Uninsured and Underinsured Motorist Coverage in Colorado

Uninsured and underinsured motorist coverage in Colorado is one of the most important types of automobile insurance available to drivers in the state. If you’re involved in a car accident with an uninsured driver, this coverage may be your only form of compensation. Despite Colorado’s requirement that all drivers maintain automobile insurance, many individuals either have no insurance or do not carry enough coverage to pay for the damages they cause.

At Bowman Law, our team of Denver car accident lawyers can help you pursue compensation after being injured in an accident caused by an uninsured or underinsured driver. We will thoroughly evaluate your claim to determine all potential sources of compensation, including UM/UIM coverage in Colorado.

What is Underinsured Motorist Coverage?

Underinsured motorist (UIM) protection refers to the coverage provided by your insurance policy when you are involved in an accident with a driver who has inadequate insurance coverage. If the at-fault driver’s liability coverage is insufficient to cover your damages, UIM coverage steps in to bridge the gap and provide additional compensation.

What is Uninsured Motorist Protection?

Uninsured motorist (UM) protection, on the other hand, offers coverage when you are involved in an accident with a driver who doesn’t have any insurance. UM coverage ensures that you are still protected and can receive compensation for your injuries and damages, even if the at-fault driver lacks liability coverage.

When you purchase underinsured motorist coverage, you are also purchasing uninsured motorist coverage. You will oftentimes see this coverage on your Declaration’s page abbreviated “UM/UIM.” The underinsured motorist coverage and uninsured motorist coverage limits will also be in the same amount. 

How Does UM/UIM Coverage Work in Colorado?

UM/UIM coverage provides compensation from your own policy when the at-fault driver has no or insufficient insurance.

In Colorado, this coverage helps pay for medical expenses, lost wages, pain and suffering, and other damages caused by the at-fault driver’s lack of adequate insurance. UM coverage applies when the at-fault driver has no insurance at all. UIM coverage can be used once you have exhausted the liable driver’s policy limits.

How Much Does UM/UIM Coverage Cost in Colorado?

The cost of UM/UIM coverage in Colorado varies depending on several factors, such as your insurance provider, the limits you choose, your driving record, and the type of vehicle you own. On average, adding UM/UIM coverage to your policy may increase your premium by a reasonable amount, but the additional protection can be well worth the cost and provides crucial protection against uninsured and underinsured drivers.

Does UM/UIM Coverage Include Property Damage?

No, UM/UIM coverage in Colorado does not include property damage—it only covers bodily injury.

For property damage, either the at-fault driver’s liability coverage or your own collision insurance will typically apply.

Will an UM/UIM Claim Raise My Rates in Colorado?

Filing a UM/UIM claim typically does not lead to a direct increase in your insurance rates in Colorado. These claims are generally considered “not-at-fault” and should not result in a penalty. However, it’s essential to review your specific policy and consult with your insurance provider to understand the potential impact on your rates.

How Much UM/UIM Coverage Should I Purchase in Colorado?

The minimum required amount of UM/UIM coverage in Colorado is $25,000 per person and $50,000 per incident.

Determining how much coverage to carry beyond that depends on your financial situation, your risk tolerance, and your desire for peace of mind. A personal injury attorney can help you assess your risks and determine an appropriate level of coverage based on potential medical bills, long-term rehabilitation, and lost income.

Am I Required to Carry UM/UIM Coverage in Colorado?

Colorado law requires insurers to offer UM/UIM coverage in the same amounts as your liability coverage.

You are not required to accept it—but if you choose to decline or “step down” to a lower amount, you must do so in writing. Before rejecting or reducing this coverage, it’s crucial to understand the risks involved and how it may affect your ability to recover damages after a serious accident.

What’s the Difference Between Uninsured and Underinsured Motorist Coverage?

Uninsured motorist coverage applies when the at-fault driver has no insurance.
Underinsured motorist coverage applies when the at-fault driver has insurance, but it’s not enough to cover your full damages.

Both forms of UM/UIM coverage are designed to protect you—not the other driver—after a crash.

Should I Get Uninsured Motorist Coverage in Colorado?

Yes. You should strongly consider keeping UM/UIM coverage on your policy.

While you can legally reject it, doing so may leave you vulnerable in the event of a serious accident with an uninsured or underinsured driver. The added cost is usually small compared to the financial protection it offers.

Contact a Colorado Personal Injury Lawyer 

Underinsured and uninsured motorist coverage in Colorado provides essential protection for individuals involved in accidents with drivers who have inadequate or no insurance coverage. It is crucial to educate yourself about the importance of these coverages. 

At Bowman Law firm we’re dedicated to helping injured individuals throughout Colorado recover the compensation they deserve after sustaining damages from an accident caused by someone’s negligence. If you or your loved one were in a car accident and have suffered impacts to your health, livelihood, and financial wellbeing, you deserve to be compensated and have your best interest protected against insurance companies’ tactics to offer less than you deserve. Contact the car crash lawyers at Bowman Law to help you recover the compensation owed to you. 

We serve Denver, Boulder, Colorado Springs, and Fort Collins and the surrounding areas.