LIABILITY
Liability
coverage protects you in the event that you are at fault in causing
a car accident and is the source of benefits when you've been injured
by someone else's negligence. The minimum limit of liability coverage
required by Colorado law is $25,000 per person with at least $50,000
for each accident if two or more people are injured and $15,000 for
property/vehicle damage. If you are injured in a car accident in which
someone else was negligent, you, or preferably your lawyer, may pursue
a claim for bodily injury as well as damage to your vehicle. The claim
is usually filed with the tortfeasor's (at-fault party) insurer prior
to filing a law suit against the tortfeasor. If the tortfeasor's insurer
does not dispute liability, they may offer to cover your damages up
to the limits of their liability coverage. It may also be possible to
pursue the tortfeasor's individual assets for damages in excess of their
insurance liability limits if you file suit against them and are successful
in securing a judgment.
Bodily
injury damages include compensation for medical bills, economic loss
like missed employment, loss of earning capacity, disability, physical
impairment, pain and suffering, loss of enjoyment of life, inconvenience,
emotional distress, etc. Colorado has imposed limitations on the amount
of non-economic damages like pain and suffering which you may recover.
Currently, the "tort cap" is set at $468,010.00. The judge
may double this amount if the damages are proven by clear and convincing
evidence but that is very uncommon. The cap may be different in the
case of wrongful death claims.
Many insurance
companies now use computer programs to calculate the value of these
damages. The resulting calculations are typically low and they usually
will not deviate from them. In addition, it is very common for the insurers
to attack the amount of medical bills incurred as excessive or otherwise
unreasonable. As a result, it is critical to have a competent attorney
prepared to file suit and take your case to jury trial, if necessary.
You must pursue your auto injury liability claim expeditiously since
there is a three year statute of limitation from the date of the accident.
UNINSURED
MOTORIST
(UM)
coverage is compulsory in Colorado unless rejected in writing. UM coverage
allows you to pursue damages through your own insurance company when
you are involved in an auto accident in which the person at fault was
uninsured. The minimum insurance limits and damages available are the
same as those listed under the liability section. UM coverage may also
be available when you are involved in a hit and run accident or when
the person at fault did not have enough liability insurance to cover
all of your damages, i.e., the party at fault was "under-insured."
UM benefits automatically kick in as under-insured motorist (UIM) coverage
when the tortfeasor's liability policy is insufficient to cover all
of the damages suffered in the accident. For example, if your damages
are in excess of $25,000 but the tortfeasor only had that much coverage,
you may then pursue your own insurance coverage for the residual amount
of your damages above and beyond the $25,000 available from the tortfeasor
up to the amount of your own UIM limit of coverage. However, it
is imperative to secure consent from your own insurance company prior
to settlement with the tortfeasor.
Although
it may be possible to pursue UIM benefits even if you do not secure
settlement in the full amount of the tortfeasor's policy, it is advisable
to seek settlement at or near the amount of that policy.
As of January 1, 2008 Colorado became a "stacking"
state whereby UIM benefits stack on top of the tortfeasor's liability
coverage. Therefore, in determining total available insurance coverage
you simply add the amount of UIM benefits to the amount of underlying
liability benefits. If the tortfeasor had liability coverage of $25,000
and there was $25,000 in UM coverage available, you would be able to
pursue a total insurance claim in the amount of $50,000.00.
Although it involves complex legal issues, you may be able to secure
additional UIM coverage through the "stacking" of UM coverages
or as a resident relative under the policy of another member of your
household. In the event there is still insufficient insurance coverage,
you may have no choice but to pursue a judgment against the tortfeasor
and execute against them for amounts in excess of available insurance
coverage. This scenario accentuates the need for competent legal representation.
UM
claims are subject to the same three year statute of limitation as under
liability, however, the period of time within which to pursue the claim
may be extended depending on when it was determined that the tortfeasor
was uninsured, whether suit has been filed against the tortfeasor or
a settlement received from the tortfeasor within the initial three year
period. For UIM claim, you must resolve your claim within two years
of settlement with the tortfeasor. In light of the circumstances, determining
the exact statute of limitation may involve complex legal issues which
exemplify the importance of seeking consultation with an experienced
car accident attorney like the those at The Law Offices of Mitchel S.
Drantch.
MEDICAL
PAYMENTS
Since 2009
Colorado law requires mandatory medical payments coverage with a minimum
limit of $5,000.00 per person per accident. "Med Pay" coverage
may be rejected in writing however rejection of this coverage would
be unwise because med pay insurers are prohibited from seeking reimbursement
of this benefit from the settlement received from the tortfeasor. Once
med pay benefits are exhausted or if they are rejected, under the tort
system your health insurance company or the doctors themselves may be
able to seek such reimbursement, potentially leaving the car accident
victim with nothing. Therefore, negotiating the liens or subrogation
interests of the healthcare providers or health insurance carriers is
also an integral part of proper legal representation for motor vehicle
injury claims.
In order
to properly protect yourself and loved ones, it is highly advisable
to raise your liability, uninsured motorist and med pay limits as much
as financially feasible and, in the event of a car accident, consult
with an experienced attorney like the professionals at The Law Offices
of Mitchel S. Drantch. Our attorneys can ensure you receive the best
medical treatment possible even if you do not have health insurance
or med pay, help you get medical bills paid and maximize your ultimate
recovery.
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