The "Liverpool" singer, whose 1987 single "Wonderful Life" was a top 10 hit around the world, suffered head injuries in the crash in Ireland on January 10 and was placed in an induced coma, reported BBC online.
He died on Tuesday surrounded by his family in hospital, his publicist said.
His wife Camilla said she was "deeply grateful" to staff who cared for him.
The father-of-three, who was in intensive care at Cork University Hospital, "died peacefully" with his family at his side "who were singing him on his way", a statement said.
Fellow Liverpool musician Pete Wylie of 80s band The Mighty Wah! paid tribute to his friend on Twitter, saying the news was "just so very sad".
"I want to send all the love I can muster to Colin's parents, brother & partner + to all who loved him, and who he loved too," he wrote.
"I could still sing the very first song Colin recorded with me in the WAH! studio. I remember it that clearly. And that voice!"
His second hit song "Wonderful Life", which he had previously released but only got to number 72 in the charts, made the top 10 in the UK, Switzerland, Germany, France, Austria, the Netherlands and Italy.
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