Monday, May 12th, 2003 — 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.