Colorado Car Accident Law · UIM Claims
How Long Do You Have to File an Underinsured Motorist (UIM) Claim in Colorado?
In Colorado, you generally have 3 years from the date your claim accrues (usually the crash date) to file a UIM lawsuit or demand arbitration. If you settle the at-fault driver's bodily-injury claim, you may get 2 years from the date payment is received — but the law guarantees you'll never have less than 3 years from accrual, whichever ends later.
Underinsured motorist (UIM) coverage exists for one reason: the driver who hit you didn't carry enough insurance to cover what they cost you. Colorado only requires drivers to carry $25,000 per person in bodily-injury liability coverage — a number that a single ambulance ride and one MRI can blow past. When the at-fault policy runs dry, your own UIM coverage is supposed to fill the gap.
The catch is timing. UIM claims run on a different clock than an ordinary car-accident lawsuit, and one missed deadline can end an otherwise strong case. Below is exactly how the deadline works under Colorado law — and the two traps that quietly destroy UIM claims even when the calendar looks safe.
The three timeline rules that govern every Colorado UIM claim
Colorado's UIM deadline lives in C.R.S. § 13-80-107.5. It sets three interlocking rules:
Baseline
You have three years from the date your claim accrues to file suit or demand arbitration against your own insurer.
Extension
If the underlying claim is preserved and you receive payment on it, you get two years from the payment date.
Safety net
"In no event" less than three years from accrual — whichever deadline lands later is the one that controls.
1.The 3-year baseline
The default rule is straightforward: a UIM action must be commenced, or arbitration demanded, within three years after the cause of action accrues C.R.S. § 13-80-107.5(1)(b). That mirrors Colorado's three-year statute of limitations for motor-vehicle injury claims C.R.S. § 13-80-101(1)(n).
"Accrual" usually — but not always — means the crash date
The clock doesn't technically start on the day of the collision. Under the statute, a UIM claim accrues when both the injury and its cause "are known or should have been known by the exercise of reasonable diligence." For the overwhelming majority of car accidents, that's the crash date, because you know that day that you were hurt and who caused it. But in unusual cases — a latent injury, a delayed diagnosis — accrual can be later. Don't gamble on that distinction; treat the crash date as your deadline unless a lawyer tells you otherwise.
2.The 2-year extension after payment
Because a UIM claim often only becomes necessary after you've settled with the at-fault driver and discovered their coverage falls short, Colorado gives you extra breathing room. If your underlying bodily-injury claim is preserved — by filing suit against the at-fault driver or by payment of the settlement or judgment within the three-year window — then your UIM claim stays timely if it's brought within two years after you actually received payment on that underlying claim.
This extension is what protects people whose settlement finalizes late in the game. It can push your real deadline well past the original three years — but only if you handle two things correctly.
Worked example — how the dates actually play out
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March 1, 2025 — Crash
Claim accrues. Baseline deadline is March 1, 2028 (3 years).
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February 2027 — Settlement paid
You settle the at-fault driver's BI claim and their insurer's check clears. The 2-year extension clock starts on the payment date.
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February 2029 — UIM deadline
Your UIM deadline is now ~February 2029 — later than the 3-year baseline, so the extension controls. Had payment landed after March 1, 2028 without suit being filed, you would have lost the extension.
3.The "in no event less than 3 years" floor
The statute closes with a protective clause: "In no event shall the insured have less than three years after the cause of action accrues" to file or demand arbitration. In plain terms — the two-year post-payment rule can only lengthen your deadline, never shorten it below three years from accrual. Whichever date falls later is your true deadline.
Two traps that quietly void UIM claims
Meeting the calendar deadline isn't enough. These are the mistakes we see end otherwise valid claims:
Trap 1 — A signed settlement is not "payment"
In Stoesz v. State Farm (2015 COA 86), the Colorado Court of Appeals ruled that a settlement agreement does not count as "payment" — the two-year extension only starts when money is actually delivered. In that case the settlement was signed before the deadline, but the check didn't arrive until after, and the claimant lost the extension. The safer move: if a payment might land close to the three-year mark, file suit against the at-fault driver to lock in the extension (the court noted this doesn't even require serving them).
Trap 2 — Settling without your own insurer's consent
Before you accept any offer from the at-fault driver's insurer, your UIM policy almost certainly requires you to notify your own carrier and get written consent. Settle without it, and you can forfeit your entire UIM claim — no matter how much time is left on the clock. You must also generally exhaust the at-fault driver's policy limits before UIM coverage kicks in.
The deadline is a ceiling — not a plan
Even when the statute of limitations is years away, your own policy contains notice provisions that can require you to report a UIM claim far sooner. Miss those, and you can waive your rights before the legal deadline is anywhere close. Insurers also fight UIM claims harder than most — it's their money, not a third party's — so the earlier the claim is built, the stronger it tends to be. Waiting almost never helps you and frequently helps the insurance company.
Not sure where your deadline actually falls?
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Malnar Injury Law · 6799 Bismark Rd, Ste. C, Colorado Springs, CO 80922
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Frequently asked questions
What is the statute of limitations for a UIM claim in Colorado?
Under C.R.S. § 13-80-107.5, you generally have three years from the date your claim accrues (typically the crash date) to file a UIM lawsuit or demand arbitration. That window can be extended to two years after you receive payment on the underlying bodily-injury claim, but never falls below three years from accrual.
Does the three-year deadline start on the accident date?
Usually. The statute technically starts the clock when both your injury and its cause are known or reasonably should have been known — which for most crashes is the collision date. In rare cases involving delayed or latent injuries, accrual may be later, but you should never assume that without legal advice.
Can I get more than three years to file a UIM claim?
Yes. If your underlying bodily-injury claim is preserved (by filing suit against the at-fault driver or by payment within the three-year window) and you receive payment, you have two years from that payment date. If that pushes past the three-year baseline, the later date controls.
Does a signed settlement count as "payment" for the two-year extension?
No. In Stoesz v. State Farm, a Colorado appeals court held that a settlement agreement is not "payment" — only the actual delivery of money starts the two-year extension. If a payment might arrive near your deadline, filing suit against the at-fault driver is the safer way to preserve the extension.
Do I have to tell my own insurer before settling with the at-fault driver?
In almost all cases, yes. UIM policies typically require you to notify your own carrier and obtain written consent before accepting a third-party settlement, and to exhaust the at-fault driver's policy limits first. Settling without consent can void your UIM claim entirely.
What happens if I miss the UIM deadline in Colorado?
If you file after the applicable deadline, your insurer can move to bar the claim, and courts will generally enforce the limit — leaving you unable to recover under your UIM coverage. Because policy notice provisions can be even shorter than the statute, it's best to act well before the legal deadline.
This article is for general information only and is not legal advice. Statutes and case law change, and every claim turns on its own facts — including how "accrual" and "payment" apply to your situation. Reading this page does not create an attorney-client relationship. For advice about your specific UIM deadline, speak with a licensed Colorado attorney. Primary source: Colorado Revised Statutes § 13-80-107.5.