Orlando Harmon
Colorado requires vehicle owners to have a minimum level of auto insurance in order to drive legally. The state's car insurance system is based on liability, or who was at fault for the accident. The minimum liability insurance coverage in Colorado includes Bodily Injury (BI) and Property Damage (PD). BI coverage is $25,000 per person and $50,000 per accident, while PD coverage is $15,000 per incident. This basic coverage pays for the medical and property damage bills of those injured or whose vehicles are damaged in a car accident caused by the insured driver, up to the coverage limits.
What You'll Learn
Minimum auto insurance requirements
In Colorado, vehicle owners are required to carry liability insurance. This covers bodily injury to another person or property damage to another person's vehicle or property when the insured person is at fault for an accident. The minimum coverage required by the state is:
- $25,000 for bodily injury or death to any one person in an accident
- $50,000 for total bodily injury or death to all persons in any one accident
- $15,000 for property damage in any one accident
These are the minimum amounts of car insurance coverage that drivers in Colorado must have to operate a vehicle legally on the state's roads and highways.
While uninsured/underinsured motorist coverage (UIM) is not required in Colorado, all insurers in the state must provide this type of coverage. It can be waived only if it is rejected in writing.
In addition to the above, since 2009, Colorado has required auto insurers to offer $5,000 in medical payment, or "MedPay," coverage. Drivers can opt out, but if they take no action, the coverage and premium are added to the policy automatically.
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Optional auto insurance coverage
In the state of Colorado, vehicle owners are required to maintain certain minimum amounts of car insurance coverage to operate a vehicle legally on the state's roads and highways. However, there are several optional types of auto insurance coverage that drivers can choose to add to their policies for additional protection. Here is some information about these optional coverages:
Uninsured/Underinsured Motorist Coverage (UM/UIM)
Uninsured/Underinsured Motorist coverage is optional in Colorado but can provide valuable protection in the event of an accident with a driver who has insufficient insurance. This coverage pays for the insured's bodily injury losses caused by a hit-and-run driver, a driver with no automobile insurance, or a driver whose insurance is insufficient to fully compensate for the insured's injuries and damages. While not mandatory, all insurers in Colorado must offer UM/UIM coverage equal to the policyholder's chosen liability coverage for bodily injury, unless it is waived in writing.
Comprehensive and Collision Coverage
Comprehensive insurance covers damage to the insured's vehicle from events other than collisions, such as falling objects, fire, natural disasters, theft, or vandalism. On the other hand, collision insurance pays for damage to the insured's vehicle resulting from a collision with another vehicle or object or from a rollover. Although not legally required, lenders typically mandate this coverage as a condition of vehicle financing.
Medical Payments Coverage
Medical Payments Coverage, often referred to as "MedPay," can help cover medical expenses resulting from a motor vehicle accident. This coverage is optional but can provide quick compensation for medical bills, regardless of who is at fault in the accident. Colorado insurers typically offer MedPay coverage starting at $5,000, and additional coverage can be purchased if needed.
Personal Umbrella Policies
Personal Umbrella Policies provide additional coverage beyond the limits of a standard automobile or homeowner's policy. These policies come into play when the underlying policy limits are insufficient to cover all damages in an accident. Some umbrella policies also include UM/UIM coverage, providing extra protection if injured by an uninsured or underinsured driver.
It is important to note that while these coverages are optional, they can provide valuable financial protection in the event of an accident. Each driver's needs are unique, so it is recommended to periodically review insurance coverage to ensure adequate protection.
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Penalties for driving without insurance
Driving without insurance in Colorado is considered a class 1 misdemeanour traffic offence. The state has a database of registered vehicles, which it compares with a list of insured vehicles provided by insurance companies. If a vehicle is found to be registered but uninsured, the policyholder will be notified. If you are caught driving without insurance, you will face penalties.
Penalties for a First Offence
- A minimum fine of $500
- License suspension until you can show proof of insurance to the Division of Motor Vehicles
- Four points on your driver's license
- A possible 40 hours of community service
Penalties for a Second Offence
- A minimum fine of $1,000
- License suspension for four months
- Four points on your driver's license
- A possible 40 hours of community service
- 10 days to one year in jail
Penalties for a Third or Subsequent Offence
- A minimum fine of $1,000
- License suspension for eight months
- Four points on your driver's license
- A possible 40 hours of community service
- 10 days to one year in jail
To get your license back after a suspension, you must pay a $95 reinstatement fee, get an insurance policy, and file an SR-22 form with the Motor Vehicle Division. You will need to maintain the SR-22 form for three years.
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Proof of insurance
In Colorado, vehicle owners are required to carry liability insurance. This insurance covers bodily injury to another person or property damage to another person's vehicle or property when the insured person is at fault for an accident. The state has set minimum coverage requirements, but higher coverage can be purchased. The minimum coverage amounts are as follows:
- $25,000 for bodily injury or death to any one person in an accident
- $50,000 for bodily injury or death to all persons in any one accident
- $15,000 for property damage in any one accident
- A valid Colorado insurance card (a physical copy or a digital version on a phone or other electronic device)
- A declaration page
- A binder or letter from an insurance company on company letterhead
- Electronic proof of insurance, such as an electronic image or proof on a phone, laptop, or other portable electronic device
- A copy of your Colorado insurance policy
- A letter from your insurance company on company letterhead
- A computer printout from the insurer
- A facsimile of the proof of insurance
- Electronic mail from the insurer
Colorado also has a myColorado app where drivers can store a digital copy of their insurance card.
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Claim options after an accident
After a car accident in Colorado, you can proceed in one of three ways:
File a claim with your own insurance company
If you have the relevant coverage, you can file a claim with your own car insurance company, regardless of who caused the accident. This is an option if you have medical payments coverage (for injuries) or collision coverage (for vehicle damage).
File a third-party claim
You can file a "third-party" claim with the other driver's insurance carrier and negotiate a settlement that covers your losses. This is usually the best option if the other driver's insurer accepts fault.
File a personal injury lawsuit
You can file a personal injury lawsuit against the at-fault driver in court. Their insurance coverage would still be relevant here, and the lawsuit could settle out of court at any point.
Additional information
Colorado is a "'fault' car accident state", meaning the person who was at fault for causing the accident is financially responsible for any resulting harm.
It's important to report a car accident to the police as soon as possible. If you don't, you could face criminal penalties, including a fine of at least $300. If someone was injured or killed in the accident, failing to report it is a felony.
You should also be aware of the statute of limitations for car accidents in Colorado, which is three years. This is the maximum time between the accident and the moment the injured party initiates legal proceedings.
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Frequently asked questions
The minimum coverage in Colorado is $25,000 per person for bodily injury or death, $50,000 total per accident for bodily injury or death, and $15,000 per accident for property damage.
The liability insurance covers bodily injury to another person or property damage to another's vehicle or property when the insured is at fault for an accident.
Failure to hold at least the required minimum insurance coverage can result in a fine of at least $500, 4 points on your driving record, a possible license suspension, and up to 40 hours of community service.
Liability insurance only covers the other driver's vehicle or property if you are at fault in an accident. Full coverage includes liability insurance and also covers your own injuries and repairs to your own car.
In addition to liability insurance, you can also choose to add optional coverages such as medical payments, uninsured/underinsured motorist coverage, collision coverage, and comprehensive coverage.
