Colorado Insurance Playbook
Understanding Colorado’s At-Fault Auto Insurance System
Colorado’s tort-based insurance framework decides who pays, how much, and when coverage really kicks in after a crash. Use this guide to translate the rules into concrete steps for preserving evidence, protecting coverage, and keeping your settlement strategy on track.
The first minutes after a collision are chaotic: checking on passengers, moving the car, and swapping information. As the adrenaline fades, the practical question hits: Who is going to cover the medical bills, repairs, and lost wages? In Colorado, the answer hinges on fault. Colorado follows an at-fault (tort) system, meaning the driver who caused the crash, along with their insurer, must compensate the people they injure.[1]
That structure puts a premium on quick documentation and an understanding of how negligence, minimum insurance limits, and optional coverages interact. The sections below break down the essentials so you can advocate effectively, whether you are preparing a demand or helping a client chart the next steps.
Proving negligence drives recovery
In a tort state, the injured party must prove that the other driver was negligent, for example, speeding, ignoring a signal, texting, or otherwise failing to use reasonable care, and that the breach caused the crash.[1] Build that story with contemporaneous evidence:
- Request the investigating officer’s report and note any citations or admissions captured in the narrative.[5]
- Secure witness statements and nearby surveillance footage before memories fade and video loops overwrite.
- Photograph vehicle damage, skid marks, and roadway conditions to anchor expert reconstructions.
Because the at-fault carrier pays, clear liability proof keeps the claim from devolving into a credibility contest and sets the stage for fair valuation.
Mandatory liability coverage is only the floor
Colorado requires every registered vehicle to carry liability insurance that meets the 25/50/15 minimums: $25,000 for one person’s bodily injury, $50,000 per accident, and $15,000 for property damage.[2][3] Those limits trail modern hospital bills, which is why intake teams should document all available coverage early (household policies, rental agreements, commercial policies, and umbrella layers).
Driving without insurance is a class 1 misdemeanor traffic offense that brings fines, license points, possible suspension, and community service.[2] An uninsured at-fault driver remains personally liable for damages, so plaintiffs may need to pursue assets or rely on their own first-party coverages to close the gap.
How comparative negligence shapes payouts
Colorado uses a modified comparative negligence rule. Fact finders assign fault percentages to each participant; your client’s award is reduced by their share of fault, and recovery is barred altogether at 50% or higher.[4] That makes evidence collection a defensive exercise as well; push back on inflated accusations with EDR data, scene measurements, and medical timelines that explain delayed symptom onset.
Claims workflow in an at-fault framework
The claims process starts before the tow truck arrives. Colorado law requires immediate reporting of injury crashes to the nearest police authority, even if officers do not respond to the scene in person.[5] Follow through with:
- Notifying the at-fault carrier promptly and providing the basics (accident date, location, parties, and policy numbers).
- Coordinating with your own insurer if you have MedPay, UM/UIM, or collision coverage so bills get paid while liability is sorted out.[6][7]
- Preserving physical evidence, including vehicle inspections, downloads of airbag modules, and retention of any onboard camera footage, prevents spoliation arguments.
Expect adjusters to challenge causation and treatment gaps, especially once more than a few weeks pass. Keep a running chronology of medical visits, out-of-pocket expenses, and wage loss to blunt those arguments.
Optional coverages that plug real-world gaps
Uninsured/Underinsured Motorist (UM/UIM)
Insurers must offer UM/UIM coverage in amounts up to the policyholder’s bodily injury limits, and the coverage steps in when the at-fault driver lacks insurance or carries too little.[6]Unless the policyholder rejects it in writing, the protection is built into most policies, which is vital in hit-and-run scenarios or when minimum limits are exhausted.
Medical Payments (MedPay)
Carriers must automatically include at least $5,000 of MedPay unless the insured opts out.[7]It pays reasonable accident-related medical bills regardless of fault and can satisfy deductibles before health insurance kicks in. Remind clients to submit hospital and ambulance invoices early so the statutorily required reserve does not go unused.
Collision and comprehensive
These optional coverages reimburse damage to your own vehicle (collision) and losses from fire, theft, vandalism, hail, or falling objects (comprehensive). They carry deductibles but can be the fastest path to repairs while subrogation plays out.
Deadlines, venues, and interest
Motor vehicle claims carry a three-year statute of limitations measured from accrual.[8]Track earlier deadlines if a government vehicle is involved or if wrongful death statutes apply. When damages fall below $7,500, Colorado’s small claims court offers a streamlined forum with concurrent jurisdiction, though defendants retain the right to remove the case to county court.[9]If you secure a judgment, expect 8% annual post-judgment interest unless a contract sets a different rate.[10]
Self-insurance and regulatory oversight
Owners of 25 or more vehicles can apply for self-insurance certificates by proving their ability to satisfy Colorado’s minimum coverage obligations.[3] The Division of Insurance regulates these programs, ensuring fleets maintain the same financial responsibility ordinary drivers achieve through policies. During intake, confirm whether a commercial defendant is self-insured, and claim handling and documentation requirements can differ from standard carrier workflows.
Action plan after a Colorado crash
- Run the Colorado settlement calculator to frame economic and non-economic damages before negotiations.
- Use the Personal Injury Types — Car Accidents hub for comparative negligence examples, evidence checklists, and negotiation tactics.
- Calendar statutory deadlines, CGIA notice requirements, and insurer reporting obligations so the claim never hinges on a missed date.
- Encourage clients to maintain a claim diary that tracks adjuster calls, treatment barriers, and expenses keeps the narrative organized when it is time to draft a demand package.