Obviously, Colorado roads can be dangerous. A careless driver can run a red light, drift across lanes, crash into a stopped car, hit a pedestrian or cause a serious motorcycle wreck in a matter of seconds.
But after a serious crash, many injured people discover a second problem. The person who caused the crash may not have enough insurance to pay for the damage they caused.
That is not rare in Colorado. It is one of the biggest financial risks on the road.
According to the Insurance Research Council, 15.4% of U.S. drivers were uninsured in 2023, and 18.0% were underinsured. Even more concerning, the IRC reported that Colorado had the highest underinsured motorist rate in the country at 49.7%. The Insurance Information Institute also lists Colorado as the ninth-highest state for uninsured motorists, at 19.7% in 2023.
For injured people, those numbers matter. A driver can be completely at fault and still have too little coverage to pay for your medical bills, lost income, and future care for the full impact of your injuries.
That is why uninsured and underinsured motorist coverage, often called UIM coverage, can be so important.
At The O’Sullivan Law Firm, we have seen too many people do everything right, only to learn after a crash that the at-fault driver had no insurance, minimal insurance or not enough insurance to cover a serious injury claim. When that happens, the question becomes urgent: Who pays for what was taken from your life?
Uninsured motorist coverage applies when the driver who caused the crash does not have valid auto insurance.
That may happen for several reasons. The driver may have let their policy lapse. They may have been driving without insurance at all. They may have been excluded from the policy. Or they may have fled the scene and never been identified.
For an injured person, the result is the same: there may be no liability insurance available from the person who caused the crash.
That is where uninsured motorist coverage may help.
If you carry UIM coverage on your own auto policy, it may step in to cover damages caused by an uninsured driver. This can include medical expenses, lost wages, pain, permanent injury and other losses tied to the crash.
UIM coverage can also matter in hit-and-run crashes. If the driver who hit you leaves the scene and cannot be found, your own uninsured motorist coverage may become one of the most important sources of recovery.
Underinsured motorist coverage applies when the at-fault driver has insurance, but not enough insurance to cover the full value of the claim.
This is one of the most common problems in serious Colorado injury cases.
A driver may carry the state minimum insurance required by law. But minimum coverage may not come close to paying for a serious injury. A hospital stay, surgery, physical therapy, missed work and long-term pain can quickly exceed the available policy limits.
For example, imagine that a driver causes a crash and carries only a small liability policy. If your medical bills, wage loss and future damages are much higher than that policy, the at-fault driver is underinsured.
In that situation, your own UIM coverage may provide additional compensation, depending on your policy and the facts of the case.
The key point is simple: the at-fault driver’s insurance is not always the end of the story.
This is why UIM coverage is not just another line item on an insurance policy. It can be the coverage that protects you and your family when someone else causes a crash and does not have enough insurance.
Many people do not fully understand their coverage until after they need it. By then, the policy is already set.
That is why we encourage Colorado drivers to review their insurance before a crash happens. Ask your insurance agent about your UIM limits. Ask whether you have MedPay. Ask what your policy would do if you were hit by someone with no insurance, too little insurance or no identifiable driver at all.
A few questions now can make a major difference later.
One of the most frustrating things about UIM cases is that your own insurance company may become the company you have to fight.
People are often surprised by this. They paid for the coverage. They held up their end of the deal. They assume their insurer will simply step in and help.
Sometimes that happens. But not always.
In a UIM claim, your insurance company may dispute the severity of your injuries, the amount of your medical bills, the need for future care, the value of your lost income or whether the crash caused all of your symptoms. They may argue that the at-fault driver was not fully responsible. They may claim that your injuries are worth less than your doctors, your lawyer or your life experience says they are.
This can feel personal, especially when the claim is against your own policy.
But it is important to remember that insurance companies are businesses. They evaluate claims through their own financial lens. Even when you are dealing with your own insurer, the company will often look for ways to limit what it pays.
That’s why we take UIM claims so seriously.
Depending on the case and the available coverage, UIM may help compensate an injured person for many of the same losses that would be part of a claim against the at-fault driver.
These may include:
The goal is not only to pay bills. The goal is to account for the full impact of the crash.
A serious injury can affect how someone works, sleeps, drives, walks, exercises, cares for family, plays with children, enjoys hobbies and plans for the future. A proper claim should look at the whole person, not just the surface-level medical expenses.
Sometimes the at-fault driver’s insurance company offers its policy limits quickly. That may sound like a complete victory.
But if your injuries are serious, it may not be enough.
Before accepting any policy-limits offer, it is important to understand whether there are other sources of recovery. There may be UIM coverage through your own policy. There may be another household policy. There may be MedPay. There may be additional coverage if another party contributed to the crash. In some cases, there may be a commercial policy, employer liability or other responsible parties.
Once a release is signed, it may be difficult or impossible to go back and fix mistakes.
This is one of the reasons injured people should talk to a lawyer before settling a serious crash claim. A quick offer may not mean the insurance company is being generous. It may mean they know the claim is worth far more than the available limits.
If you were hit by a driver who has no insurance or not enough insurance, there are several steps you should take.
First, get medical care. Your health comes first, and your medical records will also help document the injury. Even if you feel “fine,” get checked out.
Second, report the crash to law enforcement. A police report can be especially important in uninsured, underinsured and hit-and-run cases.
Third, notify your insurance company, but be careful with recorded statements. Your insurer may be your source of UIM coverage, but that does not mean every conversation is harmless.
Fourth, gather as much information as possible. Get photos of the scene, vehicle damage, license plates, insurance cards, road conditions, injuries and anything else that may matter. If there are witnesses, get their names and contact information.
Fifth, do not assume the other driver’s policy is the only available source of recovery. Serious cases deserve a full insurance investigation.
Finally, talk to a personal injury lawyer before accepting any settlement.
At The O’Sullivan Law Firm, we know that a crash claim is not only about proving who was at fault. It is also about finding the coverage needed to actually protect the injured person’s future.
That means looking carefully at the at-fault driver’s policy, your own UIM coverage, MedPay, household policies, employer policies, commercial coverage, umbrella coverage and any other source that may apply.
We intentionally keep our case count low so we can give every client the attention their case deserves. That matters in UIM cases because these claims can be technical, frustrating and easy to undervalue.
“No injured person should be left financially exposed because the driver who hurt them failed to carry enough insurance. There are ways to protect yourself, but they are not always obvious until you know about it.” – Scott
If you are reading this before a crash happens, take this as a reminder to review your auto insurance policy.
Ask your insurance agent:
These are not questions anyone wants to ask after a serious injury. They are questions worth asking now.
Colorado has a serious insurance gap on its hands. Unfortunately, injured people often discover it only after the damage has already been done.
If you were hit by an uninsured or underinsured driver, do not assume there is nothing you can do. There may be coverage available, but it often takes a careful investigation to find it and a strong legal strategy to recover it.
Call or text us at 303-388-5304 to talk to a Colorado personal injury lawyer for free.
