Auto Accident Demand Letter - Colorado

DEMAND FOR SETTLEMENT — MOTOR VEHICLE COLLISION

STATE OF COLORADO

[________________________________]
Attorneys at Law
[________________________________]
[________________________________], Colorado [____]
Telephone: [________________________________]
Facsimile: [________________________________]
Email: [________________________________]

DATE: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA ELECTRONIC MAIL

[________________________________]
[________________________________]
[________________________________]
[________________________________], [____] [____]

RE: SETTLEMENT DEMAND — MOTOR VEHICLE COLLISION
Our Client: [________________________________]
Date of Loss: [__/__/____]
Your Insured: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]

Dear [________________________________]:

This firm represents [________________________________] ("Claimant") in connection with the motor vehicle collision that occurred on [__/__/____] in [________________________________] County, Colorado. This letter constitutes a formal demand for settlement of all claims arising from this incident.

I. COLORADO-SPECIFIC LEGAL FRAMEWORK

A. Statute of Limitations

Under C.R.S. § 13-80-101, the statute of limitations for personal injury actions is three (3) years from the date of injury. For hit-and-run accidents, the statute of limitations is four (4) years under C.R.S. § 13-80-101(1)(n).

The limitations period in this matter expires on [__/__/____].

B. Modified Comparative Negligence (50% Bar)

Colorado follows modified comparative negligence under C.R.S. § 13-21-111. A plaintiff is barred from recovery if the plaintiff's negligence is equal to or greater than 50% of the combined negligence of all persons causing the injury. Where recovery is permitted, damages are reduced by the plaintiff's percentage of fault.

Note: Colorado uses a strict 50% bar (not 51%). A plaintiff who is exactly 50% at fault is barred.

Our client bears no fault whatsoever for this collision.

C. Non-Economic Damage Cap

Colorado caps non-economic damages under C.R.S. § 13-21-102.5. The cap is adjusted annually for inflation by the Colorado Secretary of State:

• Standard cap: $1,500,000 under HB24-1472 (effective January 1, 2025; next CPI adjustment January 1, 2028)

The cap applies per claimant per case and does not apply to punitive damages or economic damages.

[If serious permanent physical impairment: We will seek the enhanced cap upon clear and convincing evidence that our client sustained serious permanent physical impairment justifying an award beyond the standard cap.]

D. Colorado No-Fault / PIP

Colorado has an optional no-fault system. Under C.R.S. § 10-4-706, insurers must offer PIP coverage, but policyholders may reject it in writing. Where PIP applies, it provides first-party benefits regardless of fault.

Our client's PIP status: ☐ Has PIP coverage ☐ Rejected PIP

E. Minimum Insurance Requirements

Colorado requires minimum liability coverage of $25,000 per person / $50,000 per accident for bodily injury and $15,000 for property damage under C.R.S. § 10-4-619.

II. PRESERVATION OF EVIDENCE DEMAND

☐ Complete claims file, including all adjuster notes and evaluations
☐ All photographs, videos, and surveillance footage
☐ All recorded or written statements
☐ Vehicle inspection reports, repair estimates, and salvage records
☐ Event Data Recorder (EDR) / "black box" data
☐ Cell phone records of the insured driver
☐ All insurance policy documents

III. STATEMENT OF FACTS

On [__/__/____], at approximately [____] [a.m./p.m.], our client was [________________________________] on [________________________________] in [________________________________] County, Colorado. At that time, your insured, [________________________________], was operating a [____] [________________________________] (VIN: [________________________________]).

[________________________________]
[Describe the collision in detail]
[________________________________]

The [________________________________] [Colorado State Patrol / County Sheriff / Municipal Police] responded to the scene and prepared Crash Report No. [________________________________]. The report [________________________________] [describe findings, citations, fault].

IV. LIABILITY ANALYSIS

A. Defendant's Negligence

Your insured breached the duty of care by:

☐ Failing to maintain a proper lookout — C.R.S. § 42-4-1402
☐ Following too closely — C.R.S. § 42-4-1008
☐ Failing to yield the right of way — C.R.S. § 42-4-701 et seq.
☐ Speeding or exceeding safe speed — C.R.S. § 42-4-1101
☐ Running a red light or stop sign — C.R.S. § 42-4-604
☐ Improper lane change — C.R.S. § 42-4-1007
☐ Distracted driving / texting — C.R.S. § 42-4-239
☐ Driving under the influence — C.R.S. § 42-4-1301
☐ Careless driving — C.R.S. § 42-4-1402
☐ Reckless driving — C.R.S. § 42-4-1401
☐ Other: [________________________________]

B. Negligence Per Se

Violation of the Colorado Motor Vehicle Code constitutes negligence per se. Bedor v. Johnson, 292 P.3d 924 (Colo. 2013). Your insured's violation of C.R.S. § [________________________________] establishes negligence as a matter of law.

V. MEDICAL TREATMENT SUMMARY

A. Emergency / Immediate Treatment

B. Ongoing Treatment

C. Diagnosis Summary

☐ [________________________________]
☐ [________________________________]
☐ [________________________________]

D. Prognosis

[________________________________]

VI. ITEMIZED MEDICAL EXPENSES

Estimated Future Medical Expenses

VII. LOST WAGES AND EARNING CAPACITY

Employer: [________________________________]
Position: [________________________________]
Rate of Pay: $[________] per [hour/week/month/year]

VIII. PROPERTY DAMAGE

IX. PAIN AND SUFFERING / NON-ECONOMIC DAMAGES

☐ Physical pain and suffering (past and ongoing)
☐ Mental anguish and emotional distress
☐ Loss of enjoyment of life
☐ Inconvenience and disruption of daily activities
☐ Scarring and/or disfigurement
☐ Fear and anxiety
☐ Sleep disruption

Non-Economic Damage Cap Analysis:
- Standard cap (C.R.S. § 13-21-102.5, as amended by HB24-1472): $1,500,000 (effective January 1, 2025; next CPI adjustment January 1, 2028)
- Our client's non-economic damages: ☐ Within standard cap

Non-Economic Damages Claimed: $[________]

X. LOSS OF CONSORTIUM

[If applicable:]

Claimant's spouse, [________________________________], has suffered a loss of consortium.

Loss of Consortium Claimed: $[________]

XI. TOTAL DAMAGES SUMMARY

XII. SETTLEMENT DEMAND

Based upon the foregoing, we hereby demand the sum of:

$[________________________________]

This demand is open for thirty (30) days from the date of this letter, expiring on [__/__/____].

XIII. BAD FAITH / UNREASONABLE DELAY WARNING

C.R.S. § 10-3-1115 and § 10-3-1116 — Unreasonable Delay or Denial

Colorado has among the strongest statutory remedies for unreasonable insurance conduct in the nation. Under C.R.S. § 10-3-1115, an insurer shall not unreasonably delay or deny payment of a claim. Under C.R.S. § 10-3-1116, a first-party or third-party claimant whose claim is unreasonably delayed or denied may bring an action to recover:

☐ Two times the covered benefit (doubling of damages)
☐ Reasonable attorney fees and costs

These remedies are statutory and do not require proof of a separate tort. The standard is whether the insurer's conduct was unreasonable under the totality of the circumstances.

Your company is on notice that unreasonable delay or denial of this claim will result in pursuit of double damages and attorney fees under C.R.S. §§ 10-3-1115 and 10-3-1116.

XIV. COLLATERAL SOURCE RULE

Under C.R.S. § 13-21-111.6, Colorado has a modified collateral source rule. Evidence of collateral source payments may be introduced post-verdict, and the court may reduce the judgment by amounts received from collateral sources, minus amounts paid to secure such benefits.

XV. ENCLOSED DOCUMENTS

☐ Medical records and bills from all treating providers
☐ Police/crash report
☐ Photographs of vehicle damage and injuries
☐ Employer verification of lost wages
☐ Property damage estimates
☐ PIP payment records (if applicable)
☐ [________________________________]

XVI. RESPONSE REQUESTED

Please confirm receipt and provide a substantive response within thirty (30) days.

Respectfully submitted,

[________________________________]
Attorneys for [________________________________]

By: _________________________________
[________________________________]
Colorado Bar No. [________________________________]
[________________________________]
[________________________________], Colorado [____]
Telephone: [________________________________]
Email: [________________________________]

COLORADO PRACTICE NOTES AND CHECKLIST

☐ 50% Bar Rule: Plaintiff barred if 50% or more at fault — strict 50% bar, not 51% (C.R.S. § 13-21-111)
☐ Non-Economic Cap: $1,500,000 per HB24-1472 (effective January 1, 2025; next CPI adjustment January 1, 2028) (C.R.S. § 13-21-102.5)
☐ Unreasonable Delay/Denial: Powerful statutory remedy — 2x damages + attorney fees (C.R.S. §§ 10-3-1115, 10-3-1116)
☐ Hit-and-Run SOL: 4 years (C.R.S. § 13-80-101(1)(n))
☐ PIP: Optional; verify client's election and whether PIP has been exhausted
☐ Seat Belt Evidence: C.R.S. § 42-4-237 — admissible but may reduce damages by up to 1%
☐ Collateral Source: Modified rule — post-verdict reduction available (C.R.S. § 13-21-111.6)
☐ Punitive Damages: C.R.S. § 13-21-102 — capped at amount of actual damages; requires proof beyond reasonable doubt
☐ Government Claims: Colorado Governmental Immunity Act (C.R.S. § 24-10-101 et seq.) — 182-day notice; damage caps
☐ Minimum Insurance: $25,000/$50,000/$15,000 (C.R.S. § 10-4-619)

SOURCES AND REFERENCES

• C.R.S. § 13-80-101 (Statute of limitations)
• C.R.S. § 13-21-111 (Comparative negligence)
• C.R.S. § 13-21-102.5 (Non-economic damage cap)
• C.R.S. §§ 10-3-1115, 10-3-1116 (Unreasonable delay/denial)
• C.R.S. Title 42 (Vehicles and Traffic)
• Colorado General Assembly: https://leg.colorado.gov