OVERVIEW
OF COLORADO AUTO INJURY LAW
Colorado
requires all owners and operators of motor vehicles to carry automobile
insurance including Liability and Uninsured Motorist coverage. "No-Fault" coverage was required until its sunset
repeal on June 30, 2003. Effective July 1, 2003 Colorado shifted to
tort law.
While
most auto insurers have reduced premiums since the change to tort law,
the loss of medical and rehabilitation benefits required under No-Fault
far outweighs the premium discount provided, if any. Now instead of
having $100,000.00 or more under your own policy to cover medical and
rehabilitation expense, as little as $25,000.00 may be all that is available
to cover your damages including such expenses. Your No-Fault insurer
was also prohibited from seeking reimbursement of such benefits from
the settlement or judgment paid by the negligent party (tortfeasor).
Under the tort system your health insurance company or the doctors themselves
may be able to seek such reimbursement, potentially leaving the car
accident victim with nothing. Therefore, in order to properly protect
yourself and loved ones, it is highly advisable to raise your liability
and uninsured motorist limits as much as financially feasible and, in
the event of a car accident, consult with an experienced attorney like
the professionals at The Law Offices of Mitchel S. Drantch. Our attorneys
can ensure you receive the best medical treatment possible even if you
do not have health insurance, help you get the bills paid and maximize
your ultimate recovery.
Liability
| Uninsured Motorist | No-Fault
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LIABILITY
Liability
coverage protects you in the event that you are at fault in causing
a car accident and is the source of benefits when you've been injured
by someone else's negligence. The minimum limit of liability coverage
required by Colorado law is $25,000 per person with at least $50,000
for each accident if two or more people are injured and $15,000 for
property/vehicle damage. If you are injured in a car accident in which
someone else was negligent, you, or preferably your lawyer, may pursue
a claim for bodily injury as well as damage to your vehicle. The claim
is usually filed with the tortfeasor's insurer prior to filing a law
suit against the tortfeasor. If the tortfeasor's insurer does not dispute
liability, they may offer to cover your damages up to the limits of
their liability coverage. It may also be possible to pursue the tortfeasor's
individual assets for damages in excess of their insurance liability
limits if you file suit against them and are successful in securing
a judgment.
Bodily
injury damages include compensation for medical bills, economic loss
like missed employment, loss of earning capacity, disability, physical
impairment, pain and suffering, loss of enjoyment of life, inconvenience,
emotional distress, etc. Colorado has imposed limitations on the amount
of non-economic damages like pain and suffering which you may recover.
Currently, the "tort cap" is set at $366,000.00. The cap is
actually lower for wrongful death claims.
Many insurance
companies now use computer programs to calculate the value of these
damages. The resulting calculations are typically low and they usually
will not deviate from them. In addition, it is very common for the insurers
to attack the amount of medical bills incurred as excessive or otherwise
unreasonable. As a result, it is critical to have a competent attorney
prepared to file suit and take your case to jury trial, if necessary.
You must pursue your auto injury liability claim expeditiously since
there is a three year statute of limitation from the date of the accident.
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UNINSURED
MOTORIST
(UM)
coverage is compulsory in Colorado unless rejected in writing. UM coverage
allows you to pursue damages through your own insurance company when
you are involved in an auto accident in which the person at fault was
uninsured. The minimum insurance limits and damages available are the
same as those listed under the liability section. UM coverage may also
be available when you are involved in a hit and run accident or when
the person at fault did not have enough liability insurance to cover
all of your damages, i.e., the party at fault was "under-insured."
UM is only available as under-insured motorist (UIM) coverage when your
own UM limits are greater than the liability limits of the tortfeasor,
however, as explained below, for insurance policies which renew after
January 1, 2008, the "offset" limitation does not apply .
For example, if your damages are in excess of $25,000 but the tortfeasor
only had that much coverage and no other assets to pursue, you may then
pursue your own insurance coverage for the residual amount of your damages
above and beyond the $25,000 available from the tortfeasor.
Although
it may be possible to pursue UIM benefits even if you do not secure
settlement in the full amount of the tortfeasor's policy, it is advisable
to seek settlment at or near the amount of that policy. It is also imperative
to secure consent from your own insurance company prior to settlement
with the tortfeasor. In determining your
eligibility to pursue a UIM claim you must subtract or offset (the offset
does not apply to policies which renewed after January 1, 2008) the
amount paid by the tortfeasor's insurance company from the amount of
available UM coverage in order to determine the amount your UIM claim.
Therefore, if the tortfeasor had liability coverage of $25,000 and there
was only $25,000 in UM coverage available, you would not be able to
pursue a UIM claim (For policies which renewed after January 1, 2008
you would be able to pursue a $25,000 UIM claim even if you were only
carrying $25,000 in UM coverage since the offset would not apply anymore).
If the tortfeasor had liability coverage of $25,000 and there was $100,000
in UM coverage available, you would then be able to pursue a UIM claim
for a total of $75,000 (For
policies which renewed after January 1, 2008 you would be able to
pursue the $25,000 from the tortfeasor and the full $100,000 in UM coverage).
Although it involves complex legal issues, you may be able to secure
additional UIM coverage through the "stacking" of UM coverages
or as a resident relative under the policy of another member of your
household.
UM/UIM
claims are subject to a three year statute of limitation, however, the
period of time within which to pursue the claim may be extended depending
on when it was determined that the tortfeasor was uninsured, whether
suit has been filed against the tortfeasor or a settlement received
from the tortfeasor within the initial three year period. As a result,
determining the exact statute of limitation may also involve complex
legal issues which exemplify the importance of seeking consultation
with an experienced car accident attorney like the those at The Law
Offices of Mitchel S. Drantch.
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NO-FAULT
No-fault
only applies to car accidents occurring prior to July 1, 2003. For accidents
occurring on or after July 1, 2003, medical expenses become a part of
the Liability claim as presented in the liability section. However,
No-Fault (PIP) benefits may be available for car accidents occurring
after the change of law in cases where PIP based insurance policies
were issued prior to the change in the law, but renewed after the change.
The change of law did not effect entitlement to no-fault benefits for
claims arising prior to July 1, 2003.
Under
No-Fault each person's own insurance company is required to cover their
medical expenses and certain other benefits regardless of who was at
fault in the auto accident. The minimum limits of coverage required
are $50,000 for medical expenses for up to five years from the date
of the car accident and $50,000 for rehabilitation expenses for up to
ten years from the date of the car accident. If the full medical benefit
is exhausted during the first five years, the insurer is required to
apply any remaining rehabilitation benefit towards medical expenses,
if requested by the insured. For the first year after the auto accident
No-Fault coverage also provides for one hundred percent of the first
$125 in lost wages, seventy percent of the next $125 in lost wages and
sixty percent of the remaining lost wages up to a total of $400 per
week as well as essential services up to $25 per day. Essential services
are those which the injured person would have performed had they not
been injured. Insurers will typically require a physician's note documenting
the need for essential services. A small mileage reimbursement may also
be available for doctor's appointments and other car accident related
driving expense. Medical and rehabilitation benefits provided by No-Fault
cover a broad spectrum of care including, but not limited to, traditional
medicine, physical therapy, chiropractic, dental, optometric, and even
emotional care, if necessary. In addition to a host of other expenses,
No-fault will also cover ambulance and prosthetic expenses as well as
non-medical remedial care such as occupational therapy.
Insurance
payments must be made on a thirty day cycle and are mandatory as long
as the care received is reasonable, necessary and related to the car
accident. No-Fault Insurers provide discounts for participation in Preferred
Provider Organizations (PPO), i.e., Sloans Lake Managed Care, Intracorp,
QMC3 or a host of others. Within the PPO a person generally loses their
ability to treat with the provider of their choice unless that provider
is a member of the PPO plan. The PPO option may also involve managed
care through which it may be necessary to secure pre-authorization for
care. The amount of care extended may be limited by the PPO even if
you believe care is still necessary. This is because PPO's typically
have a panel of physicians to review requested care and it may be denied
if the panel does not feel your care is reasonable, necessary or related
to the auto accident. Although the insurance company may attempt to
deny care even for those without a PPO plan, they may do so only upon
an independent medical exam in which an impartial provider selected
by the insurance division agrees that the requested care is not necessary.
For these reasons the PPO option was not worth the small discount provided
by your insurer. It is also another reason why it is important to consult
with an experienced lawyer. At The Law Offices of Mitchel S. Drantch
our attorneys will not only provide representation for your liability
or uninsured motorist claim but will also insure that you get the best
care possible.
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