What Is the Difference Between No-Fault vs. At-Fault Insurance?
In Colorado, including Denver, the key difference between no-fault and at-fault insurance systems is liability assignment. Colorado operates under an at-fault insurance system. The driver who caused an accident is legally and financially responsible for paying for the other party’s damages, including vehicle repairs and medical expenses.
However, the victim has the burden of proving causation, fault, and damages before recovering compensation. Understanding the key differences between no-fault vs. at-fault insurance helps drivers protect their rights after a car accident.
This resource explains what drivers and accident victims need to understand about Colorado’s at-fault insurance system.
What Is At-Fault Insurance?
Colorado uses an at-fault insurance system, meaning the driver who caused the crash is financially responsible for the resulting damages. After an accident, injured victims file claims with the at-fault driver’s insurer or pursue a personal injury lawsuit.
To recover compensation, victims must prove the other driver was negligent. Colorado also follows a modified comparative negligence rule—if you’re less than 50% at fault, you can recover reduced damages. At 50% or more, you’re barred from recovery.
Colorado drivers must carry liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, plus $15,000 for property damage. This system allows victims to seek full compensation but requires them to prove fault.
What Is No-Fault Insurance?
Colorado repealed its no-fault insurance laws in 2003, but many states still use this system. Under no-fault rules, drivers must carry Personal Injury Protection (PIP) coverage. After an accident, injured drivers file claims with their own insurer, regardless of fault. PIP typically pays part of medical expenses and lost wages, but does not cover pain and suffering.
Some states allow liability claims against at-fault drivers only if victims suffer a “serious injury” or if their financial losses exceed PIP limits. This system aims to simplify smaller claims while limiting lawsuits.
What Do You Have to Prove in a Colorado Car Accident Claim?
The primary thing to remember about a car accident claim in Colorado is that you must prove the other driver caused the accident to recover damages.
Evidence used in car accident cases includes, but is not limited to:
- Police and crash reports
- Video from dashcams and nearby surveillance cameras
- Statements from the drivers and eyewitnesses
- Physical evidence from the accident scene
- Expert witness testimony
- Data recovered from the vehicle’s data recorders
- Photographs of the accident scene
- Medical records documenting injuries
The burden of proof in Colorado for civil cases is beyond a preponderance of the evidence. You must prove that it is more likely than not that the evidence proves the other driver caused the crash.
Another thing to know about car accident claims in Colorado is the types of damages you can receive.
What Types of Damages Can You Recover?
In an at-fault car accident claim, victims generally seek compensation for their economic and non-economic damages. Damages include:
- Medical bills
- Loss of enjoyment of life
- Pain and suffering
- Out-of-pocket expenses
- Lost wages
- Emotional distress and mental anguish
- Diminished quality of life
- Reduced earning capacity
- Scarring, disability, impairments, and disfigurement
The amount of a car accident settlement or court verdict depends on the facts of your case. Careful documentation of losses and injuries can increase the value of the claim.
What Should You Watch Out for With Insurance Companies?
Beware of insurance companies that offer quick settlements for car accident claims. The company may want you to accept the settlement before you fully understand the value of your claim or have consulted with an attorney. Before signing a settlement agreement, it is advisable to speak with an attorney.
Should You Consider Uninsured/Underinsured Motorist (UM/UIM) Coverage?
The minimum liability coverage for car insurance is $25,000 for bodily injury. A trip to the emergency room and follow-up care could exceed this amount, without considering other damages. You can sue the driver for damages, but they may not have sufficient assets to pay a judgment.
Uninsured and underinsured coverage helps protect you if you are involved in an accident with an uninsured driver or a driver with insufficient insurance coverage.
Get Help with a Denver Car Accident Claim
Dealing with insurance companies after a car accident in Denver can be frustrating. A Denver car accident lawyer fights to protect your rights and obtain the compensation you deserve. Call Zaner Law Personal Injury Lawyers at (720) 613-9706 for a free consultation to discuss a claim.
