Auto Insurance In Colorado: What's The Law?

Auto insurance is mandatory in Colorado, and motorists are required to carry proof of this coverage at all times while driving. The minimum amount of auto insurance coverage in Colorado is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage. This means that if a driver is in an accident and is found to be at fault, their insurance company will pay up to $25,000 for injuries to a single person, $50,000 total for injuries to all people involved, and $15,000 for damage to another person's property. These minimums are roughly on par with those in most other states, but financial experts recommend carrying at least $100,000 per person and $300,000 per accident in bodily injury liability insurance.

Colorado requires all motorists to carry car insurance

The minimum amount of auto insurance coverage in Colorado is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage. These are the minimum liability insurance coverages required by the state, and higher coverages can be purchased.

Bodily injury liability coverage applies to accidents involving the death or injury of another person. It also covers the injured party's pain and suffering, as well as their lost wages. On the other hand, property damage liability coverage insures you for damage done to someone else's property, such as their vehicle, buildings, utility poles, or other physical property.

It is important to note that your own liability coverage will never cover your injuries or damages to your own property. It only pays others in the event of an accident.

While the minimum liability coverage is $25,000/$50,000/$15,000, financial experts recommend carrying at least $100,000 per person and $300,000 per occurrence for bodily injury liability insurance. This is because emergency care costs can quickly deplete your liability limits, especially if you injure multiple people. Additionally, the $15,000 property damage limit is substantially lower than the average cost of a new vehicle.

Therefore, it is advisable to consider adding extra coverage and increasing your liability limits to ensure you are fully protected.

Minimum liability coverage: 25/50/15

In Colorado, auto insurance is mandatory. The state imposes a minimum liability coverage of 25/50/15, which includes:

• Bodily injury liability coverage with a maximum limit of $25,000 per person and $50,000 per accident. This means that if you injure someone in an accident, your insurance company will pay up to $25,000 for their medical costs, and up to a total of $50,000 for all injured parties. If the costs exceed these limits, you will be responsible for covering the remaining amount.
• Property damage liability coverage with a maximum limit of $15,000 per accident. This covers the costs of damages to someone else's vehicle or property resulting from an accident you cause. If the property damage costs exceed this limit, you will need to pay the difference out of pocket.

It is important to note that these minimum liability coverages are required by the state of Colorado, but it is recommended to purchase higher coverages if you can afford it. The state-mandated minimums may not provide enough protection in the event of a serious accident or multiple injuries. Additionally, the $15,000 property damage limit is significantly lower than the average cost of a new vehicle.

While liability coverage is essential, it is also worth considering other types of optional insurance coverage, such as comprehensive, collision, medical payments, and uninsured/underinsured motorist coverage, to ensure you are fully protected financially in the event of an accident.

Penalties for driving without insurance

Driving without insurance in Colorado is considered a class 1 misdemeanour traffic offence. The state takes uninsured driving very seriously and imposes steep penalties on those caught driving without insurance.

If you are convicted of driving without insurance in Colorado, you could face a range of penalties, including:

• A fine: For a first offence, there is a minimum fine of $500. For a second offence, the fine increases to a minimum of $1,000. For a third or subsequent offence, the minimum fine remains $1,000.
• Driver's license suspension: For a first offence, your license will be suspended until you can show proof of insurance. For a second offence, the suspension is for four months. For a third or subsequent offence, the suspension is for eight months.
• Points on your driver's license: You will receive four points on your driver's license for driving without insurance.
• Community service: The court may impose up to 40 hours of community service as part of the penalty.
• Jail time: You could face up to one year in jail for a second or subsequent offence.

It is important to note that these penalties become more severe if you are caught driving without insurance multiple times. Colorado has a Uninsured Motorist Database, which helps to identify registered vehicles that are uninsured. If you are unable to provide proof of insurance when requested by a law enforcement officer, you may have your driver's license confiscated and be issued a citation or summons.

Optional insurance coverage

While liability insurance is mandatory in Colorado, there are several types of optional auto insurance coverage that residents can choose to purchase. These include:

Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist (UM/UIM) coverage is optional in Colorado. This type of insurance covers the insured's bodily injury losses caused by a hit-and-run driver, a driver with no auto insurance, or a driver of an underinsured vehicle. UM/UIM coverage is meant to protect the insured when the at-fault driver has insufficient insurance coverage. It is important to note that UM/UIM does not cover damage to the insured's vehicle. By law, insurers in Colorado must provide UM/UIM coverage equal to the policyholder's liability coverage for bodily injury unless waived in writing by the policyholder.

Comprehensive and Collision Coverage

Comprehensive insurance covers damage to an 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 a vehicle resulting from a collision with another vehicle or object, or a rollover. While not mandated by law, lenders may require both comprehensive and collision coverage for the duration of a vehicle loan.

Medical Payments Coverage

Medical payments coverage can supplement an individual's health insurance or serve as a substitute if they lack health insurance. It covers medical expenses, including copayments and deductibles, for the insured driver and passengers, regardless of who is at fault in an accident. Insurers typically offer medical payments coverage starting at $5,000, but additional coverage can be purchased.

Loan/Lease Payoff Coverage

Also known as gap coverage, loan/lease payoff coverage helps pay the difference between what is owed on a loan and the car's actual cash value. This type of insurance is useful for protecting against financial loss in the event of a total loss or theft of the vehicle.

Rental Car Reimbursement

Rental car reimbursement coverage helps pay for a rental car while the insured's vehicle is being repaired or is unable to be driven. This type of coverage can be useful for individuals who rely on their car daily and need a temporary replacement.

Roadside Assistance Coverage

Roadside assistance coverage provides assistance in various scenarios, such as towing, flat tires, dead batteries, or vehicle breakdowns. This type of coverage can offer peace of mind for drivers who worry about being stranded on the road.

Colorado auto liability coverage

Colorado requires all motorists to carry car insurance. Proof of coverage must be kept with you at all times while driving and shown to a law enforcement official if requested. Failure to carry the required coverage can lead to severe penalties.

The minimum liability coverage required by the state is $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, and $15,000 for property damage in any one accident. This is often written as 25/50/15.

The minimum coverage is not recommended, as emergency care costs can quickly exceed these limits, especially if multiple people are injured. Likewise, the $15,000 property damage limit is substantially lower than the average cost of a new vehicle.

Liability coverage in Colorado pays for bodily injuries and property damage that you cause in an at-fault accident. This coverage also includes the injured party's pain and suffering, as well as their lost wages. It is important to note that liability coverage will never pay for injuries or damages to your own property.

Two types of liability coverage are available and required by law in Colorado:

• Property damage liability coverage safeguards your assets if you are found legally accountable for a covered accident, including property damage sustained by the other party.
• Bodily injury liability coverage safeguards your assets if you are found legally accountable for a covered accident, including certain expenses associated with bodily harm sustained by the other party.

Liability coverage also provides for your legal defence if a lawsuit is brought against you as a result of a covered accident.

While the above coverages are the only ones required by law in Colorado, most insurance companies offer a wide range of other coverages that can further protect you and your assets. Some of the more common options available include:

• Comprehensive coverage, which pays for vehicle damages caused in non-collision circumstances such as theft or weather-related events.
• Collision coverage, which pays for vehicle damages resulting from a collision with another vehicle or a stationary object.
• Uninsured/underinsured motorist coverage, which protects you in the event of an accident where the other party is at fault and either doesn't carry insurance or is underinsured.
• Medical payments coverage, which goes toward paying the medical expenses for both you and those in your vehicle after an accident, regardless of fault.

Frequently asked questions