In Colorado (as in most states) - while the employer is going to be ultimately responsible for any damage or injury due to an accident or collision caused by the operation of one of their company vehicles (or a private vehicle operated in the course of company business), the operator of the vehicle remains personally liable for their own actions (including negligent or intentional operation of the vehicle).
This means that the employer can pursue the employee for compensation for damage to their vehicle if damaged by the employee.
However, the employer cannot withhold earnings from the employee's paycheck.
If the employee denies liability, the employer is forced to pursue negotiations, mediation, or litigation, to get a judgment against the employee (so they must prove negligence, recklessness, or intentional wrongdoing in court and get a civil judgment - the employee has an opportunity to defend this action).
If the employer's insurance carrier is paying these damages as part of the insurance claim - the employer has a greatly reduced incentive to pursue these more aggressive options (why would an employer pursue a trial when they have already been paid by their insurance carrier?).
The measure of damages is limited to the cost of reasonable cost of replacement or repair - usually the amount set by the insurance carrier is a good indicator of what these damages should be. But again, you can contest your liability and decide whether or not you want to agree to pay or force them to prove it in court.