What Happens When the At-Fault Driver is Underinsured in Colorado?

When you are injured in a car accident caused by another driver, and their insurance is insufficient to cover your damages, it can create a significant financial burden. In Colorado, this situation often arises when the at-fault driver carries only the minimum required liability insurance, which may not be enough to fully compensate you for your medical bills, lost wages, property damage, and other losses.

In such a scenario, you may have the option to file a claim under your own insurance policy if you carry Underinsured Motorist (UIM) coverage. However, navigating this process without legal assistance from an experienced car accident lawyer can be challenging and may result in an unfavorable outcome.

Why You Should Consult an Injury Attorney

When dealing with an underinsured motorist claim, it is crucial to consult with a personal injury attorney rather than trying to handle the matter on your own with your insurance company. Here’s why:

1. Insurance Companies Are Not Always on Your Side

Insurance companies, including your own, are in the business of minimizing payouts. While they are legally obligated to process claims, they often employ tactics designed to reduce the amount they pay on underinsured motorist claims. Common strategies include:

• Disputing the extent of your injuries or damages: Insurers may argue that your injuries are less severe than claimed or that your medical treatments were unnecessary.
• Delaying payment: Insurance companies may drag out the claims process to pressure you into accepting a lower settlement.
• Offering low settlements: Initial settlement offers are often far below the actual value of your claim, and without legal knowledge, it can be difficult to recognize whether you’re being shortchanged.

2. An Attorney Can Help You Maximize Your Recovery

A personal injury attorney specializes in understanding insurance laws, coverage limits, and the complexities of underinsured motorist claims. When you work with an attorney, they can:

• Accurately assess your damages: An attorney will work with medical professionals and other experts to calculate the full extent of your damages, including future medical expenses, lost wages, and pain and suffering, ensuring you pursue the full amount of compensation you deserve.
• Handle negotiations: Insurance companies are more likely to take a claim seriously when they know you are represented by an attorney. Your lawyer will negotiate on your behalf, pushing for a fair settlement that reflects the true value of your claim.
• File a lawsuit, if necessary: If your insurance company refuses to offer a reasonable settlement, a personal injury attorney can file a lawsuit to pursue the compensation you are entitled to through legal action.

3. Insurance Companies May Misinterpret or Deny Your Claim

Filing an underinsured motorist claim requires proving that the at-fault driver’s insurance coverage is insufficient to cover your damages. This involves obtaining documentation from the other driver’s insurance company, as well as demonstrating the full extent of your financial losses.

Without legal guidance, you may face several hurdles:

• Disputes over coverage limits: Your insurance company may argue that the at-fault driver’s insurance is adequate or that your damages don’t exceed their policy limits, which can delay or prevent your claim from being approved.
• Challenging the value of your injuries: Even if the underinsured driver’s coverage is insufficient, your insurance company may still challenge the value of your medical bills or lost wages.
• Complexity of stacking policies: Colorado allows for the “stacking” of underinsured motorist coverage across multiple policies, which can significantly increase the compensation available to you. However, understanding and applying this law can be difficult without legal assistance, potentially leaving you undercompensated.

Steps to Take if the Other Driver is Underinsured

If the at-fault driver is underinsured in Colorado and you need to make a claim under your UIM coverage, here’s why having an attorney is critical:

Review Your Insurance Policy with an Attorney

Our attorney will review your auto insurance policy limits to determine the amount of UIM coverage you have and advise you on the potential compensation available under your policy.

Colorado allows for “stacking” coverage of UIM policies, meaning if you have multiple vehicles insured, you may be able to combine or “stack” the UIM coverage limits. An attorney can help you apply this rule to maximize your claim.

Collect all the Evidence You Can 

Our attorney at Boesen Law will work with you to obtain proof that the at-fault driver’s insurance coverage is insufficient to cover your damages. This may involve requesting documentation from the at-fault driver’s insurance company and gathering evidence of your medical bills, lost wages, and other damages.

Our attorneys can access medical and financial experts who can accurately calculate the total value of your claim, ensuring that you receive compensation for all aspects of your losses, including non-economic damages such as pain and suffering.

Submit a UIM Claim and Negotiate

Your attorney will submit a claim to your insurance company, outlining the damages that exceed the at-fault driver’s liability coverage. This ensures that your claim is filed correctly and promptly.

Negotiation: If your insurance company disputes the value of your claim or offers a low settlement, your attorney will negotiate on your behalf to secure the full compensation you are owed under your UIM policy.

4. Litigation if Necessary

If negotiations with your insurance company fail to produce a fair settlement, an Aurora personal injury lawyer, can escalate the matter by filing a lawsuit, if that’s the city you’re located in. Try to find an injury attorney near you whether you’re in Denver or Colorado Springs as an example. Insurance companies are more likely to settle fairly when faced with the prospect of litigation.

Colorado’s Legal Framework for Underinsured Motorist Coverage

• Colorado Revised Statutes: Colorado law requires insurance companies to offer Uninsured/Underinsured Motorist (UM/UIM) coverage when you purchase a policy. While UIM coverage is not mandatory, it is an important form of protection, as many drivers carry only the minimum liability limits required by law, which may be inadequate in a serious accident.
• Stacking of Policies: Colorado allows for “stacking” of UIM policies, which means if you have multiple vehicles insured, you may be able to combine or “stack” the UIM coverage limits from each vehicle to increase the total amount of coverage available to you.

Importance of Timely Action (statute of limitations)

Colorado has a statute of limitations for filing underinsured motorist claims, typically 3 years from the date of the accident. Failing to file your claim within this timeframe can result in forfeiting your right to recover compensation. A personal injury attorney will ensure that all legal deadlines are met, protecting your rights throughout the claims process.