Colorado employs a tort-based system for auto insurance, not a no-fault system. This means that in the event of a car accident, drivers typically file claims with the at-fault driver’s insurance company to cover expenses like medical bills and vehicle repairs. For example, if Driver A is deemed responsible for a collision with Driver B, Driver B would seek compensation from Driver A’s insurance provider.
This system’s significance lies in its emphasis on establishing liability. It aims to hold negligent drivers accountable for the consequences of their actions, theoretically promoting safer driving practices. Historically, Colorado has operated under this tort system, though specific laws and regulations have evolved. The state requires minimum liability coverage, but drivers can purchase additional protection. Understanding these nuances is crucial for navigating the legal and financial ramifications of car accidents within the state.
