According to a story on the Denver Business Journal, a bill aimed at doing away with the tort system for auto accidents was killed in committee last week.  The bill sought to reinstate the “no fault” system in Colorado.  Up until 2003 Colorado had a “no fault” system for dealing with auto accidents, where the consumer purchases insurance to cover damage done to the consumer in an auto accident and damages aren’t paid for by the person who caused the wreck. 

In 2003 the state instituted a tort system to deal with auto accidents, where the at fault party pays for the damage they cause.  The new “no fault” bill was opposed by both trial lawyers and the insurance industry.  A 2007 study showed that car insurance premiums dropped $322 for the average motorist, since the tort system was put in place, a 35% decrease in premiums. 

The people behind this no fault bill were medical providers.  They claim that under the no fault system they were paid for 60% of the care they provided to car accident victims, while under the tort system they are reimbursed for only 36% of the care they provide.  Insurers claim that the no fault system is subject to abuse.