When the At-Fault Driver’s Policy Limits Fall Short of Your Medical Bills

A serious crash can produce medical bills that pass $50,000 in a matter of weeks. Emergency care, imaging, surgery, therapy, and lost wages add up fast. The problem is that the driver who caused the crash may carry only the minimum coverage Colorado requires, and that policy may be the first and only number an adjuster puts on the table. When the at-fault driver’s limits fall short, the size of your recovery depends on finding every other source that can pay.

What are Colorado’s minimum liability limits?

Colorado requires drivers to carry at least $25,000 for injury to one person, $50,000 for injuries to everyone in one crash, and $15,000 for property damage. Many drivers buy exactly that. A single night in a hospital with imaging and a specialist consult can consume a large share of $25,000, and anything involving surgery or months of treatment can exceed it many times over. When several people are hurt in the same crash, they share the $50,000 total, which can leave each person with even less.

How do you find out what the at-fault driver’s limits are?

The at-fault driver’s limits are usually learned through a written request to their insurance company, often made by your attorney. Insurers don’t always volunteer the number, but Colorado law gives injured people a path to request policy limit information in many cases, and insurers often disclose limits when a claim clearly exceeds them. Knowing the limits early shapes every decision that follows, including whether to pursue other coverage and how to handle a settlement offer.

What happens when the insurer offers the full policy limits?

When the at-fault driver’s insurer offers its full limits, it is called a policy limits tender, and accepting it requires care. Before you sign a release, you need to know whether your own underinsured motorist carrier must be notified and consent to the settlement, whether anyone else shares responsibility for the crash, and whether liens from health insurers or medical providers will come out of the money. Signing the wrong release too quickly can cut off claims you didn’t know you had.

How does your own underinsured motorist coverage help?

Underinsured motorist coverage on your own policy pays when the at-fault driver’s limits aren’t enough to cover your losses. In Colorado, UIM coverage is paid in addition to what the at-fault driver’s insurer pays, rather than reduced by it. If the other driver had $25,000 and you carry $100,000 in UIM coverage, you may have up to $125,000 available, depending on your damages. Our article on uninsured and underinsured motorist coverage in Colorado explains what the statutes say.

What other sources can pay when limits run out?

Other sources that may pay include your own medical payments coverage, the at-fault driver’s umbrella policy, the vehicle owner’s policy if someone else’s car was being driven, an employer’s commercial policy if the driver was working, and any other driver or party who shares fault. Each must be identified and claimed, often early. Our article on how multiple coverages work together after a serious Colorado crash walks through how those layers fit.

Can you go after the at-fault driver personally?

You can sue the at-fault driver personally for amounts above their insurance, but collecting from them is another matter. Many drivers who carry minimum limits don’t have significant assets, and some property is protected from collection by law. A personal judgment can still be worthwhile when the driver has assets, income, or coverage that wasn’t disclosed at first. Your attorney can weigh whether pursuing the driver beyond the policy makes sense.

Why does your health insurance matter in a limits case?

Health insurance matters because it pays medical bills at lower negotiated rates while your claim is pending, and because it will usually want reimbursement from your recovery. In a limits case, that reimbursement can eat into money that is already too small. Colorado’s rules on liens and reimbursement, including how much an insurer can take and when it must reduce its claim, can make a large difference in what you keep. Our article on medical liens after a Colorado accident covers how those claims are handled.

How can you protect yourself before the next crash?

The best protection is your own coverage, bought before you need it. Review your declarations page and consider carrying uninsured and underinsured motorist coverage at limits that match your own liability coverage, plus medical payments coverage. Those coverages exist for exactly the situation where the other driver didn’t buy enough. Our complete guide to Colorado auto insurance after an accident explains each coverage in plain English.

Frequently Asked Questions

What happens if my medical bills are more than the other driver’s insurance?

The at-fault driver’s insurer pays only up to its policy limits. Beyond that, your own underinsured motorist coverage, medical payments coverage, any umbrella or employer policy, and other at-fault parties may provide more. You can also pursue the driver personally, though collecting can be difficult.

What is Colorado’s minimum car insurance coverage?

Colorado requires minimum liability coverage of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 for property damage. Those minimums often fall far short of the cost of a serious injury, which is why underinsured motorist coverage is so important.

Does underinsured motorist coverage pay in addition to the other driver’s policy?

In Colorado, yes. Underinsured motorist coverage is paid in addition to what the at-fault driver’s insurer pays, up to your UIM limits and your actual damages. It is not reduced by the amount the at-fault driver’s insurer already paid.

Should I accept a policy limits offer?

A policy limits offer may be the most the at-fault driver’s insurer will ever pay, but don’t sign anything until you understand what the release covers. You may need to notify your own UIM carrier first, and liens and other responsible parties must be accounted for. A lawyer can review the release before you sign.

Can I sue the at-fault driver for more than their insurance covers?

Yes, you can pursue the driver personally for damages above their policy limits. Whether that makes sense depends on the driver’s assets, income, and any other coverage. Many minimum-limits drivers have little to collect, so the decision should be made with your attorney.

When should I talk to a lawyer about a policy limits problem?

Talk to a lawyer as soon as it looks like your medical bills may exceed the other driver’s coverage. Early action helps identify every source of payment and avoids releases that cut off claims. Flanagan Law offers free consultations at 720-928-9178.

If your medical bills are outgrowing the at-fault driver’s insurance after a Colorado crash, call Flanagan Law at 720-928-9178 for a free consultation.