A firm declining your case over low policy limits is telling you its own intake threshold requires more than that policy offers. What that policy pays is a floor, not a ceiling on your total recovery. If you were declined for a different reason, this overview covers the most common reasons cases are declined..
The at-fault driver’s policy limits cap what their insurer will pay. They do not cap what you can collect if you carry underinsured motorist coverage on your own policy. Before accepting this decline as the end of the road, you need to know what your own declarations page says.
What Colorado’s Minimum Liability Limits Actually Cover
Colorado requires drivers to carry a minimum of $25,000 in bodily injury liability coverage per person and $50,000 per accident. Those minimums have not kept pace with the cost of serious injury, and a driver who meets the state minimum may carry far less coverage than the treatment costs your injury generated. When the at-fault driver’s policy is exhausted before your damages are covered, you are left with a gap between what their insurer pays and what you are actually owed.
That gap is not necessarily a dead end. It is the problem that underinsured motorist coverage exists to solve. When a firm declines your case because the at-fault driver’s limits are low, the relevant question is whether they evaluated your own policy before making that call. Many firms look at the at-fault driver’s limits and stop there. That is an incomplete analysis.
Why Your Own UIM Policy May Be the Larger Source of Recovery
Underinsured motorist coverage, commonly called UIM, is a component of your own auto insurance policy that pays when an at-fault driver’s coverage is insufficient to cover your damages. In Colorado, insurers are required to offer UIM coverage to every policyholder, though you can decline it in writing. If you did not decline it, you likely have it. The amount varies by policy, but UIM limits are often set equal to your liability limits, which may be substantially higher than the at-fault driver’s minimums.
Here is how it works in practice. If the at-fault driver carries $25,000 in coverage and your damages total $80,000, their insurer pays $25,000. Your UIM policy then covers the remaining $55,000, up to your policy’s UIM limit. The at-fault driver’s low limits did not cap your recovery. They determined which insurer pays first and which pays second.
This structure matters because a firm that evaluated your case only against the at-fault driver’s policy may have reached a conclusion that the full picture does not support. Rideshare accident cases and motorcycle injury claims are particularly common examples of this, where the primary policy is either low or subject to dispute, and the injured person’s own coverage is the real recovery source.
Finding Your UIM Coverage on Your Declarations Page
Your auto insurance declarations page is the summary document your insurer sends at the start of each policy period. It lists your coverage types, limits, and premiums in a single document. To find your UIM coverage, look for a line item labeled UM/UIM, uninsured motorist, or underinsured motorist. The number listed is the per-person limit your policy will pay above the at-fault driver’s coverage.
If you cannot locate your declarations page, call your insurer and ask for a coverage summary. You are entitled to that information. If you declined UIM coverage in writing when you purchased your policy, that declination will appear in your policy documents. If you do not see a signed UIM declination and the coverage does not appear on your declarations page, your insurer may have failed to offer it properly, which creates a separate issue worth discussing with an attorney.
Francis Law Reviews the Full Coverage Picture
When a firm declines because the at-fault driver’s limits are low, the most useful next step is a review that looks at both policies together, not just the at-fault driver’s. Francis Law evaluates the full coverage picture in every case, including your own UM/UIM coverage, any applicable umbrella policies, and any other sources of recovery that the initial evaluation may have missed. We take cases where the at-fault driver’s limits are low when your own coverage creates a viable path to full recovery. A second opinion that reviews both policies together is often where that gap gets identified.
If you have been turned down for this reason and have not had someone look at both policies together, that is the review worth having. Call Francis Law at (303) 409-2050 or email intake@francislawcolorado.com. The consultation costs you nothing and starts from the complete coverage picture rather than from the at-fault driver’s policy alone.
Frequently Asked Questions About Low Policy Limits and Injury Claims
Can I use my own car insurance to recover damages when the at-fault driver has low coverage?
A: Yes, if you carry UIM coverage. Colorado law allows you to collect from your own UIM policy when the at-fault driver’s coverage is insufficient to cover your damages. Using your own UIM policy does not mean you are making a claim against yourself in any punitive sense. It is coverage you paid for specifically for this situation, and using it is not an admission that you were at fault.
Will my car insurance rates increase if I file an underinsured motorist claim in Colorado?
A: Colorado law prohibits insurers from surcharging or canceling a policy solely because you made a UIM claim when the accident was not your fault. That said, insurance practices vary and you should confirm with your insurer how a UIM claim is treated under your specific policy. An attorney can advise you on how to structure the claim to minimize any policy implications.
What happens to my injury claim if I waived underinsured motorist coverage on my policy?
A: If you signed a valid UIM declination, your policy does not include that coverage and you cannot collect from your own insurer for the gap. However, you should verify that the declination was properly documented. Colorado requires insurers to obtain a signed, written declination of UM/UIM coverage. If the insurer cannot produce that documentation, you may have UIM coverage that was never properly declined. An attorney can help you determine whether the declination in your file is valid.