Colorado employs a tort-based system for auto insurance coverage, not a no-fault system. Because of this within the occasion of a automobile accident, drivers usually file claims with the at-fault driver’s insurance coverage firm to cowl bills like medical payments and automobile repairs. For instance, if Driver A is deemed answerable for a collision with Driver B, Driver B would search compensation from Driver A’s insurance coverage supplier.
This technique’s significance lies in its emphasis on establishing legal responsibility. It goals to carry negligent drivers accountable for the results of their actions, theoretically selling safer driving practices. Traditionally, Colorado has operated beneath this tort system, although particular legal guidelines and rules have developed. The state requires minimal legal responsibility protection, however drivers can buy extra safety. Understanding these nuances is essential for navigating the authorized and monetary ramifications of automobile accidents throughout the state.
