One of the most important concerns for people injured in auto accidents is receiving adequate compensation to cover all losses and injuries. While it may be possible to pursue the individual assets of the party responsible for the injury, more times than not, compensation will be recovered from an insurance policy.
State Abolishes No-Fault Auto Insurance
One of the most important concerns for people injured in auto accidents is receiving adequate compensation to cover all losses and injuries. While it may be possible to pursue the individual assets of the party responsible for the injury, more times than not, compensation will be recovered from an insurance policy.
Colorado recently changed its law concerning auto insurance coverage policies. Previously, Colorado used a no-fault system. This means that anyone injured in a car accident could receive personal injury protection (PIP) benefits under his or her own insurance policy. PIP covered the policyholder's medical expenses, regardless of who was at fault for the accident. This way, drivers or passengers injured in car accidents could immediately file claims for payment of medical bills under their own auto insurance policies without waiting for a determination of fault for the accident.
This, however, is not the law anymore.
What is the difference between no-fault and tort auto insurance?
Under recent changes, Colorado has switched from a no-fault jurisdiction to a tort jurisdiction. This means that drivers and passengers injured in car accidents typically cannot recover medical expenses from their own insurance policies if they were not at fault for the accidents. Rather, the injured are now required to seek coverage for their medical bills from the at-fault drivers' auto insurance companies.
This change in the law can have far-reaching consequences for those injured in car accidents. An injured person will face dealing with the other party's insurance company, trying to get it to pay medical bills. Even after fault is assessed, the at-fault driver's insurance company may not turn over the entire requested amount of compensation. It is more likely that the insurance company will continue to dispute the amount.
What happens if the at-fault driver does not have adequate insurance to cover the losses — or does not have any insurance at all?
In these cases, parties may be able to seek compensation from their own uninsured motorist/underinsured motorist (UM/UIM) coverage. But many drivers do not even know whether they have UM/UIM coverage. UM/UIM insurance is a type of coverage that can be added onto the auto insurance policy.
If you are involved in an accident with a driver who does not have car insurance or does not have enough insurance to cover the costs of your medical bills and property damage, your UM/UIM coverage is triggered and can help pay for those costs.
Why should you consult an attorney?
The new tort system for handling claims for property damage and medical bills makes it vital to have experienced legal representation. Under the old no-fault system, when you filed a claim with your own insurance company for coverage of medical expenses, it owed you a duty of good faith and fair dealing.
Now, under the new tort system, the at-fault driver's insurance company does not owe you the same duty.
The at-fault driver's insurance company will try to convince you to settle the claim, if you can even get it to admit fault. Without a full understanding of the law or the true value of your claim, how can you ensure that you are being offered a fair settlement?
Insurance companies are in business for themselves. They stay in business by limiting their liability and the amount they pay out on claims. You deserve to have someone fighting to protect your interests. An attorney can be an effective advocate in dealing with hostile insurance companies that use every legal means to limit their liability and protect their drivers.
Once you have hired an attorney, he or she will handle all communications and dealings with the at-fault driver's insurance company. You will not have to worry about tracking down the parties responsible for handling your claim or returning their phone calls. Your attorney should take care of all of this for you.
It is also your lawyer's job to determine all possible sources of financial recovery for your injuries and losses.
This may include other insurance policies, such as umbrella policies, homeowners insurance or the policies of relatives who live with you, as well as your own UM/UIM policy.
What about truck and motorcycle accidents?
Accidents involving trucks present many of the same issues described above, but commercial trucking outfits typically have broad, complex insurance coverage. Here, it is doubly important to work with an attorney; you can bet that the commercial trucking company's insurance agency is making use of experienced attorneys.
People who have been in motorcycle accidents also have a unique reason to work with attorneys.
Motorcyclists are often seen as being at fault — whether they were or not. Some people assume that motorcyclists, who are typically law-abiding citizens, are irresponsible. A vigilant attorney can help a motorcyclist protect his or her rights.
In sum, when you face the tort-based Colorado insurance system, it is wise to have an attorney on your side.
