Uber announced on its website that Colorado’s requirement for transportation network companies (TNCs) to carry $200,000 per person and $400,000 per incident in uninsured motorist coverage has increased rideshare insurance costs by 14% and contributed to a rise in lawsuits.
According to Uber’s official website, Colorado’s regulations impose significantly higher uninsured/underinsured motorist (UM/UIM) coverage requirements on TNCs than on any other driver category. The company notes that while most drivers—and even taxis—are not required to hold UM/UIM coverage, TNCs must maintain $200,000 per person and $400,000 per incident while on a trip. Uber argues that these mandates artificially inflate operating costs and have led to 14% of all rideshare insurance costs being concentrated in Colorado, creating an environment in which “a cottage industry of trial attorneys target TNCs.”
The Colorado General Assembly and the Colorado Revised Statutes (§ 40-10.1-604) require rideshare platforms such as Uber to provide UM/UIM coverage at minimum limits of $200,000 per person and $400,000 per accident whenever a driver is en route to or engaged in a trip. This coverage is mandated even when fault lies entirely with another driver—an obligation that private motorists can legally reject. Legal analyses published by RJT Law explain that these heightened statutory requirements expose TNCs to elevated insurance premiums and litigation costs compared to personal or taxi operators.
According to the American Tort Reform Association (ATRA), Colorado has one of the most active trial lawyer advertising markets in the United States, with more than 1.6 million legal service ads aired between 2017 and 2021 at a total cost exceeding $126 million. The ATRA report details that an additional $27 million was spent on radio and billboard advertising in the same period, bringing total expenditures to roughly $153 million. ATRA warns that such aggressive marketing creates “litigation hot zones” where high insurance limits—like Colorado’s UM/UIM requirements for TNCs—become targets for opportunistic lawsuits against deep-pocketed companies such as Uber.
According to its official website, Uber Technologies, Inc. operates a global mobility platform that connects riders, drivers, and delivery partners across more than 70 countries. Uber maintains detailed insurance policies for every market it serves, ensuring compliance with state-specific coverage mandates such as Colorado’s UM/UIM requirement. The company continues to advocate for balanced regulatory frameworks that protect consumers without encouraging excessive litigation or cost inflation for the rideshare industry.
