UM/UIM Coverage in Castle Rock Explained
Uninsured and underinsured motorist coverage (UM/UIM) in Colorado is an insurance protection that pays for your injuries when the driver who hit you has no insurance or not enough insurance to cover your medical bills, lost wages, and pain. Colorado law under C.R.S. § 10-4-609 requires every auto insurance policy to include this coverage unless you specifically rejected it in writing. With nearly one in six Colorado drivers carrying no coverage at all, per IRC data reported by CPR, UM/UIM may be the most important line on your insurance declarations page.
Understanding the Two Types of Coverage
Uninsured Motorist (UM) Coverage
UM coverage steps in when the at-fault driver has absolutely zero insurance. It also applies in phantom vehicle situations where a driver forces you off the road without making contact, and in hit-and-run crashes where the at-fault driver cannot be identified. Colorado courts have held that the UM statute requires coverage for hit-and-run drivers even when the identity of the negligent party is unknown.
Under C.R.S. § 10-4-609(6), a tortfeasor is deemed uninsured for purposes of UM coverage when they cannot be located for service of process after reasonable attempts. This creates a legal fiction that protects you even when the system cannot reach the person who hurt you.
Underinsured Motorist (UIM) Coverage
UIM coverage pays the difference between what the at-fault driver’s insurance covers and what your injuries actually cost, up to your own policy limits. Under C.R.S. § 10-4-609(4), an underinsured motor vehicle is one whose bodily injury coverage at the time of the accident is insufficient to compensate the injured person.
Here is the math that matters. Colorado’s minimum liability limits are $25,000 per person under C.R.S. § 10-4-620, confirmed by the Colorado Division of Insurance. A traumatic brain injury requiring lifetime care can cost millions. When the at-fault driver carries minimum coverage, $25,000 against a seven-figure damages picture is not insurance. It is a rounding error.
How Colorado’s UM/UIM Statute Works
Colorado’s UM/UIM framework under C.R.S. § 10-4-609 has several key features that differentiate it from other states.
Mandatory offer, optional acceptance. Every insurer must offer UM/UIM coverage equal to your bodily injury liability limits. You can reject it, but only in writing. If there is no signed written rejection in your file, you have the coverage.
One-time notification. Under C.R.S. § 10-4-609(3), after you initially select or reject coverage, the insurer does not have to notify you again on renewal. Many Colorado drivers made a coverage decision years ago they do not remember. A decision that now controls whether they can recover anything after a serious crash.
Coverage is additive, not duplicative. Under C.R.S. § 10-4-609(1)(c), UM/UIM coverage is in addition to any liability coverage. After the 2008 statutory amendments, insurers can no longer offset the at-fault party’s bodily injury payment against your UM/UIM limits.
$5,000 MedPay default. Every Colorado auto policy also includes $5,000 in Medical Payments coverage unless waived in writing. MedPay pays regardless of fault and is separate from UM/UIM coverage. It is a first-dollar benefit that helps cover immediate medical costs while you build your UM/UIM claim.
Who Is Covered Under UM/UIM?
UM/UIM coverage in Colorado protects more people than just the named policyholder. The typical Colorado auto policy extends UM/UIM protection to the named insured and family members residing in the same household, passengers in the insured vehicle, and in some cases, the named insured while riding in another vehicle or as a pedestrian.
The Tenth Circuit addressed the scope of covered persons in Pacheco v. Shelter Mut. Ins. Co., 583 F.3d 735 (10th Cir. 2009), holding that UM/UIM coverage must be offered to a class coextensive with the class covered under the liability provision. An insurer cannot use a resident-relative exclusion to narrow the class of people entitled to UM/UIM coverage.
How Much UM/UIM Coverage Should You Carry?
The minimum UM/UIM limits mirror Colorado’s minimum liability limits: $25,000 per person, $50,000 per accident. This is dangerously low. The Rocky Mountain Insurance Information Association recommends higher limits, and your UM/UIM limits should match the bodily injury liability limits you carry for your own protection.
Think of it this way. You are essentially buying insurance against every other driver on the road who did not buy enough. With 17.5% of Colorado drivers completely uninsured and many more carrying only minimums, the odds of needing this coverage are not theoretical. They are roughly one in six just for uninsured drivers alone.
The Connection to Bad Faith
Because UM/UIM claims pit you against your own insurer, they are fertile ground for bad faith conduct. When your insurance company unreasonably delays investigation, lowballs your claim without justification, or denies coverage based on technicalities, they may be violating C.R.S. §§ 10-3-1115 and 10-3-1116. A bad faith finding doubles the covered benefit and adds attorney fees.
Injured by an Uninsured or Underinsured Driver?
Call Rampart Injury Lawyers at for a free consultation.
We handle UM/UIM claims from our Castle Rock office and serve 13 communities along the I-25 corridor, from Greenwood Village to Colorado Springs.
We work on contingency.
You pay no attorney fee unless we recover compensation for you
Costs and expenses: Under Colorado Rule of Professional Conduct 1.5, clients remain liable for costs and expenses regardless of outcome in certain circumstances. Costs and expenses will be discussed before representation begins.
FAQ: UM/UIM Coverage in Colorado
Q: What happens if I rejected UM/UIM coverage?
A: If you signed a written rejection, your policy does not include UM/UIM coverage, and your options for recovery after a crash with an uninsured driver may be limited. You can request coverage be added at any time by contacting your insurer in writing. If your insurer cannot produce a signed written rejection form, you may have grounds to argue the coverage was never validly rejected.
Q: Does UM/UIM cover passengers in my vehicle?
A: Yes. UM/UIM coverage typically extends to passengers in the insured vehicle. The policy language controls the specifics, but Colorado law requires that the class of persons covered under UM/UIM be coextensive with the liability coverage class per Pacheco v. Shelter Mut. Ins. Co., 583 F.3d 735 (10th Cir. 2009).
Q: Can I use UM/UIM coverage if I am hit as a pedestrian or cyclist?
A: In most cases, yes. If you have an auto policy with UM/UIM coverage and you are struck by an uninsured or underinsured driver while walking or cycling, your auto policy’s UM/UIM coverage may apply. The specific policy language determines the scope, but Colorado’s UM/UIM statute is designed to protect the insured person, not just the insured vehicle.
Back to Pillar: Colorado Uninsured & Underinsured Motorist Lawyer
Related Sub-Pages: Hit-and-Run UM Claims | Stacking UM/UIM Coverage | How to File a UM/UIM Claim | UM/UIM Arbitration | Colorado Insurance Bad Faith Lawyers
DISCLAIMER & ATTORNEY IDENTIFICATION
Rampart Injury Lawyers is a trade name of Travis Legal Offices, LLC. Responsible attorney: Todd A. Travis. Principal office: 333 Perry Street, Suite 203, Castle Rock, CO 80104. Phone: (303) 766-8766. This page is attorney advertising. The content is for general informational purposes only and is not legal advice. Reading this page, contacting the firm, or submitting an intake form does not create an attorney-client relationship. Past results do not guarantee future outcomes. Every case is different and the outcome of any legal matter depends on the specific facts and applicable law. For legal advice on a specific matter, consult a licensed Colorado attorney.
Built Case by Case.
