No Fault vs Tort
Colorado has Changed from a No Fault to a Tort System
No Fault Benefits were part of every car insurance policy issued or renewed in the State of Colorado before July 1, 2003. This meant that if you were injured in an automobile accident, the insurer of the car you were in was responsible for paying your medical and rehabilitation bills, wage loss, and essential services. This was true even if the other person was at fault and the person driving the car you were in did absolutely nothing wrong.
Policies issued or renewed after July 1, 2003, do not provide No Fault coverage and a “Tort” system governs. This means that your health insurance will be responsible for paying your medical bills in the event you are injured in an accident, unless you have chosen to purchase med pay coverage under your auto policy.
Regardless of whether you have health insurance or med pay coverage, a claim can be made against the other driver for medical and rehabilitation expenses, wage loss, and essential services, but only where the other driver was at fault. However, in cases where your medical and rehabilitation expenses have been paid by your health insurance, it is likely that your health carrier will want to be reimbursed out of your recovery from the other driver based upon a subrogation clause in the policy.
Frequently, an attorney will be able to negotiate a reduced payment to your insurer on its subrogation claim. For policies issued or renewed on or after January 1, 2009, you will have med pay coverage (unless you signed a written waiver) and your auto carrier will have no subrogation rights in your recovery.
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