Commentary and Analysis Regarding Colorado Law

Medical Payments Coverage in Colorado

In the last two newsletters (Are You Putting Yourself at Risk by Saving on Your Car Insurance – Part 1, Part 2) I wrote about how it is important to have enough liability coverage and uninsured/underinsured motorist coverage to protect you from the harm you may cause or the harm you may incur when involved in an auto collision. Both of these auto coverages protect you in the long run, but are almost never paid until medical treatment is complete. Even though you may have plenty of insurance to reimburse you for damages incurred, medical bills start coming almost immediately after the accident. If you don’t have health insurance this can create real problems.

Under Colorado law an automobile insurance company is required to offer up to $5,000 of medical payments coverage when you initially purchase your auto insurance policy. Medical payments coverage pays up to the limit of coverage for every person in your vehicle and it pays on an ongoing basis. There are no deductibles and no co-payments, and it pays regardless of who is at fault for the collision. Many carriers offer medical payments coverage up $25,000 per person and some will offer as high as $100,000 per person.

Submitted by Bradley A. Hall

Last quarter, I wrote about how you are able to protect yourself and your family members from injuries caused by uninsured and underinsured negligent drivers. But what if the shoe is on the other foot? What if you are now the defendant who ran the stop sign, looked down at the wrong time, or committed some other act which injured another driver, pedestrian, or even one of your own passengers? Do you have enough liability insurance to cover the injured parties’ damages? If not, your personal assets, including your ongoing income, may be at risk.

According to statistics compiled by the Center for Disease Control, the number one cause of death due to unintentional injury is motor vehicle accidents.  Likewise, motor vehicle accidents are the fourth leading for emergency room visits resulting from unintentional accidents.

Across the United States, 1 in 7 drivers are uninsured.  Colorado falls in line with that statistic.  In addition, Colorado requires only that a driver purchase $25,000 in liability coverage.  The odds are good in Colorado that, if you are involved in an auto accident, the at-fault driver is going to be uninsured or have the minimum limits of coverage.  Even a moderately serious accident can result in well in excess of $25,000 in damages.  An ambulance ride to the emergency room, follow-up care with your physician, lost wages and other expenses can add up quickly.