Insurance exists to help in case you are involved in an accident. However, it’s important that you have all of the information needed to get full compensation from your claim. Did you know that multiple insurance claims could mean multiple payouts for you?
Key Takeaways
- When multiple insurance policies cover an accident — such as the at-fault driver’s liability policy and your own underinsured motorist coverage — you may be able to file separate claims and receive separate payouts.
- Colorado law allows stacking of underinsured/uninsured motorist (UM/UIM) coverage in certain situations, potentially doubling or tripling your available coverage.
- Understanding all available insurance sources before accepting a settlement is critical — once you sign a release, you may forfeit your right to pursue additional claims.
COLORADO SUPREME COURT SAYS (CALDERON V. AMERICAN FAMILY)
Colorado Law
Colorado’s UM/UIM statute (C.R.S. § 10-4-609) requires auto insurers to offer uninsured and underinsured motorist coverage. In some cases, multiple UM/UIM policies can be stacked to increase the total coverage available. Before accepting any settlement, an attorney should review all policies that may apply to your accident.
Mr. Calderon was injured in a motor vehicle accident with an uninsured motorist. Like many of my clients, sometime prior to the incident, Mr. Calderon purchased two policies of insurance — uninsured/underinsured (um/uim) motorist coverage and medical payments (MedPay) coverage. Following the accident, MedPay coverage was used to pay Mr. Calderon’s medical providers. Mr. Calderon made a claim for his um/uim coverage, and after getting nowhere with his insurance company, Mr. Calderon filed a lawsuit. The jury returned a verdict in his favor but the trial court reduced his award by $5000 as a set off for the MedPay coverage. In other words, the trial court said Mr. Calderon received the benefit of his paid-for MedPay coverage ($5000) and he, therefore, wasn’t entitled to keep that as part of the jury’s award. The Colorado Supreme Court disagreed. In short, the Court said the amount of um/uim coverage could not be reduced in a particular case by a setoff from any other coverage, including MedPay coverage. The jury awarded Mr. Calderon $68,338.97 in damages against his insurance company; the trial court reduced that by $5000. The Supreme Court said this was wrong — Mr. Calderon had paid two separate premiums (one for MedPay, one for um/uim coverage) — and therefore, Mr. Calderon’s damages could not be reduced by the $5000 paid out in MedPay coverage.
Why Is This Important?
- When purchasing insurance, work with your agent to fully understand the coverages you are purchasing. Insurance policies often need to be clearer, better written, and mostly benefit the insurance company.
- Never let the insurance company dictate what you may be entitled to
- Auto accident cases can sometimes be complex and involve many different insurance providers and coverages; always consult a qualified attorney after you’ve been involved in an auto accident
Cave Law offers free consultations for all auto accident cases. Call today at 303-680-9000 to discuss your rights and options if you’ve been injured in an auto accident.
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Frequently Asked Questions
Can I file two insurance claims for one accident?
Yes. If multiple insurance policies apply — for example, the at-fault driver’s liability policy and your own underinsured motorist policy — you may file separate claims against each. The total compensation you receive can exceed what either policy would pay individually. An attorney can identify all applicable policies.
What is UM/UIM coverage stacking in Colorado?
Stacking means combining coverage from multiple uninsured or underinsured motorist policies. For example, if you have UM/UIM coverage on two vehicles, you may be able to combine those coverage limits. Colorado law allows stacking in certain circumstances. Whether your policies permit stacking depends on the specific language in your insurance contracts.
Will filing multiple claims increase my insurance rates?
Filing a claim against the at-fault driver’s insurance should not affect your rates. Filing a claim against your own UM/UIM coverage may or may not impact your rates depending on your insurer. However, the financial recovery from a legitimate claim typically far outweighs any potential rate increase. An attorney can advise you on the best strategy.
Should I accept the first insurance settlement offer?
Almost never. The first offer is typically much lower than the full value of your claim, and accepting it usually requires you to sign a release giving up all future claims — including against other policies. Consult with an attorney to understand the full range of coverage available before signing anything.
