Citizen's Guide to Colorado Uninsured / Underinsured Motorist Coverage

If you pay the premium for this coverage, we will pay for damages that an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle or an underinsured motor vehicle because of bodily injury: 1. sustained by an insured person; 2. caused by an accident; and 3. arising out of the ownership, maintenance or use of an uninsured motor vehicle or an underinsured motor vehicle. We will pay under this Part III only after the limits of liability under all applicable bodily injury liability bonds and policies have been exhausted by payment of judgments or settlements.

If you pay the premium for this coverage, we will pay for damages that an insured person is legally entitled to recover from the owner or operator of an uninsured motor vehicle because of property damage: 1. caused by an accident; and 2. arising out of the ownership, maintenance, or use of an uninsured motor vehicle.

Any insured person who brings a lawsuit against an owner or operator of: 1. an uninsured motor vehicle or an underinsured motor vehicle with respect to a bodily injury claim; or 2. an uninsured motor vehicle with respect to a property damage claim; must promptly notify us of the filing of said lawsuit.

Insured person means: a. you, a relative, or a rated resident; b. any person while operating or using a covered auto with the permission of you, a relative, or a rated resident; c. any person occupying, but not operating, a covered auto; and d. any person who is entitled to recover damages covered by this Part III because of bodily injury sustained by a person described above.

Underinsured motor vehicle means a land motor vehicle to which a bodily injury liability bond or policy applies at the time of the accident, but its limit of liability for bodily injury is less than the amount of the insured person's bodily injury damages. An underinsured motor vehicle does not include any vehicle or equipment owned by you, a relative, or a rated resident, available for their regular use, owned by a governmental unit, operated on rails or crawler treads, designed mainly for off-road use while not on public roads, located for use as a residence or premises, that is a covered auto, or that is an uninsured motor vehicle.

Uninsured motor vehicle means a land motor vehicle or trailer of any type: a. to which no bodily injury liability bond or policy applies at the time of the accident; b. to which a bodily injury liability bond or policy applies at the time of the accident, but the bonding or insuring company denies coverage or is or becomes insolvent; c. that is a hit-and-run vehicle whose owner or operator cannot be identified and that causes an accident resulting in property damage or in bodily injury to an insured person, provided that the insured person, or someone on his or her behalf, reports the accident to the police or civil authority within 24 hours or as soon as practicable after the accident; or d. that is operated by an alleged tortfeasor who is deemed to be uninsured as set forth in Colorado Revised Statute 10-4-609, as amended.

Coverage under this Part III will not apply to bodily injury sustained while using or occupying a covered auto being used to carry persons or property for compensation or a fee, for retail or wholesale delivery, or for ride-sharing activity. Shared-expense car pools are excepted. It also will not apply to unauthorized use of another vehicle by you, a relative, or a rated resident; claims that directly or indirectly benefit a workers' compensation or disability insurer; punitive or exemplary damages; bodily injury where the claimant settles without written consent; or bodily injury arising out of a personal vehicle sharing program.

The limit of liability shown on the declarations page for Uninsured/Underinsured Motorist Coverage is the most we will pay regardless of the number of claims made, covered autos, insured persons, lawsuits brought, vehicles involved in the accident, or premiums paid. If the declarations page shows split limits, the each-person amount is the most payable for all damages due to bodily injury to one person, and the each-accident amount is the most payable for all damages due to bodily injury to two or more persons in one accident. The each-person limit includes all derivative claims, including emotional injury, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death. If the declarations page shows a combined single limit, that amount is the most payable for the total of all bodily-injury damages resulting from any one accident.

The damages recoverable for bodily injury under this Part III will be reduced by all sums paid because of bodily injury by or on behalf of any persons or organizations that may be legally responsible and by sums paid under Part I — Liability To Others. We will not pay under this Part III any expenses paid or payable under Part II — Medical Payments Coverage. No one will be entitled to duplicate payments for the same elements of damages.

If there is other applicable uninsured or underinsured motorist coverage, we will pay only our share of the damages. Our share is the proportion that our limit of liability bears to the total of all available coverage limits. Coverage for a vehicle that is not a covered auto is excess over any other UM/UIM coverage. If the carrier and an insured person cannot agree on the legal liability of the operator or owner of an uninsured motor vehicle, or the amount of damages sustained by the insured person, the matter will be determined by arbitration only if both sides mutually agree to arbitration before the bodily-injury statute of limitations expires.