Insurance Claim Rights in Colorado
Colorado uses a modified comparative fault system where you can recover only if you are less than 50% at fault. The state uniquely requires mandatory MedPay coverage of at least $5,000, ensuring immediate medical expense coverage regardless of fault. Colorado's mountainous terrain and winter conditions make adequate coverage essential.
25/50/15
Min. Liability
3 yrs
PI Deadline
3 yrs
PD Deadline
Yes
Diminished Value
Fault System
How Colorado's At-Fault (Tort) System Works
Colorado is an at-fault (tort) state. This means the driver who caused the accident is financially responsible for the other party's damages. After an accident, you file a claim against the at-fault driver's insurance company. If the claim is denied or undervalued, you have the right to file a lawsuit to recover your damages.
Deadlines
Statute of Limitations in Colorado
Personal Injury
3 Years
You have 3 years from the date of the accident to file a personal injury lawsuit in Colorado. Missing this deadline permanently bars your right to seek compensation for medical bills, lost wages, and pain and suffering.
Property Damage
3 Years
For property damage claims (vehicle repairs, total loss, personal property), Colorado allows 3 years to file a lawsuit. This includes diminished value claims if applicable. Report damage to your insurer as soon as possible: report to insurer within 30 days; some policies require sooner.
Coverage Requirements
Minimum Auto Insurance in Colorado
Colorado requires all drivers to carry at least 25/50/15 in liability coverage. These numbers represent the minimum bodily injury per person / bodily injury per accident / property damage limits in thousands of dollars. While these are the legal minimums, higher coverage is strongly recommended.
Bodily Injury / Person
$25,000
Maximum per injured person
Bodily Injury / Accident
$50,000
Maximum per accident total
Property Damage
$15,000
Maximum for property damage
Diminished Value
Diminished Value Claims in Colorado
Colorado Allows Diminished Value Claims
After an accident in Colorado, your vehicle may lose market value even after high-quality repairs — this is called "diminished value." Colorado allows you to file a diminished value claim against the at-fault driver's insurance to recover the difference between your vehicle's pre-accident and post-repair market value. The amount recoverable depends on the vehicle's age, mileage, damage severity, and repair quality.
Calculate your diminished valueKey Laws
Important Insurance Laws in Colorado
Colorado follows a modified comparative fault rule with a 50% bar — you cannot recover if you are 50% or more at fault (C.R.S. § 13-21-111).
Colorado requires mandatory medical payments (MedPay) coverage of at least $5,000.
Insurers must acknowledge claims within 15 working days and accept or deny within 60 days of receiving a completed proof of loss (3 CCR 702-5:5-1-14).
Resources
Colorado Department of Insurance
If you have a complaint about your insurance company or need help with a claim dispute in Colorado, contact the state Department of Insurance. They regulate insurance companies operating in Colorado and can assist with claim disputes, bad faith complaints, and coverage questions.
FAQ
Frequently Asked Questions About Colorado Insurance Claims
What is Colorado's MedPay requirement?
Colorado is one of the few states that requires medical payments (MedPay) coverage. Every auto policy must include at least $5,000 in MedPay, which pays for medical expenses regardless of who was at fault. You can purchase higher limits.
How does comparative fault work in Colorado?
Colorado uses a modified comparative fault rule. If you are 50% or more at fault, you cannot recover any damages. If you are 49% or less at fault, your recovery is reduced by your fault percentage. For example, being 30% at fault on a $50,000 claim means you receive $35,000.
Can I file a diminished value claim in Colorado?
Yes, Colorado allows diminished value claims against the at-fault party. You can seek compensation for the reduction in your vehicle's market value that results from having an accident on its history, even after quality repairs.
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