Should I Sue if the Other Driver’s Insurer Denies My Colorado Car Accident Claim?

 Posted on October 09, 2026 in Car Accidents

When another driver’s insurance denies your car accident claim, you may be worried that you won’t receive the compensation you deserve. Even after a denial, you still have options, up to and including a lawsuit.

A Denver, CO car accident lawyer can look at why your claim was denied in 2026 and help you decide what the most judicious route forward is.

Why Would an Insurance Company Deny a Car Accident Claim in Colorado?

Insurance companies decide whether to pay claims based on their own review of the evidence from the accident. This review can be incomplete or incorrect.

The denial letter should cite a clear reason. Common reasons for denial include:

• The insurer believes its driver wasn’t at fault, or that you were mostly at fault.
• The policy had lapsed or doesn’t cover the driver or vehicle involved.
• The insurer says your injuries came from something other than the accident.
• There was a long gap between the accident and your first medical visit.
• The insurer says there is not enough evidence to support your claim.

Some reasons can be addressed with more evidence. Other problems, such as a lack of coverage from the other driver, cannot. In these kinds of cases, though, you may still have recourse through your own insurance policy.

Can You Sue Another Driver’s Insurance Company for Denying Your Claim in Colorado?

In most Colorado car accident cases, you can’t sue the at-fault driver’s insurer directly. Your claim is against the driver who caused the accident. Their insurance company usually hires a lawyer to defend them and pays any settlement or judgment up to the policy limits.

Colorado insurance law bars insurers from unreasonably delaying or denying payment of benefits (C.R.S. § 10-3-1115). This protection covers first-party claimants, so it usually doesn’t give you a claim against the other driver’s insurer.

When Does It Make Sense to File a Lawsuit After a Denied Car Accident Claim?

A lawsuit may be worthwhile when there is clear evidence that the other driver was primarily at fault and your losses are significant. Medical bills, lost wages, and ongoing pain can add up after a serious accident. If the insurer won’t pay anything, a lawsuit may be the only way to recover fair compensation.

Filing a lawsuit doesn’t mean your case will go all the way to trial. Many personal injury cases settle after a lawsuit is filed. Filing can show the other driver’s insurance that you are serious about getting compensation, which sometimes motivates companies to approve claims with reasonable payouts.

If your injuries were minor and healed quickly, the cost and time of filing a suit may outweigh what you could recover. It’s also important to remember that a jury may not rule in your favor, even if it seems like the fault is clearly the other driver’s.

What Should You Do After a Colorado Car Accident Claim Is Denied?

Keep a copy of the denial letter and everything you’ve sent to the insurer. Keep track of everything they send you as well. Keep going to your medical appointments, and save your records and bills.

Don’t give a recorded statement or sign a release before getting legal advice. A signed release may end your right to bring a claim later, even if your injuries turn out to be worse than you thought.

How Long Do You Have to Sue After a Colorado Car Accident?

Under C.R.S. § 13-80-101(1)(n), you generally have three years from when you knew or should have known about the injury or damage and what caused it to sue over the injuries or property damage from the accident. A denial from an insurance company doesn’t postpone that deadline.

Claims involving a government vehicle, such as a city bus or a snowplow, may come with a much shorter notice deadline. If a public employee was driving, ask about that deadline early.

Call a Denver, CO Car Accident Lawyer Today

A denial from the other driver’s insurer isn’t the end of the road for your chances at compensation. Our Denver, CO personal injury attorneys can review your denial letter, explain your options, and file suit if your case supports it.

The Gold Law Firm has recovered over $100 million in verdicts and settlements for clients. To schedule a free consultation, call 303-694-4653.