Auto Insurance Reform Bill Fails

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A House committee has killed the second of two auto-insurance reform bills introduced this year. Both bills were aimed at reforming the state's no-fault system, in which insurers pay for damages regardless of fault. Motorists give up some rights to sue.

The Appropriations Committee voted 6-to-4 to kill House Bill 1321. Another bill died last week after opponents said it didn't guarantee insurance rates would drop. Colorado's premiums are among the eleven highest in the country. They could increase to twice the national average this year.

Governor Owens says Colorado will return to a tort system if lawmakers don't reform auto insurance by the end of this session. That system requires all auto-accident claims to be settled in courts.