Colorado Auto Insurance Coverage

For 29 years Colorado enjoyed one of the most efficient and consumer friendly automobile insurance systems, one that automatically paid the key benefits for health care, rehabilitation, home-care and income loss without the need for the involvement of lawyers, or the courts.

In 2003, the state law was changed to a pure tort system. In contrast to the old "no-fault" system, the new "fault" or "tort-based" system requires the insurance company of the driver who is at fault for the accident to pay the damages arising out of the accident, including paying the victim's medical expenses, loss of wages, and pain and suffering. There is no threshold. Everyone involved in the accident can sue no matter how trivial the damages. In cases of mixed liability we could see shared damages, and in litigated cases, medical expenses can be held up for years, as our court system is hampered by drastic budget cuts.

The new system differs from the "no-fault" system in that drivers no longer have to purchase extra Personal Injury Protection coverage (commonly referred to as "PIP" coverage) from their own auto insurance company. The old system required drivers to purchase this "PIP" coverage, the new system makes medical payments coverage optional. Medical bills can still be paid under each driver's medical payments coverage (which pays for the medical expenses of the injured person regardless of who is at fault), or possibly under each driver's health insurance coverage. The difference under the new system is that if the driver who is not at fault has to rely on this coverage, those insurers have a right to seek reimbursement from the at-fault driver. Theoretically, a driver under the new system is not prohibited from seeking medical treatment from alternate providers, such as chiropractic, acupuncture, and massage therapy. Realistically, a driver is restricted by the terms of his or her own health insurance or medical payments coverage.

Tips:

1. Review your auto insurance policy and take an inventory of your coverage. Liability coverage is still mandated under the new law:
   
   •• Bodily injury liability coverage: mandatory: $25,000 per person and $50,000 per accident in Colorado.Property liability coverage: mandatory: $15,000 in Colorado.
   •• Collision coverage: optional in Colorado.
   •• Comprehensive coverage: optional in Colorado.
   •• Uninsured motorist coverage: optional in Colorado.
   •• Medical payments coverage: optional in Colorado.
   
   
2. There are numerous research links that are now coming on line, although most of these are driven more by the motive of the web provider, than by pure legal analysis. Most lawyers are recommending buying the highest possible bodily injury liability coverage and uninsured motorist coverage that you can afford. You should purchase Medical Payments Coverage as high as makes economic sense to you. Your insurance agent can best explain to you the cost savings by the total elimination of no-fault coverage and whatever increases you choose in bodily injury liability and uninsured motorist coverages and the addition of medical payments coverage. If you have an automobile injury claim pending, it will not be affected by this change.

Uninsured Motorist Insurance
"Uninsured Motorist" insurance protects you by allowing you to make a claim against your own insurance carrier if you are injured as a result of the negligence of a driver who had no "Liability" insurance. "Uninsured Motorist" coverage also provides protection if you are the victim of a "hit-and-run" accident. A close cousin to "Uninsured Motorist" coverage is "Underinsured Motorist" coverage. Your insurance carrier is required to offer you the opportunity to purchase "Underinsured Motorist" coverage up to the limits of the amount of the "Liability" coverage that you have purchased.

If you are seriously injured in an auto accident, with resulting high medical expenses, and the person who caused the accident had "Liability" limits lower than your "Underinsured Motorist" limits, you are entitled to make a claim against your own "Underinsured Motorist" coverage for the difference between that person's "Liability" limits and your "Underinsured Motorist" limits. "Underinsured Motorist" coverage is not required by law, however, given the high cost of medical expenses that can arise after only a moderately severe auto accident, it is recommended that you purchase it.

If you have questions about auto insurance coverage, and you wish to discuss your matter with an experienced attorney, please call 1-866-701-7292.