Colorado Uninsured or Underinsured Motorist Laws

A car accident claim in Colorado always has the potential to be challenging, but if you discover that the other driver involved in your case does not have adequate automobile insurance, it can be even more difficult to achieve the results you need.

Understanding Colorado’s uninsured or underinsured motorist laws can help you protect your rights in this tricky situation. A Fort Collins car accident attorney can provide the guidance you need, especially since motorcyclists are often at greater risk of severe injuries and financial loss. 

What Car Insurance Is Required for Colorado Drivers?

Car insurance is mandatory for all motor vehicle operators in Colorado. Automobile insurance guarantees that a driver can afford to pay for the damage inflicted by an at-fault accident. Driving without insurance is against the law in Colorado and can result in a fine and driver’s license suspension.

 The minimum required amounts of insurance for drivers in Colorado are:

• Bodily injury liability insurance for one person in an accident: $25,000
• Bodily injury liability insurance for two or more persons in an accident: $50,000
• Property damage liability insurance per accident: $15,000

 Liability coverage pays for the losses of someone else (not the at-fault driver) after an automobile accident. Unfortunately, many drivers illegally choose to drive without at least the minimum required amounts of auto coverage – or any car insurance at all. This can lead to a complicated claims process.

Who Pays for an Uninsured or Underinsured Motorist Accident?

In a typical Colorado car accident case, the driver or party at fault for causing the collision is held responsible, or liable, for paying for the victim’s medical bills and property repairs.

If the driver at fault for violating a traffic law, driving while distracted or drunk, or behaving carelessly or recklessly does not have insurance, the injured victim may be able to seek coverage from his or her own insurance provider instead.

First-party car insurance coverage can pay for a victim’s losses after a crash in Colorado that is caused by a driver who does not have proper insurance. This type of coverage is known as uninsured and underinsured motorist (UM/UIM) insurance.

Uninsured motorist or UM insurance can pay for a crash victim’s losses up to the limits on the policy if the at-fault driver does not have any automobile insurance. It can also pay for a hit-and-run crash. 

Underinsured motorist or UIM insurance can cover the gap between what an underinsured driver has on his or her policy and the full extent of the victim’s damages. The victim’s own insurance company can provide supplemental payment in the form of UIM insurance to cover remaining damages after a claim has already been fulfilled up to the at-fault driver’s available coverage.

Is Uninsured or Underinsured Motorist Insurance Mandatory in Colorado?

No, uninsured and underinsured motorist insurance is not mandatory for motor vehicle drivers in Colorado. However, it is mandatory for car insurance companies to offer UM/UIM coverage to new clients when they purchase automobile insurance plans. This coverage must be rejected in writing by the policyholder.

How a Car Accident Lawyer Can Help With an Uninsured or Underinsured Motorist Claim in Colorado  

It can be difficult to recover fair financial compensation for your medical bills, property repairs and various other losses if the other driver involved in your crash does not have proper automobile insurance. You may need to hire an attorney to ensure fair case results. 

An experienced car accident lawyer can help you protect your rights, seek maximum compensation from all available outlets, and maximize the value of your claim using legal strategies and services. To discuss a particular claim with an attorney at no cost, contact us at Cannon Law today.