What Is PIP Insurance in Colorado?

It is important to understand the automobile insurance laws in your state, as they determine your rights after a car accident. Colorado is a fault state, not a no-fault state. This means that the first-party form of insurance known as personal injury protection, or PIP, coverage is not a legal requirement.

What Is PIP Insurance?

Personal injury protection insurance pays for the policyholder’s own bills and losses after an automobile accident, regardless of who is at fault for the crash. It can cover:

• Past and future necessary medical bills for you and your passengers
• Rehabilitation and therapy costs
• Lost wages and future earning capacity
• The cost of household services you can no longer perform
• Funeral and burial expenses

These insurance benefits are available without the claimant having to prove that someone else is at fault for the car accident.

Is PIP Insurance Required in Colorado?

PIP insurance is a legal requirement in states that use no-fault insurance laws. Under these systems, drivers and injured parties seek medical bill reimbursement from their own car insurance companies, regardless of fault; suing another driver is not an option except in certain circumstances. PIP insurance pays for these first-party claims in no-fault states.

Prior to 2003, Colorado was a no-fault state that required PIP insurance coverage. Today, however, it has changed to a fault-based system. PIP insurance is no longer legally required in the State of Colorado. However, a driver can choose to purchase this optional type of car insurance (now known as Medical Payment or Med Pay insurance) as a safeguard against personal liability for the damages caused by an auto accident.

Having optional Med Pay insurance on your policy can pay for certain types of expenses without regard to fault after a motor vehicle accident. This can include your medical costs and lost wages. You may also wish to purchase collision, comprehensive, or uninsured and underinsured motorist insurance to protect yourself further from financial liability.

Colorado Car Insurance Minimums

Every state has its own automobile insurance requirements for motor vehicle drivers. Currently, the minimum required amounts of automobile insurance in Colorado are:

• Bodily injury or death liability coverage for one person: $25,000
• Bodily injury or death liability coverage for one or more persons (per accident): $50,000
• Property damage liability coverage per accident: $15,000

If you are a resident of the State of Colorado, you are legally required to carry the correct amounts of car insurance coverage. Otherwise, you could face a fine and other legal repercussions.

How to Seek Financial Compensation After an Auto Accident in Colorado

If you get involved in an automobile accident in Colorado, you can seek insurance coverage from the at-fault driver or party. However, must prove that someone else is at fault to receive benefits from that party’s insurance provider. You must establish fault using clear and convincing evidence, such as a police report, photographs and videos, eyewitness statements, and subject-matter experts.

You must negotiate with the other driver’s car insurance company to achieve fair financial benefits for your losses. If you have Med Pay insurance, your own insurer can help cover your losses if the other driver does not have enough. If you need assistance proving fault or negotiating with insurance companies during a car accident claim, contact a Denver auto accident lawyer who can represent you and fight for fair financial compensation on your behalf.a