Underinsured & Uninsured Motorist (UM/UIM) Claims in Colorado
Colorado requires every auto insurer to offer this coverage. Most drivers have it and don't know it, and most are surprised at how hard their own insurer fights it.
Schedule a Free ConsultationWhat a UM/UIM Claim Actually Is
Uninsured motorist (UM) coverage applies when the at-fault driver has no insurance at all, or can't be identified, as in a hit-and-run. Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance, but their policy limits fall short of what your injuries actually cost.
Under Colorado law, every auto insurance policy issued in the state must include an offer of this coverage, in an amount tied to your liability limits, unless you rejected it in writing.
C.R.S. § 10-4-609 requires insurers to offer UM/UIM coverage before a policy is issued or renewed, and allows the named insured to reject it only in writing.
In practice, this means most Colorado drivers carry this coverage whether or not they remember choosing it. If you were hurt by a driver with no insurance, or not enough of it, there's a real chance you have a claim against your own policy that has nothing to do with fault on your part.
Why Your Own Insurance Company Isn't Automatically On Your Side
A UM/UIM claim is still an adversarial claim, even though you're filing it against your own policy. The adjuster handling it works for the company paying the claim, and that company has the same financial incentive to minimize your payout that the at-fault driver's insurer would have.
I spent roughly two years defending these exact claims for insurance companies before I started representing injured people. I know how UM/UIM claims get evaluated internally, what evidence adjusters weigh, and where they typically look to reduce a payout. That's the perspective I bring to a UM/UIM claim now, from the other side of the table.
Deadlines Are Not as Simple as "Three Years"
Colorado sets a baseline of three years from when a UM/UIM cause of action accrues to bring a claim or demand arbitration, but the actual deadline in your case can shift depending on whether you also pursued a claim against the at-fault driver, and how that claim was resolved.
C.R.S. § 13-80-107.5 sets the timing rules for UM/UIM actions and arbitrations in Colorado, including circumstances that can extend the deadline beyond three years.
Your policy may also impose its own notice requirements that are shorter than the statutory deadline. Missing one of those can hand the insurer a defense that has nothing to do with the merits of your claim. If you're not certain where you stand, that's worth confirming early, not after you've already dealt directly with the adjuster.
Common Questions
Do I have to accept my insurance company's offer on a UM/UIM claim?
No. An initial offer is a starting point for negotiation, not a final determination of what your claim is worth. You're entitled to dispute it, and to pursue arbitration or a lawsuit against your own insurer if a fair resolution isn't reached.
Can I really sue my own insurance company?
Yes. A UM/UIM claim is a contract claim against your own insurer, separate from any claim against the at-fault driver. If your insurer unreasonably delays or denies a valid claim, Colorado law also allows a separate statutory claim against the insurer for that conduct.
Does the at-fault driver's insurance have to pay before my UIM claim moves forward?
Often, yes, you typically pursue the at-fault driver's liability coverage first and then bring a UIM claim for the gap between that payout and your actual damages, but the timing and required consents depend on your specific policy and claim.
What if I don't remember ever choosing UM/UIM coverage?
That's normal. Because Colorado law requires insurers to include this coverage unless you rejected it in writing, most drivers have it without having made an active decision to add it. Your declarations page will show whether you carry it and at what limit.
How is a UM/UIM claim different from a bad faith claim?
A UM/UIM claim is about what your policy owes you for your injuries. A bad faith claim is about how your insurer handled that claim, whether it unreasonably delayed or denied a payment it owed. The two can exist side by side if your insurer both underpays a valid UM/UIM claim and does so without a reasonable basis.
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I handle every UM/UIM claim personally, from the first conversation to resolution. Free video consultation, no case managers, no call center.
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