Nearly Half of Colorado Drivers May Leave You Undercompensated After an Accident
If you’re shopping for car insurance in Colorado or have been in an accident with an uninsured driver, you need to know this: Colorado insurers must offer you uninsured and underinsured motorist (UM/UIM) coverage equal to your liability limits, unless you explicitly reject it in writing. With Colorado ranking 9th highest in the nation for uninsured drivers at 19.7% according to 2023 data, and Colorado experiencing the largest increase in underinsured motorist rates (a 24.4 percentage point increase), understanding your coverage options is essential protection.
When accidents happen, victims often discover too late that the at-fault driver can’t cover their medical bills, lost wages, or damages. Colorado law provides safeguards, requiring insurers to actively offer this protection.
💡 Pro Tip: Review your current auto policy today. If you don’t see UM/UIM coverage or if it’s lower than your liability limits, contact your insurer immediately to add or increase this protection.
Seize the moment to safeguard your future with the right insurance coverage. At Jarret J. Benson Law, we’re here to help you navigate these complex decisions. Whether you need advice or assistance, don’t hesitate to contact us or call (720) 710-6753 today.
Colorado Law Mandates Insurers Offer UM/UIM Coverage at Your Liability Limits
Under Colorado law, every auto insurer must provide uninsured/underinsured motorist coverage in amounts equal to your bodily injury liability coverage, unless you specifically waive this protection in writing. If you carry the state minimum of $25,000 per person and $50,000 per accident in liability coverage, your insurer must offer you the same limits for UM/UIM protection.
While UM/UIM coverage remains optional in Colorado, insurers cannot bury it in fine print. They must present it clearly and obtain your written rejection if you decline. This protection covers situations where the at-fault driver’s insurance falls short of covering your damages, which happens frequently since medical costs and lost wages from serious accidents often exceed minimum coverage limits. It also covers hit-and-run drivers and those driving without insurance, but doesn’t cover vehicle damage—that requires collision coverage.
💡 Pro Tip: Never sign a waiver rejecting UM/UIM coverage without fully understanding the risks. Given Colorado’s high rates of uninsured drivers and its large increase in underinsured rates, this coverage could be the only thing standing between you and financial disaster after an accident.
The Process: How Colorado Insurers Must Present UM/UIM Options
When you purchase or renew auto insurance in Colorado, insurers follow a specific process mandated by state law. They must clearly present UM/UIM coverage options at limits matching your bodily injury liability coverage.
- Initial Quote Phase: Insurers must include UM/UIM coverage equal to your liability limits unless previously rejected
- Written Disclosure: Clear written explanation of UM/UIM coverage and benefits
- Coverage Selection: Accept offered coverage, choose lower limits, or reject entirely—any rejection must be in writing
- Documentation Requirements: Insurers must maintain signed waivers for rejected coverage
- Renewal Process: Each renewal, insurers must again offer UM/UIM coverage if previously rejected
Uninsured motorist rates jumped from 12.4% in 2017 to 15.4% in 2023 nationally, with sharp increases during and after the pandemic. Colorado’s situation is even more concerning, making understanding your coverage options with the help of a car accident lawyer in Denver particularly valuable.
💡 Pro Tip: Review your UM/UIM coverage annually. As your assets grow and medical costs rise, minimum coverage that seemed adequate years ago may no longer provide sufficient protection.
Protecting Your Rights After an Accident with an Uninsured Driver
When you’re hit by an uninsured or underinsured driver, having proper UM/UIM coverage becomes your financial lifeline. Report the accident to your insurance company immediately, as delays can complicate your claim. Unlike standard collision claims, UM/UIM claims require you to work with your own insurer, making the process feel adversarial. This is where experienced legal guidance from firms like Jarret J. Benson Law becomes invaluable.
Your insurer essentially steps into the shoes of the uninsured driver, which means they may scrutinize your claim carefully. Documentation is critical—police reports confirming the other driver’s insurance status, medical records detailing your injuries, and evidence of lost wages all play vital roles. A car accident lawyer in Denver can help ensure you’re presenting the strongest possible case to maximize your recovery.
💡 Pro Tip: Document everything from day one after an accident. Take photos, get witness information, and keep detailed records of all medical treatments and missed work. Your own insurance company will require this evidence for a UM/UIM claim.
Understanding the Real Cost of Being Unprotected in Colorado
The financial impact of encountering an uninsured or underinsured driver extends far beyond immediate medical bills. With Colorado’s minimum liability limits set at $25,000 per person for bodily injury, serious accidents quickly exceed these amounts. A single emergency room visit can cost $10,000 or more, and extended hospital stays for serious injuries routinely reach six figures. Without adequate UM/UIM coverage, accident victims often face impossible choices between necessary medical treatment and avoiding bankruptcy.
The Hidden Expenses of Serious Accidents
Beyond immediate medical costs, accident victims face lost wages, ongoing rehabilitation, and potential long-term disability accommodations. Colorado experienced the largest increase in underinsured motorist rates (a 24.4 percentage point increase), which underscores the risk that drivers may be inadequately covered. Many clients consulting with a car accident lawyer in Denver discover their expenses exceed both their coverage and the at-fault driver’s policy limits combined.
💡 Pro Tip: Calculate your actual financial exposure by adding up three months of lost income, your health insurance deductible and out-of-pocket maximum, plus potential rehabilitation costs. This exercise often reveals that state minimum UM/UIM coverage falls dangerously short.
Making Smart Coverage Decisions in Today’s Insurance Climate
Rising uninsured motorist rates since 2020 reflect broader economic pressures affecting drivers’ insurance decisions. Rising premiums, inflation, and economic uncertainty lead more drivers to drop coverage or maintain only state minimums. This trend makes reviewing your own UM/UIM coverage more critical than ever, particularly in Colorado where rates significantly exceed national averages.
Evaluating Your Coverage Needs
Determining appropriate UM/UIM coverage levels requires honest assessment of your financial situation and risk tolerance. Consider your health insurance deductibles, income replacement needs if injured, and assets requiring protection. Working with a car accident lawyer in Denver after an accident often reveals coverage gaps that seemed insignificant during policy purchase.
💡 Pro Tip: Consider purchasing UM/UIM coverage at limits higher than your liability coverage if your insurer allows it. This provides extra protection without requiring you to increase liability limits that might not benefit you directly.
Navigating Colorado’s Unique Insurance Landscape
Colorado’s position as experiencing the largest increase in underinsured motorist rates creates unique challenges. While twenty-two states require uninsured/underinsured motorist coverage, Colorado maintains it as optional, relying on the requirement that insurers must offer it. The combination of high-risk statistics and optional coverage creates a situation where prepared drivers must be proactive about protection.
💡 Pro Tip: Ask your insurer about "stacking" UM/UIM coverage if you have multiple vehicles. Some policies allow you to combine coverage limits across vehicles, potentially doubling or tripling your protection.
Frequently Asked Questions
Common Concerns About UM/UIM Coverage in Colorado
These frequently asked questions address the most common concerns Colorado drivers have about uninsured and underinsured motorist coverage.
💡 Pro Tip: Save your insurance company’s written UM/UIM coverage offer and any waivers you sign. These documents become crucial evidence if coverage disputes arise after an accident.
1. What happens if I already waived UM/UIM coverage but want to add it now?
You can add UM/UIM coverage at any time by contacting your insurance company. Colorado law requires insurers to offer this coverage at each renewal period, even if you previously rejected it. Simply call your insurer to add the coverage and your premium will increase accordingly.
2. Does UM/UIM coverage protect me if I’m hit as a pedestrian or bicyclist?
Yes, UM/UIM coverage typically extends beyond car-to-car accidents. Most policies cover you if you’re struck by an uninsured driver while walking, cycling, or as a passenger in someone else’s vehicle.
3. How do I prove the other driver was uninsured after an accident?
Start by obtaining a police report, which should document the other driver’s insurance status. Your insurance company will also investigate by attempting to verify coverage. For hit-and-run drivers, the police report becomes your primary evidence.
4. What’s the difference between collision coverage and UM/UIM coverage?
Collision coverage pays for damage to your vehicle regardless of fault, while UM/UIM coverage only pays for your bodily injury losses when the at-fault driver lacks adequate insurance. UM/UIM doesn’t cover vehicle damage—you’d need collision coverage for that.
5. Should my UM/UIM coverage limits match my liability coverage in Colorado?
While Colorado insurers must offer UM/UIM coverage equal to your liability limits, you can choose lower or higher amounts if available. Given Colorado’s significant increase in underinsured rates, many experts recommend carrying the highest UM/UIM limits you can afford.
Work with a Trusted Car Accidents Lawyer
Understanding insurance coverage requirements is just the first step in protecting yourself after an accident. When facing medical bills, lost wages, and insurance companies that may resist paying claims, having experienced legal representation makes a significant difference. The team at Jarret J. Benson Law brings extensive experience handling these challenging cases, working to ensure clients receive the full compensation their policies provide.
Secure your future and avoid financial pitfalls with the right insurance choices. At Jarret J. Benson Law, we’re dedicated to guiding you through these critical decisions. Reach out to us via contact us or give us a call at (720) 710-6753 today.