You were injured in a car accident that was not your fault. After filing your claim, the insurance company tells you that the at-fault driver’s policy limit is the most you can get. For a lot of people in Colorado, that number does not come close to covering their medical bills, lost wages, or long-term care needs.
It’s important you know that your policy limit is not necessarily the end of what you can recover. Colorado law gives injured drivers real options to pursue full compensation, even when the at-fault driver’s insurance falls short.
The team at Olson Personal Injury Lawyers represents injured people in Colorado. If you need to explore your legal options after a car accident, call us at (303) 381-2234 for a free case review.
What Does "Policy Limit" Mean for You as the Injured Person?
A policy limit is the maximum dollar amount an insurance company will pay out on a single claim. Once the at-fault driver’s insurer reaches that ceiling, they stop paying. The rest of your damages become your problem unless you decide to take further action.
In Colorado, drivers are only required to carry:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $15,000 for property damage
These are the minimums set by Colorado law. Many drivers carry nothing more than the minimum. A single night in the hospital averages over $12,000 before surgeries, specialist visits, or physical therapy are added. In a serious accident, Colorado’s minimum coverage can be exhausted quickly.
Hitting the policy limit does not mean your case is over. It means the first phase of your claim is over and the second phase needs to begin.
Does Your Own Insurance Cover the Gap After a Car Accident in Colorado?
Underinsured motorist coverage, or UIM, is a type of insurance you purchase through your own policy. It is designed for exactly this situation: when the at-fault driver does not have enough coverage to pay for what you lost.
In Colorado, the at-fault driver’s insurance pays out first, up to their policy limit. Once that is exhausted, you can file a UIM claim with your own insurer. Your insurer then pays the difference between what the at-fault driver’s policy covered and your actual damages, up to your own UIM limit.
For example, let’s say your damages total to $80,000. The at-fault driver carries the Colorado minimum of $25,000. You have $50,000 in UIM coverage. You recover $25,000 from the at-fault driver’s insurer and $50,000 from your own, for a total of $75,000.
How to Find Out If You Have UIM Coverage on Your Colorado Auto Policy
In Colorado, insurers are required to offer UIM coverage to every policyholder. To not have it, you had to reject it in writing. If you do not remember doing that, there is a good chance you have it. Check your policy declarations page or call your insurer and ask directly.
Why You Must Notify Your Own Insurer Before Settling With the At-Fault Driver
Before you accept any settlement from the at-fault driver’s insurer, you must notify your own insurance company that you may have a UIM claim. If you sign a release with the at-fault insurer first without notifying your own carrier, you may permanently lose your right to file a UIM claim under Colorado law. The at-fault driver’s insurer will not tell you this, so you should not sign anything until you have spoken with a Colorado car accident attorney.
What to Do When Your Own Insurance Company Lowballs Your Claim in Colorado
Most people assume that because they pay their premiums, their own insurer will take care of them. In UIM claims, that is often not how it works.
Your insurance company has a financial incentive to pay you as little as possible, even on a claim you are filing against your own policy. Some common tactics include offering a lowball settlement, disputing how serious your injuries are, pointing to prior medical history to reduce your payout, or simply delaying long enough that you accept less out of financial pressure.
Colorado law addresses this directly. Under C.R.S. Section 10-3-1115, an insurance company cannot unreasonably delay or deny payment of a claim for benefits it owes you. Under C.R.S. Section 10-3-1116, if your insurer violates this, you may be entitled to two times the covered benefit that was delayed or denied, plus attorney fees.
Colorado uses a reasonableness standard, which means you do not need to prove your insurer acted with bad intent, you only need to show they acted unreasonably. This is one of the strongest bad faith insurance laws in the country, and most Colorado drivers do not know it exists.
If you feel like your insurance company is stalling, undervaluing your claim, or finding reasons to avoid paying, that is not just poor customer service. It may be a violation of Colorado law and you need to speak to an experienced lawyer that can guide you through the claim process.
Can You Sue the At-Fault Driver Personally for Damages Beyond Their Policy Limits?
After a car accident, you can file a civil lawsuit against the at-fault driver personally if their insurance doesn’t cover your full damages. A court judgment can lead to wage garnishment or liens on their assets.
That said, there is a practical reality here. Most drivers who carry only the state minimum in insurance do so because they do not have significant assets. Getting a judgment is one thing — collecting on it is another.
There are situations where pursuing the at-fault driver personally is worth exploring. An experienced attorney can investigate whether any of these apply to your case and identify every available source of compensation beyond the standard policy limits.
Other Sources of Compensation Colorado Car Accident Victims Commonly Overlook
Beyond UIM and a personal lawsuit, there are other sources of compensation that injured Colorado drivers often do not know to look for:
- MedPay coverage: This is a separate coverage on your own policy that pays your medical bills regardless of fault. It does not conflict with a UIM claim and can cover costs while your larger claim is still being resolved.
- Umbrella policies: Some at-fault drivers carry umbrella insurance above their standard policy. These policies are not always obvious. A thorough investigation by a car accident attorney can uncover them.
- Employer liability: If the at-fault driver was on the job when the crash happened, their employer may be liable. Commercial policies carry much higher limits than personal auto policies.
- Multiple defendants: In truck accidents, rideshare accidents, or multi-vehicle crashes, more than one party may carry insurance. Each separate defendant may add to the total available coverage.
At Olson Personal Injury Lawyers, attorneys like Brian Reynolds bring over 20 years of experience handling commercial truck and fleet crashes, and Matthew Broderick spent years on the defense side before switching to represent injured people. That background means they know where insurance companies hide coverage and how they evaluate claims from the inside.
The Mistake That Ends Most Colorado UIM Claims Before They Start
The most common and costly mistake injured Colorado drivers make is accepting a settlement from the at-fault driver’s insurer before talking to an attorney or notifying their own carrier.
The at-fault insurer will often move quickly. They will present their policy limit as a final, take-it-or-leave-it offer. The release you sign may look routine, but signing it without first notifying your own insurer can permanently cut off your right to file a UIM claim.
Colorado’s personal injury statute of limitations is three years from the date of the accident under C.R.S. Section 13-80-101. But your own auto policy may have a UIM notice deadline that is shorter. Missing it can waive your rights entirely, even if you are still within the three-year window.
Steps to Take Right Now If Your Car Accident Damages Exceed the Policy Limits
When filing a car accident claim, we recommend you to not sign or agree to anything without speaking to a car accident lawyer first. Getting a free case review costs you nothing; but signing the wrong document can cost you everything.
If your damages exceed the at-fault driver’s policy limits in Colorado, here is what to do:
- Do not sign any release or settlement agreement from any insurer yet.
- Pull out your own auto insurance policy and look for UIM coverage on your declarations page.
- Notify your own insurer in writing that you may have a UIM claim before any settlement is finalized.
- Gather and organize all documentation: medical records, bills, lost wages, and any future care estimates.
- Call Olson Personal Injury Lawyers for a free case review before any deadline passes.
Why Injured Colorado Drivers Choose Olson Personal Injury Lawyers
Dealing with insurance companies after a serious accident is exhausting. They have teams of adjusters and attorneys working to pay you as little as possible. You deserve someone working just as hard on your side. At Olson Personal Injury Lawyers, your case is personal to us. When you work with our team, you can expect:
- Zero Fee Guarantee. You pay nothing unless we win.
- 30-Day Guarantee. Try before you commit. If you are not satisfied within 30 days, you can end the agreement with no penalty and no financial obligation.
- We come to you. If you are at home recovering or at a medical facility, we meet you there. Virtual meetings over Zoom are also available.
We have a 99.6% case success rate and more than 450 five-star reviews from clients across Colorado, New Mexico, and Wyoming. When you need us, we are here; even after you receive your settlement.
Get Legal Guidance From Car Accident Lawyers Today
If your damages exceed what the at-fault driver’s insurance will cover, do not wait. Call Olson Personal Injury Lawyers for a free case review at (303) 381-2234 or contact us using our site form. We are here to help.
