New Legislation Could Cost Colorado Drivers

A new measure proposed by lawmakers could cost Coloradoans up to $200 more per year for car insurance. If it's passed, Colorado drivers will be required to buy $25,000 worth of coverage for medically necessary and accident-related health care expenses for bodily injury and $25,000 for rehabilitation, treatments, and occupational training following an accident. This new coverage will help to ensure that accident victims get the care that they need.

The reason for the additional coverage is to make sure that first responders, such as police and firefighters, and trauma centers are properly reimbursed. In 2003, Colorado switched from a no-fault state to a tort-based state. The result was that trauma personnel and first responders turned in a similar number of claims, but were reimbursed for less than in the past. Under no-fault, each driver's car insurance pays the necessary bills.

In a tort-based system, payment is more difficult, since accident victims often need to sue the at-fault drivers, and bills are often paid via lawsuits. First responders and trauma centers are often left waiting for payment to come from court cases, or from individual people who don't always pay willingly. It's leaving many emergency services underfunded.

Rates on the Rise

Car insurance experts agree that the new measure could raise car insurance rates by as much as $200 per year. Motorists are not happy about the increase, since many feel that it's unnecessary. Most drivers are covered by their own health insurance for the kind of coverage that the new law would require. Many Colorado motorists wonder why they should have to spend more money when their health insurance company will pay out for accident-related injuries and rehabilitation.

Some drivers also fear that the proposed measure could complicate their insurance claims. They wonder if they will need to file their claim with their car insurance company or their health care provider, or even both. Some worry that it might complicate the already tough-to-navigate insurance claims system. If the measure passes, it will be vital for all drivers to contact their car insurance company and their health care company and be sure that they understand how they will be covered in the event of an accident. There's enough to worry about in the wake of a car accident without adding insurance problems!

A Silver Lining

There is a potential good side to this situation: If car insurance companies pick up the tab for medically necessary and accident-related health care expenses for bodily injury and rehabilitation, treatments, and occupational training, health insurance companies may be able to lower their rates. After all, individuals will present less risk to the health insurers if $25,000 worth of auto-accident liability is transferred to car insurance companies. Hopefully Colorado residents will see a decline in their health care costs if the measure passes, which could result in more people being able to afford health insurance.

Even if you are required to pay more with this new measure, many drivers are paying even more than $200 too much for their car insurance. If you think your rates may be going up, compare rates here at carinsurancerates.com. By examining many different companies and plans, you could save enough money to offset the increase, and maybe even more than that! You can always fight back against rate hikes by finding the best deal.