• 30
  • November
    2011

Auto insurance is a topic that most people don't think too much about until they get into a car accident. Motorists in Colorado should be aware of the state's insurance requirements, and what benefits they are entitled to if they experience an accident.

In 2003 Colorado eliminated no-fault insurance, also known as personal injury protection or PIP. Instead, all policies are now required to offer consumers at least $5,000 in medical payment coverage, often referred to as med-pay. Med-pay must be included as part of every auto insurance policy unless a consumer specifically opts out of the coverage in writing.

The purpose of med-pay is to provide coverage for immediate medical costs after an accident related to injuries of driver and any passengers in the vehicle, regardless of fault. Examples of covered expenses include first responders, ambulance rides, and emergency room costs. Med-pay provides coverage for these services up to the limit set by the policy.

After a motor vehicle accident, a victim's medical bills may be paid through multiple sources including the victim's health insurance, Medicare and med-pay. This may result in insurance subrogation issues since payers will want to receive payment from any personal injury settlement. It is important to note that med-pay is not subject to subrogation, so victims should consider how the benefit is best utilized based on their unique circumstances.

A personal injury attorney experienced in coordinating benefits can help accident victims maximize their benefits and receive the compensation they deserve after an accident.

Source: Department of Regulatory Affairs, Division of Insurance, Medical Payment (Med-Pay) Coverage in Colorado