Colorado Uninsured & Underinsured Motorist Laws
Colorado Uninsured Motorist law information for victims in Denver, Ft. Collins and CO Springs, Colorado.
When you’re in an accident, the party who is responsible for the accident should pay for your damages. All drivers in Colorado are required by law to have minimum amounts of insurance. But what happens when the driver at fault doesn’t have the required insurance? Will you be able to recover the compensation you need to recover fully? Do you need to work with a car accident lawyer? Here’s some frequently asked questions and what you need to know about uninsured motorist coverage in Colorado.
- What is Uninsured (UM) or Under-Insured (UIM) Insurance?
- What Is Liability Insurance?
- How Does Uninsured Motorist Coverage Work in Colorado?
- What If the Person at Fault in My Car Accident Doesn’t Have Enough Insurance to Pay All of My Bills and Expenses?
- Who Will Pay for My Car and Medical Bills After a Hit and Run Accident?
- Why Is Uninsured Motorist Coverage Necessary?
- Is It Mandatory for Colorado Motorists to Carry Uninsured Motorist on Insurance?
- What Happens If You Get Caught Driving Without Insurance in Colorado?
- What Is “Setoff”?
- What Is “Anti-Stacking”?
- Can “Set-Off” And “Anti-Stacking” Be Used Together?
- Do I Need a Lawyer to Make a Claim for Uninsured Motorist Coverage?
- What Happens If I’m Injured in a Denver Uninsured Car Accident?
What is Uninsured (UM) or Under-Insured (UIM) Insurance?
Uninsured motorist coverage gives you the confidence to know that you’re going to have your expenses paid even if the other driver doesn’t have mandatory car insurance.
The State of Colorado requires the following minimum coverages:
- $25,000 for bodily injury or death to any one person in an accident;
- $50,000 for bodily injury or death to all persons in any one accident; and
- $15,000 for property damage in any one accident.
Learn more about Colorado’s mandatory automobile insurance here.
What Is Liability Insurance?
How Does Uninsured Motorist Coverage Work in Colorado?
The insurance also works if the other driver is underinsured. For example, You’re in an accident, and you have $75,000 in damages. The other driver has an insurance policy with a maximum limit of $50,000. Their insurance pays you the full $50,000 policy amount. You look to your uninsured/underinsured motorist coverage to collect the remaining $25,000 in damages. Your damages are covered in full.
What If the Person at Fault in My Car Accident Doesn’t Have Enough Insurance to Pay All of My Bills and Expenses?
Who Will Pay for My Car and Medical Bills After a Hit and Run Accident?
Why Is Uninsured Motorist Coverage Necessary?
Is It Mandatory for Colorado Motorists to Carry Uninsured Motorist on Insurance?
However, it’s up to the driver to decide if they want uninsured motorist coverage or not. It’s always a good idea to have uninsured motorist insurance. Without it, there’s no payment for your losses if the party responsible for the accident doesn’t have the required insurance coverage.
What Happens If You Get Caught Driving Without Insurance in Colorado?
Current Law Works to Protect Colorado Drivers
Colorado Revised Statute 10-4-609 closed previous loopholes in the law that prevented consumers from receiving the full benefits they thought they were buying when purchasing UM/UIM coverage in Colorado. All current Uninsured and/or Underinsured (UM/UIM) automobile insurance policy reflects these rules.
What Is “Setoff”?
Example: Kendra was driving home from work and was hit by Josh after a night out drinking with his buddies. His blood alcohol level was above the legal limit and he was cited for driving under the influence. Kendra was severely injured and spent many months in the hospital and in rehab. She was unable to work during her recovery time and her medical expenses and lost wages totaled $250,000. Josh had insurance but his bodily injury liability policy limit was only $50,000. Kendra had purchased $200,000 in UM/UIM safety net coverage on her own policy.
Conclusion: Josh’s insurance company paid Kendra the $50,000 per Josh’s policy limits. Kendra’s insurance company was legally obligated to pay her the total of her UM/UIM policy limits of $200,000. Her total compensation was $250,000 which covered all of her medical expenses and lost wages.
What Is “Anti-Stacking”?
Example: Andrew and Samantha were both driving on the interstate when Samantha rear-ended Andrew’s car because she was distracted while talking on her cell phone. Samantha was uninsured. As a result of the Denver uninsured Car Accident, Andrew had medical expenses and lost wages totaling $250,000. In addition to his liability coverage, Andrew had purchased and paid premiums on three separate $100,000 UM/UIM policies for each of his three cars for a total of $300,000.
Conclusion: Andrew was able to combine or “stack” his three policies for a total of $300,000 which was more than enough to cover his $250,000 in medical expenses and lost wages.
Many Colorado insurance companies continued to sell multiple policies of UM coverage in a single household and continued to use and enforce “anti-stacking” provisions even after the Colorado Supreme Court ruled this essentially unnecessary in DeHerrera v. Sentry Insurance Company, 30 P.3d 167 (Colo. 2001).
In DeHerrera, the Supreme Court held that Sentry Insurance was incorrect in its reading of Colorado Revised Statutes 10-4-609. The Supreme Court instructed Sentry Insurance (and by implication all of the other insurance companies writing policies in Colorado) that UM/UIM benefits follow the person and not the vehicle. Additionally, the Court stated that one premium is sufficient to cover an entire family of drivers compared to one premium per car.
Can “Set-Off” And “Anti-Stacking” Be Used Together?
Example: Tony ran a red light and hit Connie, causing $250,000 in medical expenses and lost wages. Tony’s liability coverage was $50,000. Connie carried $100,000 in UM insurance and additional $100,000 UM coverage on her second car.
Conclusion: Tony’s insurance company paid Connie his policy limits of $50,000. Connie’s insurance company was not allowed to “setoff” this $50,000 and because Connie’s injuries were so severe, her insurance company paid the additional $100,000 in policy limits under the first UM policy paid to Connie. In addition, her insurance company is prohibited from using “anti-stacking” language in her policy and must pay her the additional $100,000 UM/UIM coverage from her second car. Connie’s total compensation is $250,000.
Do I Need a Lawyer to Make a Claim for Uninsured Motorist Coverage?
When you work with an experienced attorney, they handle the discussions with the insurance company. They know how to manage critical negotiations tactfully. With an attorney, you have a trained advocate who ensures that you reach the best possible result in your case.
What Happens If I’m Injured in a Denver Uninsured Car Accident?
This coverage “steps into the shoes” of the at-fault driver and pays you the same kind of damages you could have recovered from the at-fault driver’s insurance had the driver been insured. Uninsured motorist insurance coverage may be available to pay your claim if any resident in your household owns a car that has Uninsured Motorist coverage regardless of whether you were occupying the car at the time of the accident. In fact, your uninsured motorist coverage will even cover you if you are a pedestrian hit by an uninsured driver.
UM Law Applicable to All Current Auto Insurance Policies
- An insurance company may not set-off the amount of compensation from the at-faults bodily injury liability insurance coverage to reduce UM coverage available.
- An insurance company may not write into an insurance policy “anti-stacking” language. In this regard, your insurance agent will likely tell you that you will be able to save some money by dropping the additional premiums you have for each vehicle. Although you will save money, you will limit your coverage and limit your insurance company’s liability in the total amount of UM/UIM coverage they must pay if you are involved in an accident. In doing so, you will limit your safety net.
Colorado Revised Statutes 10-4-609(c)
“The coverage described in paragraph (a) of this subsection (1) shall be in addition to any legal liability coverage and shall cover the difference, if any, between the amount of the limits of any legal liability coverage and the amount of the damages sustained, excluding exemplary damages, up to the maximum amount of the coverage obtained pursuant to this section. A single policy or endorsement for uninsured or underinsured motor vehicle coverage issued for a single premium covering multiple vehicles may be limited to applying once per accident. The amount of the coverage available pursuant to this section shall not be reduced by setoff from any other coverage, including, but not limited to, legal liability insurance, medical payments coverage, health insurance, or other uninsured or underinsured motor vehicle insurance.”
Contact Our Denver Car Accident Lawyers
If you’ve been in an accident, contact our skilled Denver car accident lawyers for a free consultation about your claim. You may deserve compensation. Our aggressive attorneys can pursue your uninsured motorist claim with a strong, calculated legal strategy. An uninsured motorist claim is complex, but the team at Bachus & Schanker, LLC has helped thousands of clients just like you.
When you’re the victim of an uninsured or underinsured motorist, you’re not alone. Our attorneys fight on behalf of accident victims every day. Your call is free and confidential.
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