State auto insurance laws comprise a continuum from no-fault to tort reparation systems. Under Colorado’s previous no-fault system, medical and rehabilitative expenses and lost wages resulting from an automobile accident were paid by a driver's insurance company, regardless of who caused the accident. Under the state’s current tort system, injured individuals must seek financial restitution through the insurance claims settlement process and/or the legal system based on establishment of fault.
The change from a no-fault to a tort system came when the 2003 Colorado General Assembly allowed the 30-year-old no-fault legislation to lapse. In July 2004, CHI analyzed the shift to help Colorado policymakers and the public understand the changes that occurred and the implications for premiums and coverage, cost and accessibility of health care services for individuals seriously injured in an auto accident. With limited claims experience data available immediately following the shift in Colorado, CHI’s findings pointed to a number of issues and trends that should be monitored over time.
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