| |
Colorado Auto Insurance Transition from No-Fault to Tort System (At-Fault)
Personal Injury Protection (PIP) coverage, which was created for no-fault insurance, is no longer available for new or renewing Colorado auto policies, as of July 1, 2003. This change affects your current insurance protection and you should review your policy by asking these questions:
- Q. What is "no-fault" auto insurance?
- A. No-fault insurance, also known as PIP or Personal Injury Protection, provides coverage for certain medical and rehabilitation expenses from injuries sustained in an automobile accident. It pays benefits for injuries whether or not the insured person is negligent or "at-fault". (Property damage is the responsibility of the at-fault party.) The no-fault law expires on July 1, 2003. All policies with an effective date on or after July 1 will be issued under a "tort" insurance law.
- Q. What is "Tort System" auto insurance?
- A. A "tort" is a civil wrong, but not a crime. In auto insurance, a tort system means that a determination of fault in an automobile accident is made. The party at fault or his or her insurance company pays medical and rehabilitation expenses to the injured party, as well as property damage. An injured party may also sue for other losses including lost wages and pain and suffering.
- Q. Do I have enough Personal Injury and Property Damage Liability coverage to protect my assets once my insurance has paid its full amount?
- A. The minimum amount of liability insurance required by Colorado Law is as follows:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury and
- $15,000 per accident for property damage.
Additional amounts are available and generally recommend you should speak with your agent about your particular circumstances to ensure that you have enough insurance to protect your assets in the event you are sued for damages. Under the new law, your bodily injury liability coverage will cover those same expenses if you are at fault.
- Q. Will I be able to purchase coverage for medical expenses under a tort system?
- A. Yes. Most if not all, auto insurance companies will offer limited "medical payments coverage" to their policy holders. This provides coverage for medical bills incurred by you and your immediate family if you are at fault and injured in an auto accident. Check with your agent about the availability of medical payments coverage.
- Q. What happens if I am at Fault in an accident, and my medical expenses exceed the limits of my medical payments coverage?
- A. Under a tort system, it is assumed that the negligent party is responsible for damages. Either you or your health insurance will pay for your medical expenses that exceed the
limits on any medical payments coverage under your auto insurance policy. It is strongly encouraged for you to review your current health insurance coverage to determine your exact benefit as they relate to auto.
|
|
|
