an uninsured driver while walking or cycling in Boulder?

Your personal auto insurance policy’s UM/UIM coverage typically follows you, not just your car. If you are injured as a pedestrian or a cyclist by a negligent, uninsured driver, you can often file a claim under your own UM policy to cover your damages.

How much UM/UIM coverage should I carry?

While this is a personal financial decision, a good rule of thumb is to carry UM/UIM limits that are at least equal to your own bodily injury liability limits. Consider your health insurance, potential for lost income, and overall financial stability when deciding on an amount that gives you adequate protection.

Our Trusted Car Accident Lawyers Are Here to Help

Being in a car accident is difficult enough without the added stress of an uninsured driver and a complicated insurance claim. You deserve to focus on your health and your family. If you have been seriously injured by a negligent driver and are facing challenges with an uninsured or underinsured motorist claim, you do not have to handle it alone. At Sloat, Nicholson & Hoover, P.C., our personal injury attorneys have over 100 years of combined experience helping people in Boulder and across Colorado. We are committed to holding insurance companies accountable and fighting for the compensation our clients rightfully deserve. We take the time to listen to your story and build a strategy tailored to your unique situation. For a free, no-obligation consultation to discuss your case, please contact us today at 303-447-1144 or through our online form.