UNINSURED/UNDERINSURED DRIVER ACCIDENTS

Colorado changed the insurance laws regarding personal injury protection in 2003. The information below describes in detail the changes to the laws and how it affects you the consumer. Click on one of the links below for more information on each of the topics.

Uninsured Motorist Coverage

• When the new law went into effect                                                                                  
• Personal Injury Protection (PIP)
• What happens under the new system
• What is Med Pay
• No fault coverage
• Renewing your policy
• Uninsured/Underinsured Motorist Coverage
• Out of Pocket Expenses
• Stacking Coverage

The Underinsured Colorado Tort Law

When the new law goes into effect:
Effective July 1, 2003, Colorado converted from a no-fault auto insurance system to a tort system. Auto insurance policies contain several components. Personal Injury Protection, or “PIP”, is coverage provided by the no-fault law that was repealed, and is no longer required after July 1, 2003. PIP pays for a person’s injuries sustained in an accident, regardless of who was at fault (hence the term “no-fault”). This was one of the more expensive portions of an auto insurance policy, and it was claimed that its elimination would result in lower overall premiums for most motorists.

Personal Injury Protection:
Since PIP is no longer required, most insurance companies raised their premiums on two other coverages contained in their policies: bodily injury (“BI”) liability and uninsured/underinsured motorist (“UM/UIM”) coverage. This increased coverage is necessary because where PIP policies pay for the cost of medical treatment for most injuries sustained in an auto accident, many claims for medical treatment under tort policies will eventually be paid only when the BI or UM/UIM claim is settled.

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