# Colorado Dropping No-Fault Insurance 

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Colorado has enacted legislation that will end its no-fault system for automobile injury compensation.

Effective July 1, a tort system will go into effect where injured parties have an automatic right to sue for damages. The measure that was signed into law on May 2 by Republican Gov. Bill Owens (H.B. 1188) eliminates a no-fault system that insurers said was too expensive due to overly generous benefits and threshold injury level requirements that were too low to prevent lawsuits seeking additional damages. 

Under no-fault, each driver‘s auto insurance coverage pays for their injury no matter who is judged at fault. The aim of such programs is to reduce litigation.

Sources:
- National Underwriter (http://www.nationalunderwriter.com/pandc/hotnews/viewPC.asp?article=5_9_03_14_8983.xml)