Is Colorado a No-Fault State for Car Insurance?

One common question drivers ask is whether Colorado operates under a no-fault or fault-based insurance system, as this distinction significantly impacts how to handle car accident claims. Whether you’re filing a claim, dealing with insurance adjusters, or considering a lawsuit, knowing how these laws work ensures you can safeguard your financial and legal interests. Here’s all you need to know:

Colorado’s Transition to a Fault-Based Insurance System

In 2003, Colorado transitioned from a no-fault insurance system to a fault-based system. Under the previous no-fault system, drivers would claim damages from their own insurance companies, regardless of who caused the accident. 

What Does “Fault-Based” Mean?

A “fault-based” system means the driver responsible for causing an accident is liable for damages. Victims can seek compensation through the at-fault driver’s insurance or file a personal injury lawsuit to recover costs such as medical bills, property damage, and other losses.

This shift makes it necessary to prove fault and build a strong, evidence-backed case that establishes liability. Working with a knowledgeable attorney, who can investigate your case and create a tailored legal strategy, will make this process more manageable.

Although a fault-based system allows you to seek compensation from the at-fault party, the importance of having insurance cannot be overstated. It protects you financially when the at-fault party lacks adequate coverage or disputes liability and ensures compliance with state laws.

Mandatory Insurance Requirements in Colorado

In Colorado, drivers must carry minimum liability insurance to ensure financial responsibility in the event of an accident. Failing to meet these requirements can result in fines, license suspension, and other penalties. The state mandates the following minimum coverages:

Minimum Insurance Coverage in Colorado:

• $25,000 for bodily injury per person.
• $50,000 for bodily injury per accident.
• $15,000 for property damage.

Although these minimums provide a safety net, they may not fully cover damages in more severe accidents. Investing in higher coverage limits or additional policies (like uninsured/underinsured motorist coverage) offers greater protection.

How Fault is Determined in Colorado Accidents

To determine fault after a car accident in Colorado, your lawyer will carefully analyze the available evidence (like police reports, witness statements, medical records, photos, or surveillance footage) to establish who was responsible.

A Denver car accident lawyer from Boesen Law can help you investigate your case, gather compelling evidence, and build a solid case to enhance your chances of securing fair compensation. Your lawyer will also handle negotiations with insurers or fight for your rights in court, if necessary.

Modified Comparative Negligence Rule

Under Colorado’s comparative negligence rule, victims can still recover damages even if they’re partially at fault. However, the compensation will be reduced by their percentage of fault.

For example, if you were 30% at fault for an accident and suffered $10,000 in damages, you would recover $7,000. At Boesen Law, we’re committed to presenting the strongest possible case to minimize fault attribution and maximize your compensation.

What to Do If You’re Uninsured or Underinsured in Colorado

Driving without insurance in Colorado has both financial and legal consequences. Under C.R.S. § 42-4-1409, driving without insurance is classified as a class 1 misdemeanor traffic offense. Penalties include a minimum fine of $500, points added to the driver’s license, and potential license suspension. Subsequent offenses can also result in jail time.

Additionally, being uninsured leaves drivers vulnerable to substantial out-of-pocket expenses in the event of an accident. Without insurance, drivers are personally liable for damages they cause, including property repairs, medical bills, and legal fees.

Colorado law mandates that insurers offer uninsured/underinsured motorist (UM/UIM) coverage, which protects insured drivers from damages caused by at-fault drivers who lack adequate insurance. While UM/UIM coverage is optional, declining it requires a written rejection from the policyholder. 

The Role of Insurance Companies in Colorado Car Accident Claims

When handling a car accident claim, insurance companies will assess evidence, police reports, and medical records to determine liability and damages. However, their goal often is to minimize payouts and protect their bottom line.

To do this, insurance companies use tactics like disputing fault, downplaying injuries, or offering lowball settlements. When handling insurers, a personal injury lawyer can make all the difference. At Boesen Law, for example, we use negotiation techniques built after decades of experience to ensure a fair settlement.

Does Insurance Cover the Car or the Driver in Colorado?

In Colorado, liability insurance typically covers the driver, not the vehicle. However, coverage nuances depend on the specific terms of the policy.

Statute of Limitations for Filing a Claim in Colorado

Colorado law sets strict deadlines for filing car accident-related claims. While C.R.S. § 13-80-102 establishes a two-year deadline for personal injury claims, motor vehicle accidents and property damage claims have a three-year statute of limitations, as per C.R.S. § 13-80-101.

Failing to file within this timeframe means losing your right to compensation, so consult an attorney early. This ensures compliance with these deadlines and allows for thorough case preparation.

How Boesen Law Can Help You Navigate Colorado’s Insurance Laws

After a car accident in Colorado, don’t navigate the legal landscape alone. As shown in our case results, Boesen Law has the expertise to guide you through every step. We offer:

• Expertise in Colorado insurance laws: Our attorneys possess in-depth knowledge of the state’s insurance laws, including mandatory requirements, handling fault-based claims, and maximizing available benefits.
• Proven track record: We’ve successfully secured millions for clients across Colorado, ensuring they and their families recover the compensation they deserve to move forward.
• No fees unless we win: Our team is dedicated to your success, so we don’t get paid unless you do.

Boesen Law is dedicated to making the legal process as seamless as possible: we’re here to guide you through every step and fight relentlessly for your rights. 

Contact us for a free consultation to learn how we can help. We’re available 24/7 to answer your questions!