You’re injured in a Colorado car accident, only to discover the driver who caused it has no insurance. Or maybe the other vehicle leaves the scene, and the driver is never identified.
Does that mean there is no insurance available to compensate you?
Not necessarily. Uninsured and underinsured motorist coverage (UM/UIM) can provide an important source of compensation when the at-fault driver cannot fully cover your injuries.
But UM/UIM coverage doesn’t simply produce an automatic payment. Understanding how it works can help you protect your claim.
What Is UM/UIM Coverage in Colorado?
Uninsured motorist coverage generally applies when an insured person suffers bodily injuries caused by a driver who has no applicable auto insurance or in a qualifying hit-and-run accident.
Underinsured motorist coverage applies when the at-fault driver has insurance, but the available liability coverage is insufficient to compensate you fully for your legally recoverable damages.
Colorado law requires insurers issuing applicable automobile liability policies to provide UM/UIM coverage unless the named insured rejects the coverage in writing. Insurers must also offer UM/UIM limits equal to the policy’s bodily injury liability limits.
That makes checking your own policy one of the first important steps after an accident involving an uninsured or inadequately insured driver.
How Does UM Coverage Pay After an Uninsured-Driver Accident?
Suppose another driver runs a red light and seriously injures you. Your damages are $150,000, but you discover that the driver has no liability insurance.
If you have applicable UM coverage, you may make a claim through your own insurer, up to the coverage available under the policy.
You still have to establish the underlying claim. In other words, having UM coverage doesn’t eliminate the need to show that the other driver was legally responsible and establish the damages caused by the collision.
Depending on the case, recoverable bodily-injury damages may include medical expenses, lost income or earning capacity, pain and suffering, and other legally compensable losses.
How Does UIM Coverage Work When the Other Driver Has Some Insurance?
Underinsured motorist coverage fills a different gap.
Imagine your damages total $200,000, but the at-fault driver’s available bodily injury liability limit is only $50,000. If you have sufficient UIM coverage, your own policy may provide additional compensation for damages beyond the other driver’s available liability coverage, subject to your policy limits and Colorado law.
Colorado’s UM/UIM statute generally provides coverage for the difference between applicable liability limits and the damages sustained, up to the amount of UM/UIM coverage available.
The calculation depends on the actual damages and coverage involved, so policy limits shouldn’t be confused with a guaranteed payment.
Does UM Coverage Apply to Hit-and-Run Accidents?
Yes, UM coverage can apply to bodily injuries caused by a hit-and-run driver.
This can be particularly important when a driver causes a crash and disappears before anyone obtains insurance information—or even a license plate.
Colorado courts have also rejected attempts to make physical contact with the unidentified vehicle an absolute requirement for UM coverage. That can matter in a “miss-and-run” scenario where a negligent driver forces another vehicle off the road without actually striking it.
Evidence remains critical. Police reports, witnesses, surveillance footage, dash-camera recordings, photographs, and other evidence may help establish that another driver’s negligence actually caused the crash.
What Should You Do After an Uninsured or Hit-and-Run Crash?
Report the accident promptly and seek appropriate medical treatment. In a hit-and-run, contact law enforcement and preserve any information that might help identify the vehicle.
Photographs, witness contact information, dash-camera footage, nearby surveillance video, medical records, and insurance documents may all become important.
Most importantly, obtain your complete insurance policy and declarations page. Do not assume you lack UM/UIM coverage merely because you do not remember purchasing it; Colorado requires the coverage unless it was properly rejected in writing.
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