For personal injury victims in Colorado, 2025 marks a significant turning point. The state has substantially increased damage caps for various civil actions, allowing plaintiffs to seek greater compensation for their injuries and losses. These changes will provide injury victims with more financial relief, better reflecting the actual impact of their suffering.
If you need help navigating these changes, call Casares Injury Law at (303) 688-7474. Contact us for a free consultation today.
What Are Damage Caps?
Damage caps are legal limits on the amount of money a plaintiff can recover in a lawsuit. In Colorado, these caps have historically restricted compensation for non-economic damages (such as pain and suffering) and punitive damages (which serve to punish wrongful behavior).
If someone sues for an injury and a jury says they should get $2 million for pain and suffering, but the state has a damage cap of $500,000, they can only get $500,000, no matter what the jury said. This is not explained to jurors during the trial, so their verdict is reduced by the judge without their knowledge.
However, past and future medical bills, past and future lost wages, and other actual costs from the injury are not limited by damage caps. That means victims can still receive full compensation for things like hospital expenses and lost income.
Caps were originally instituted to give some certainty to insurance companies about maximum payouts, but critics have long argued that they unfairly limit compensation, particularly for those who suffer life-altering injuries. The 2025 increases seek to correct these concerns, aligning compensation limits more closely with economic realities.
Major Increases in Colorado’s Damage Caps
As of January 1, 2025, several key changes will take effect, including:
1. Non-Economic Damages Cap Increase
- The cap on noneconomic damages (such as pain and suffering) will increase from $250,000 (adjusted yearly for inflation) to $1.5 million.
- Starting January 1, 2028, and every two years thereafter, this cap will be adjusted for inflation.
This is a major increase that could significantly impact personal injury settlements and jury verdicts, ensuring that injury victims receive more appropriate compensation for their suffering.
2. Expanded Wrongful Death Claims & Increased Caps
- A sibling of the deceased is now allowed to bring a wrongful death lawsuit in certain circumstances – a notable expansion of who has standing to sue.
- The wrongful death damages cap is now $2.125 million, with biennial adjustments for inflation starting in 2028.
Why Are These Caps Increasing?
The decision to raise damage caps stems from several key concerns:
- Inflation & Rising Costs: The previous caps failed to account for the rising costs of medical care, lost wages, and long-term treatment. These adjustments ensure that victims receive fair compensation based on modern economic realities.
- Fairness for Injury Victims: The previous limits often left victims under-compensated, especially in cases of catastrophic injuries or wrongful death. The increased caps better reflect the true financial and emotional toll of personal injury cases.
- Encouraging Accountability: By increasing punitive and wrongful death damages, the new law discourages reckless behavior and incentivizes responsible actions by individuals, businesses, and medical providers.
Get Legal Help Today
Navigating personal injury claims under Colorado’s new damage cap laws can be complicated, but you don’t have to do it alone. If you or a loved one has been injured, contact our team today at (303) 688-7474 or complete our online form to schedule a free consultation and learn how we can help you secure the compensation you deserve.