Colorado Supreme Court Upholds Uninsured Motorist Rule in Progressive Case

The Colorado Supreme Court ruled against Progressive on June 1, 2026, upholding a two-decade-old rule that forces auto insurers to raise their liability defenses early or lose the right to fight an uninsured motorist claim. The decision in Progressive Direct Insurance Co. v. Ortiz left a jury award of more than $216,000 against the carrier intact and reaffirmed the 2004 State Farm v. Brekke precedent that shields drivers filing UM claims.

What the Court Decided

The justices declined to overrule Brekke, the 2004 case that governs how an uninsured motorist insurer enters a dispute over who caused a wreck. Progressive had asked the court to scrap or narrow that precedent, arguing it unfairly limits when carriers can contest fault. The court found the rule "neither originally wrong nor outdated," according to the opinion summarized by Insurance Business America.

The ruling added one clarification that carriers had wanted resolved. A UM insurer must plead its legitimate liability defenses specifically and as soon as it reasonably can, the court held. The heightened particularity standard under Colorado Rule of Civil Procedure 9(b) applies only when the insurer alleges fraud or mistake, not for ordinary fault disputes.

The Crash Behind the Case

Andrew Ortiz, insured by Progressive, was turning left into a parking lot when his car collided with one driven by Tania Granados Camacho. Camacho carried no insurance, held only a learner's permit, and had no licensed adult in the car, according to court records. Ortiz filed a claim under his own uninsured motorist coverage, and Progressive denied it after deciding he was more than 50% at fault.

Camacho never responded to the lawsuit, so the trial court entered a default that settled her liability. About 10 months later, after that default and the close of discovery, Progressive raised for the first time its intent to contest fault at the damages hearing. That late move triggered the Brekke problem the Supreme Court just reinforced, because the carrier had sat on a boilerplate answer instead of pleading a specific defense early.

What This Means for Colorado Drivers

The decision strengthens the hand of any Colorado driver whose insurer denies a UM claim on thin grounds. When the at-fault driver is uninsured, your own carrier effectively steps into the shoes of that driver to argue fault, and this ruling says it must show its cards early. Insurers can no longer stay quiet, watch the case develop, and then spring a fault argument late in the process to cut a payout.

Uninsured motorist coverage matters more in Colorado than almost anywhere else. The state posts the highest underinsured-driver rate in the country at 49.7%, and an estimated 19.7% of Colorado drivers carry no insurance at all, based on Insurance Research Council and Insurance Information Institute figures. If you want to understand how this coverage works before you ever file a claim, read our full guide to uninsured and underinsured motorist coverage.

Why Colorado Drivers Carry So Much Risk

Nationally, 15.4% of drivers, more than one in seven, were uninsured in 2023, the Insurance Research Council reported. Add underinsured motorists and the combined figure climbs to 33.4%, meaning one in three drivers cannot fully cover the damage they cause. Colorado sits at the extreme end of that underinsured problem, which makes a driver's own UM and UIM limits the last line of financial defense after a serious crash.

Colorado law reflects that risk. Under CRS 10-4-609, insurers must offer UM and UIM coverage equal to your bodily injury liability limits, and you can only decline or reduce it with a signed written waiver. The state minimum UM/UIM limit runs $25,000 per person and $50,000 per accident, which rarely covers hospital bills from a highway collision. Drivers weighing where they stand can compare local pricing on our Colorado car insurance page, and see how the state ranks nationally in our breakdown of states with the most uninsured drivers.

What You Should Do Now

Looking Ahead

The ruling closes the door on carrier efforts to soften Brekke in Colorado, so expect insurers to file more detailed liability defenses at the outset of UM disputes rather than risk a bad-faith verdict like the one Progressive absorbed. Consumer attorneys are likely to cite Ortiz whenever an insurer raises a late fault argument. With one in three U.S. drivers now uninsured or underinsured, the pressure on UM coverage will keep building, a trend we track in our report on how many American drivers skip insurance.

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