The Colorado Uninsured Driver Problem — And Why UM Coverage Isn't Optional
Colorado has one of the higher rates of uninsured drivers in the nation. If you get hit by one, your own insurance is the only thing standing between you and a massive out-of-pocket bill — unless you have the right coverage.
More Drivers Than You Think Have No Insurance
Colorado law requires every driver to carry liability insurance. But the reality is that a significant percentage of drivers on Colorado roads are uninsured at any given time — estimates consistently put the figure above 15%, meaning roughly 1 in 6 or 7 drivers you pass has no coverage.
That number spikes after economic downturns, during periods of high inflation, and in lower-income zip codes. Colorado Springs, with its mix of military, working-class, and transient populations, is no exception to this trend.
The uncomfortable truth: You can drive perfectly, follow every law, and still end up in a serious accident caused by someone with zero insurance and zero assets. Without the right coverage on your own policy, you absorb the entire financial hit yourself.
What Happens When an Uninsured Driver Hits You
Here's how it plays out in the real world. Someone runs a red light and T-bones your vehicle. You're injured. Your car is totaled. You get out, exchange information, and discover they have no insurance — or they flee the scene entirely.
If you only have the Colorado minimum liability coverage on your own policy, here's what you're looking at:
- Your vehicle damage: Only covered if you have collision coverage. If you dropped collision to save money, you pay out of pocket.
- Your medical bills: Only covered if you have Medical Payments (MedPay) coverage or Personal Injury Protection (PIP). Without it, you're filing on your health insurance — with deductibles, copays, and limits that may not cover everything.
- Your lost wages: If you're injured and can't work, you recover nothing from the at-fault driver who has nothing.
- Your pain and suffering: You can sue the uninsured driver. But if they have no insurance, they likely have no assets worth pursuing. It's a legal win with no financial outcome.
What Uninsured Motorist Coverage Actually Does
Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage is an add-on to your own auto policy that steps in when the at-fault driver can't pay. Here's what it covers:
- UM Bodily Injury (UMBI): Pays for your medical bills, lost wages, and pain and suffering when an uninsured driver injures you.
- UM Property Damage (UMPD): Pays to repair or replace your vehicle when an uninsured driver damages it — often without requiring you to pay your collision deductible.
- Underinsured Motorist (UIM): Kicks in when the at-fault driver has insurance, but not enough. If they carry $25,000 in liability and your medical bills are $80,000, your UIM coverage pays the gap.
- Hit-and-run coverage: In most cases, UM coverage extends to hit-and-run accidents where the other driver flees and can't be identified.
What does it cost? Adding solid UM/UIM coverage to an existing auto policy typically costs $10–$30 per month. It's one of the highest-value additions you can make to any auto policy.
Colorado's Specific Requirements — and the Loopholes
Colorado requires insurers to offer UM/UIM coverage to every policyholder. However, you can waive it in writing — and many people do, often without fully understanding what they're giving up. If you've ever signed a form declining UM/UIM coverage, check your policy today to confirm whether you have it.
Colorado also has a stacking law that allows you to stack UM/UIM limits across multiple vehicles on the same policy in some cases — meaning more protection for the same premium. Ask your agent whether your policy is structured to maximize this benefit.
Who Needs UM/UIM Coverage?
The short answer: everyone who drives. But it's especially critical if:
- You drive frequently on I-25, Powers, or other high-traffic corridors in Colorado Springs
- You have a family — UM/UIM coverage protects every passenger in your vehicle
- You rely on your income and can't afford extended time off work due to injury
- You don't have robust health insurance that would cover serious accident injuries
- You own a vehicle worth more than $15,000 (the minimum UM property damage limit won't cover a total loss)
What to Do Right Now
Pull out your auto policy declaration page — the one-page summary of your coverage. Look for a line that says "Uninsured Motorist" or "UM/UIM." If it's blank, showing $0, or you don't see it at all, you may have waived it or your policy doesn't include it.
Call your agent and ask specifically: "What are my UM and UIM limits, and are they the same as my liability limits?" Ideally, your UM/UIM limits should match your liability limits. If you're carrying $100,000/$300,000 in liability but only $25,000/$50,000 in UM/UIM, you have a gap.
This is a five-minute conversation that could save you hundreds of thousands of dollars in the worst-case scenario. If you're not sure what your policy says, I'm happy to review it with you — at no cost and no obligation.
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Ryan Reardon
Ryan grew up in Littleton, CO, graduated from Colorado State University in Fort Collins, and now calls Colorado Springs home. Agency License #920206 · NPN: 21766210