Colorado's At-Fault System
Unlike no-fault states, Colorado follows a traditional tort/at-fault system. The at-fault party's liability insurance covers the injured party's damages. You can file a claim directly against the other driver's insurer (third-party claim) or use your own coverage and let your insurer subrogate.
Insurance Company Obligations
Colorado's insurance regulations require insurers to:
- Acknowledge receipt of a claim within 15 working days
- Begin investigation within 15 working days
- Accept or deny the claim within 60 days of receiving proof of loss
- Pay accepted claims within 30 days
Failure to meet these timelines may constitute bad faith insurance practices under C.R.S. § 10-3-1115.
Types of Coverage
- Liability: Pays for the other party's damages when you're at fault (minimum 25/50/15 required)
- MedPay: Pays your medical bills regardless of fault (optional in Colorado)
- UM/UIM: Covers you when the other driver is uninsured or underinsured (optional but highly recommended)
- Collision/Comprehensive: Covers your vehicle damage (optional)