Law Updates

Dear Friends and Colleagues:

As many of you are aware, the Colorado Legislature failed to renew the no-fault automobile insurance law which had been in effect since 1974, and therefore Colorado reverts to what is called the "tort system" as of July 1, 2003. I have been asked numerous times; "What should a person do in Colorado anticipating the new tort system?"

My best suggestion to you at this time, is to ensure that you have substantial Bodily Injury and Uninsured Motorist limits. Anyone causing an accident will be liable for damages to an injured person for pain and suffering, past and future lost earnings, and medical and rehabilitation benefits. Based on my experience, it is not unusual for medical and rehabilitation benefits to exceed $25,000, $50,000 or even $100,000 in the case of a serious injury. Those bills would be recovered from the at-fault driver's bodily injury liability policy up to the applicable limits, and then may become the personal responsibility of the "at fault" driver.

Basically, under the tort system all automobile claims deal with the issue of "who was at fault" for the collision and subsequent injuries. No longer will an injured insured look to his or her own policy for automatic payment of no-fault benefits (such as medical, rehabilitation, wage loss), but will now have to bring a claim against the at-fault party for such damages. The Colorado Legislature has again mandated that every driver must carry a minimum of $25,000 in liability coverage; but as you can readily see, that amount is woefully inadequate either to protect the innocent injured person or the personal assets of the at-fault driver.

On the subject of Uninsured Motorist coverage, I would suggest you obtain the highest available limits for Uninsured/Underinsured motorist coverage offered by your carrier. This is not expensive coverage and may very well be the only realistic protection for you or family members injured by an uninsured/underinsured motorist. You may also want to consider "umbrella coverage". I would suggest you speak with your insurance company representative to identify the coverage package which best protects your personal assets, and best provides for family members who may be seriously injured in an automobile collision.

You may feel free to call me with any questions at 303.771.6080 or visit my website, www.rjdlaw.com, as I will from time to time be posting updated information as the new system evolves.

A Policy Brief:

Monitoring the Shift from No-Fault to a Tort Auto Insurance System in Colorado

Richard J. Dehncke
The Regency Plaza - DTC