Colorado's Unique Auto Insurance System: Understanding The Fault-Based Approach

Colorado is an at-fault state, which means that the driver who caused a traffic accident is financially responsible for any expenses related to property damage or injuries sustained during the crash. In other words, the person who was at fault for causing the car accident is also responsible for any resulting harm. Colorado requires that each motor vehicle in operation on the state's roads be covered by liability insurance. The required minimum amounts of liability car insurance coverage in Colorado are: $25,000 for bodily injury or death of one person in an accident caused by the driver of the insured vehicle; $50,000 for total bodily injury or death liability in an accident caused by the driver; and $15,000 for property damage per accident caused by the driver.

Colorado's minimum insurance requirements

In Colorado, vehicle owners are required to maintain certain minimum amounts of car insurance coverage to operate a vehicle legally on the state's roads and highways. The state's car insurance system is typically based on liability, or who was at fault for the accident.

The minimum liability car insurance coverage in Colorado is:

• $25,000 for bodily injury or death of one person in an accident caused by the driver of the insured vehicle
• $50,000 for total bodily injury or death liability in an accident caused by the driver of the insured vehicle
• $15,000 for property damage per accident caused by the driver of the insured vehicle

This basic coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians injured or whose vehicles are damaged in a car accident, up to the coverage limits.

It's important to note that Colorado was a no-fault car insurance state until 2003. After a car accident in a no-fault state, a claimant must turn to their own personal injury protection coverage to pay for medical bills and other out-of-pocket losses, regardless of who caused the crash. However, Colorado drivers no longer need to worry about no-fault laws after an in-state accident.

While uninsured/underinsured motorist coverage (UIM) is not required in Colorado, all insurers in the state must provide this coverage unless it is waived in writing by the policyholder. Additionally, since 2009, Colorado has required auto insurers to offer drivers $5,000 in medical payment coverage, which drivers can opt out of.

The consequences of driving without insurance

Driving without insurance in Colorado is considered a class 1 misdemeanour traffic offence. The consequences of driving without insurance in Colorado are serious and can be costly. The state imposes stiff penalties for those who do not register and insure their vehicles.

Penalties and Fines for Uninsured Motorists in Colorado:

• A minimum fine of $500 for the first offence, increasing to a minimum of $1,000 for the second and subsequent offences.
• Four points on the offender's driver's license.
• Suspension of the driver's license until the driver provides proof of insurance. The suspension period increases with repeat offences, from an indefinite period for the first offence, to four months for the second, and eight months for the third and subsequent offences.
• A requirement to perform 40 hours of community service.
• Jail time of up to one year.

Other Issues to Consider:

• Drivers who receive 12 points against their driver's license within a 12-month period are subject to license suspension.
• If pulled over by a police officer and unable to provide proof of insurance, the officer can search for the driver's coverage in the insurance database. Even if appropriate insurance coverage is found, the driver may still be issued a ticket and required to appear in court for not having proof of insurance.
• If a vehicle is newly insured and the information has not been reported to the Division of Motor Vehicles, proof of coverage must be provided showing that insurance was active on the date the driver was charged with having no insurance. Until this proof is provided, the driver's license is suspended.
• To get back on the road after a conviction, the driver will need to obtain insurance coverage, pay a $95 license reinstatement fee, and maintain an SR-22 form for three years.

The process of determining fault in an accident

Determining fault after a car accident can be a tricky process. While the drivers involved may decide or admit fault at the scene, it is not advisable to admit fault as it may come back to haunt you if you go to court. Instead, it is important to take cell phone pictures of the accident scene, note the make and model of all the cars involved, document the location, time of day, and weather conditions, and obtain the names and phone numbers of those involved, including witnesses.

The police report is another important factor in determining fault. When the police arrive at the scene, they will first assess if anyone is injured and call for medical help if needed. They will then assess the scene, noting the damage to all vehicles and their final resting positions, as well as looking for any special circumstances that may have caused the accident, such as cell phone use, speeding, or driving under the influence. The police will also talk to any witnesses and make a diagram of the scene.

After the accident, it is important to contact your insurance company and inform them of the basics of the accident, including the location, and ask them about the next steps in filing a claim. It is not a good idea to admit fault to your insurance company, but you should provide them with the facts of what happened from your point of view. You should also submit any evidence you have gathered, such as pictures of the accident scene and contact information for witnesses.

The insurance companies involved will then review the facts relating to the accident and determine who was at fault according to state laws. They will look at factors such as vehicle damage, weather conditions, physical evidence, and the details of the police report. If the other driver is at fault, your insurer will seek restitution from their insurer.

If the insurance companies cannot agree on fault, the dispute can be resolved through arbitration, or it may end up in small claims court or a jury trial. In most cases, however, car accident cases are settled before going to trial.

The benefits of consulting a lawyer after an accident

Colorado requires vehicle owners to have liability insurance. This means that the insured is covered for bodily injury to another person or property damage to another's vehicle or property when they are at fault for an accident. The state has set minimum coverage requirements, but higher coverage can be purchased.

Now, here are the benefits of consulting a lawyer after an accident:

Expert Legal Knowledge

Car accident lawyers have extensive knowledge and experience in tort law and negligence theory. They can advise you on the best course of action for your situation and help you navigate the complex legal process.

Evidence Gathering and Investigation

Lawyers can help gather crucial evidence such as police reports, witness statements, photographs, and surveillance footage to establish fault and strengthen your claim. They may also call upon outside experts to reconstruct the accident scene and establish liability.

Handling Administrative Tasks and Deadlines

An attorney can help manage your case by handling administrative tasks, meeting deadlines, and responding to insurance companies. They are well-versed in the statute of limitations and other relevant laws, ensuring your claim is filed within the required time frame.

Negotiating a Fair Settlement

A lawyer can advocate for your best interests and negotiate with insurance companies to ensure you receive maximum compensation. They can review settlement offers and protect you from insurance company tactics that may downplay the extent of your injuries or property damage.

No Upfront Costs

Most car accident lawyers work on a contingency basis, which means they only get paid if they successfully recover compensation for you. This eliminates the financial burden of upfront legal fees and motivates them to work diligently on your behalf.

Peace of Mind and Emotional Support

Consulting a lawyer after an accident can provide you with peace of mind and emotional support during a stressful time. They will act as your advocate, allowing you to focus on your recovery while they handle the legal aspects of your case.

The difference between a fault and no-fault state

In an at-fault state, a driver who causes a car accident is responsible for compensating the other party or parties for their losses. The at-fault driver's insurance will pay for the other driver's vehicle damage and medical expenses. The at-fault driver may also have to pay out of pocket if the insurance coverage is not sufficient.

In a no-fault state, each driver's insurance company will pay for their own insured's medical expenses, regardless of who caused the collision. The at-fault driver is still responsible for the other driver's car repairs and medical payments if the injury amount surpasses the state-regulated threshold. No-fault states generally do not allow injured parties to sue for non-economic damage unless the injury meets the state's definition of a severe injury.

Colorado is an at-fault state. The minimum insurance coverage in Colorado is $25,000 per person for bodily injury, $50,000 total per accident for bodily injury, and $15,000 for property damage.

Frequently asked questions