Strategies for Handling Underinsured Motorist Claims
Being injured in a car accident is difficult enough, but the situation becomes even more stressful when the at-fault driver does not have enough insurance to cover your losses. Unfortunately, this is a common scenario in Colorado, where many drivers carry only the minimum required coverage. When medical bills, lost wages, and vehicle repairs exceed the limits of the other driver’s policy, knowing how to pursue an underinsured motorist claim becomes essential.
At Gama Law Firm LLC, we help clients in Denver, Colorado, and surrounding areas who find themselves in this position. As experienced attorneys, we have handled numerous cases where victims were left with substantial expenses following a collision.
Understanding how underinsured motorist coverage works—and how to work through the claims process—can make all the difference in recovering full compensation.
Underinsured Motorist Coverage
Underinsured motorist (UIM) coverage is a type of protection included in many Colorado auto insurance policies. It provides compensation when the at-fault driver’s liability limits are too low to pay for the damages caused. For example, if another driver carries $25,000 in bodily injury coverage but your total damages reach $100,000, your UIM coverage can step in to cover the remaining $75,000, depending on your policy limits.
Colorado law requires insurance companies to offer this coverage to all drivers, although individuals may opt out of it in writing. We always recommend keeping it because it provides protection against financial hardship in the event of an accident. At our law firm, we have seen how UIM coverage can bridge the gap when the at-fault driver’s policy falls short.
Determining When to File an Underinsured Motorist Claim
You should consider an underinsured motorist (UIM) claim if your total damages surpass the at-fault driver’s policy limits. The process usually starts once you’ve exhausted their coverage, which involves accepting the maximum settlement from their insurer before activating your own UIM policy.
Timing is important. In Colorado, insurance companies often require that you notify them of a potential UIM claim as soon as you become aware that the at-fault driver’s coverage is insufficient. Failing to do so may result in delays or denials of your application. As auto accident attorneys, we assure that proper notice is provided early and that all policy requirements are met to protect your eligibility for benefits.
Reviewing Your Insurance Policy
Before filing a claim, it is essential to review your own insurance policy. Every policy has unique language that dictates how coverage applies, the amount of compensation available, and the procedures that must be followed. We recommend checking:
Policy limits: The maximum amount your insurer will pay under UIM coverage
Stacking rules: Whether you can combine multiple vehicle policies for higher coverage
Exclusions: Specific circumstances where coverage does not apply
Notice requirements: Deadlines for notifying the insurer of potential claims
Insurance policies are often written in convoluted language, making them difficult to interpret. We thoroughly examine the policy terms to identify coverage opportunities and prevent insurers from exploiting loopholes.
Collecting Evidence to Support Your Claim
A strong underinsured motorist claim requires thorough documentation. Because your own insurer becomes the opposing party once a UIM claim is filed, you must prove the extent of your damages just as you would in a case against another driver. Important evidence includes:
Medical records: Demonstrating the severity and cost of injuries
Police reports: Establishing fault and details of the collision
Repair estimates: Showing vehicle damage and associated costs
Employment documentation: Confirming lost wages and reduced earning capacity
Expert opinions: Supporting claims for future medical expenses or pain and suffering
We gather this evidence from the very beginning of the case. Our experience as an auto accident lawyer allows us to anticipate what insurers will challenge and to build a file that clearly supports the full value of your claim.
Negotiating With the Insurance Company
Once your underinsured motorist claim is submitted, your insurance company will investigate the case just as an opposing insurer would. Their adjusters may question your injuries, dispute the medical costs, or attempt to assign partial fault to reduce their payout.
Negotiating effectively requires persistence and documentation. We communicate directly with insurers to present the evidence, respond to challenges, and push for a settlement that reflects the true extent of your losses. We understand how insurers operate and how to counter their tactics. Our approach focuses on achieving fair results without unnecessary delays.
Recognizing Bad Faith Practices
In some cases, insurers fail to handle underinsured motorist claims fairly. They may delay payments, ignore evidence, or undervalue legitimate damages. This is known as bad faith, and it violates Colorado’s insurance laws.
Common examples include:
Unreasonable delays: Failing to respond promptly to communications or documentation
Lowball offers: Proposing settlements far below the claim’s actual value
Improper investigations: Ignoring key evidence that supports the insured’s position
Policy misrepresentation: Providing misleading information about coverage or limits
When an insurer acts in bad faith, additional legal remedies may be available. We pursue these claims to hold insurers accountable and recover compensation for the stress and financial harm caused by their misconduct. Our work often includes taking a firm stance against such practices.
Coordinating Benefits and Avoiding Duplicate Payments
One common challenge in underinsured motorist cases is coordinating payments from different sources. For example, you might receive compensation from the at-fault driver’s insurer, your health insurance, and your UIM coverage. It's essential to avoid unintentionally accepting duplicate payments for the same damages, as this could complicate your claim.
We carefully review each payment source and verify that settlements are structured correctly, preventing errors that could jeopardize your rights or reduce your overall recovery.
Calculating Full Compensation
Determining the amount of compensation to seek involves evaluating both economic and non-economic damages. These include medical expenses, lost wages, future care needs, and emotional distress.
Medical expenses: Hospital bills, therapy, medication, and rehabilitation
Loss of income: Time missed from work and potential career impact
Pain and suffering: Ongoing discomfort or loss of enjoyment of life
Property damage: Vehicle repairs or replacement
Future losses: Anticipated costs related to long-term recovery
We take the time to calculate each of these categories with precision. We collaborate with medical and financial experts to estimate future costs, so that our clients receive compensation that covers both immediate and long-term effects.
When Litigation May Be Necessary
Most underinsured motorist claims are resolved through negotiation, but some cases require litigation. If your insurer refuses to pay a fair amount or acts in bad faith, filing a lawsuit may be the only way to secure full recovery.
Litigation enables the court to examine the evidence, assess damages, and compel the insurer to fulfill its obligations. We approach every case with readiness to go to trial if necessary. We prepare comprehensive arguments that demonstrate the insurer’s responsibility under the policy.
Protecting Your Rights After an Accident
The time immediately following an accident can be overwhelming, especially when you discover the other driver’s insurance coverage is insufficient. Knowing what to do in those first few days can make a significant difference in the outcome of your claim.
Seek medical care: Always prioritize health and safety.
Report the accident: Notify law enforcement and your insurance company promptly.
Document everything: Keep detailed records of all communication, expenses, and progress toward recovery.
Consult legal counsel: Early guidance helps prevent mistakes that could harm your case.
We understand how stressful these situations can be. Our role is to provide clarity and take over the process, allowing clients to focus on their healing.
Why Experience Matters in UIM Claims
Underinsured motorist claims require deep knowledge of both insurance policy language and Colorado law. Insurers often use technicalities to minimize payouts, so having an attorney who understands how to challenge their reasoning is critical.
We have spent years representing accident victims across Denver,Colorado, and surrounding areas, including Aurora, Parker, Centennial, and Castle Pines. Our familiarity with local courts, insurers, and medical experts allows us to build strong cases from the start. When you work with an experienced auto accident lawyer, you gain an advocate who knows how to go through every stage of the claim.
Reach Out Today
At Gama Law Firm LLC, we proudly represent clients who have been involved in accidents with underinsured drivers. We understand the frustration that comes with facing mounting expenses after a collision, and we are here to help you pursue the compensation to which you may be entitled. Contact us today to discuss your case and learn how we can help you achieve a fair recovery.