PIP

States generally use two types of auto insurance systems. The most common is a fault-based system, under which all vehicle owners must buy liability insurance. After a car accident, injured motorists, pedestrians, and cyclists file liability claims against the at-fault driver’s insurance policy.

The second system is only used by around 12 states. This “no-fault” system requires auto owners to buy personal injury protection (PIP) coverage in their vehicle insurance policy. After a minor crash, injured motorists first look to their insurer for injury compensation. 

Only injuries that meet a certain threshold (or other limited exceptions) enable accident victims to pursue a claim against the at-fault driver. Read on to learn more about PIP and a similar option that is available in Colorado.

Can Colorado Drivers Buy PIP Coverage?

Can Colorado Drivers Buy PIP Coverage?

Colorado does not use no-fault insurance, which means it has a fault-based system instead. Vehicle owners must buy at least the following liability coverage:

These numbers set the minimum policy limits vehicle owners must purchase. They can choose higher policy limits, but they cannot buy lower BIL or PDL limits. BIL coverage pays third parties, including other drivers, passengers, pedestrians, and cyclists, who are injured by a driver listed on the policy. PDL coverage pays property owners for damage caused by a covered driver.

PIP coverage is not available in Colorado because the state has a fault-based system. PIP is no-fault insurance because anyone injured in a crash, including the driver who caused it, can file a PIP claim with their insurer.

However, insurers offer a type of no-fault coverage in Colorado that covers some of your losses after a crash. Medical payments (Med Pay) coverage is optional in the state. If you purchase this insurance, you can file a claim with your auto insurer after suffering an injury in a crash.

Insurers cannot deny Med Pay benefits based on fault. Instead, it pays whether you caused the crash or not. It will even cover your medical expenses after a single-vehicle accident, like a rollover.

Med Pay will cover your medical expenses from a crash-related injury up to the policy limit. For example, if you buy $10,000 in Med Pay coverage, you can request reimbursement for up to $10,000 in medical costs. If you have health insurance, Med Pay will cover any out-of-pocket medical expenses, including copays or deductibles.

Differences Between Med Pay and PIP Coverage

Med Pay is similar, but not identical, to PIP coverage. One major difference is that Med Pay only covers medical costs. PIP, on the other hand, encompasses all economic losses, including the following:

Another difference is that no-fault states require PIP coverage. Med Pay is optional in fault-based states.

Finally, PIP coverage is supposed to replace liability claims in minor accidents. In fact, most no-fault states prohibit accident victims from pursuing claims against the at-fault driver unless they meet a threshold such as:

These thresholds differ by state. For example, New York allows claims against the at-fault driver for serious injuries, while Florida lifts the restriction when victims have significant, permanent injuries. There are other exceptions in some no-fault states, too.

In contrast, Med Pay coverage does not block victims from pursuing claims against at-fault drivers. More specifically, an injured person can file a claim with their insurer for Med Pay benefits and simultaneously file a liability claim with the at-fault driver’s insurer.

Additionally, due to its no-fault nature, Med Pay usually pays quicker than a liability claim. Thus, filing both Med Pay and liability claims will enable the victim to pay for their medical treatments and therapy while waiting to win or settle their liability claim.

States With PIP Coverage

Every state has its own auto insurance requirements. You must comply with the insurance laws of the state where you register your vehicles. Colorado’s requirements apply to you if you live in the state and have its license plates on your car.

You do not need to comply with a state’s insurance laws if you merely travel there. For example, two states near Colorado have no-fault insurance. But you do not need to buy PIP coverage while traveling to Utah or Kansas. You only need that coverage if you establish a primary residence in one of those states and register your vehicles there.

You will need PIP insurance in the following states after a move:

If you move to any of these areas, check with your insurance company and the local motor vehicle department to identify the insurance coverage required by law.

Each state’s insurance requirements will determine what you can recover after a crash and where you need to file your claim. Additionally, non-compliance with insurance laws can expose you to sanctions from the state and financial losses if you cause a crash. Contact a Lakewood car accident lawyer from Matos Personal Injury Lawyers at (720) 912 7274 to learn more about PIP, Med Pay, and your legal rights and options after an crash.