Senate Backs Bill Requiring Car Insurers to Offer Medical Coverage

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Denver (AP) Colorado drivers would be nudged into buying medical coverage on their car insurance policies under a proposal (Senate Bill 11) backed by the senate today.

Under the bill, insurance companies would have to include $5,000 in medical coverage in policies starting next year. Customers could reject the coverage but, if they don't object, the coverage would remain in the policy.

The aim of the bill is to help support a trauma system that sponsor Sen. John Morse, d-Colorado Springs, said has been “fraying” because of Colorado's tort car insurance system.

Under the old no fault system, car insurers immediately paid ambulance and hospital bills but now they have to get in line to be paid once fault is determined.

Insurers estimate drivers would pay an average of $60 per vehicle each year for the coverage. About a third of Colorado drivers already have the coverage and $5,000 is the most common amount.