Colorado Auto Insurance: What You Need To Know

Auto insurance is mandatory in Colorado, and the state has specific requirements for the minimum amount of coverage that drivers must have. The minimum coverage includes liability insurance, which covers bodily injury to another person or property damage to another person's vehicle or property when the insured is at fault for an accident. The minimum coverage required by the state of Colorado 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.

Minimum auto insurance requirements in Colorado

Automobile owners in Colorado are required to carry liability insurance. Liability insurance covers bodily injury to another person or property damage to another person's vehicle or property when the insured is at fault for an accident. The minimum amount of Colorado auto insurance coverage is $25,000 per person for bodily injury, with a total maximum of $50,000 per incident, and up to $15,000 for damage to another person's property.

In other words, the minimum coverage levels you must buy in Colorado are:

• $25,000 bodily injury liability per person.
• $50,000 bodily injury liability per accident.
• $15,000 property damage liability per accident.

These are also known as limits of 25/50/15.

Liability car insurance covers the cost of any damage, injuries or deaths you cause in a car accident, up to your policy's predefined limits. However, it's often best to buy more than the bare minimum to avoid being left vulnerable to lawsuits or major accident bills.

You can also add the following optional coverages to your policy:

• Comprehensive coverage, which is used to repair your vehicle when physical damage occurs from non-collision-related incidents (subject to a deductible). Such incidents include theft, fire, vandalism, glass breakage, and contact with animals.
• Collision coverage, which is used to repair your vehicle when physical damage occurs from a collision with another vehicle or object (subject to a deductible).
• Uninsured/underinsured motorist protection, 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.

Colorado drivers can also purchase medical payments coverage, which may cover reasonable and necessary medical expenses or funerals for you and other passengers in your vehicle in an accident, regardless of who is at fault, up to the amount you choose.

Liability insurance coverage

In Colorado, automobile owners are legally 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 state of Colorado sets out the following minimum coverage requirements:

• $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

While these are the minimum liability insurance requirements in Colorado, higher coverage can be purchased. Most insurers recommend that bodily injury liability insurance limits be set for at least $100,000 per person and $300,000 per accident. Financial experts advise drivers to carry at least a 100/300 policy ($100,000 per person and $300,000 per occurrence). This is because liability insurance only covers damages up to the policy's predefined limits, and being underinsured can leave you vulnerable to lawsuits or large bills following a serious accident.

When deciding on the amount of liability insurance coverage to purchase, it is important to carefully consider what you can afford and what assets you need to protect. It is also worth noting that failure to hold at least the required minimum insurance coverage in Colorado can result in penalties, including points on your driving record, fines, license suspension, and community service.

Optional insurance coverage

While liability insurance is mandatory in Colorado, there are several other types of insurance coverage that are optional. These include:

Comprehensive Coverage

This type of insurance covers the cost of repairing your vehicle when physical damage occurs due to non-collision incidents, such as theft, fire, vandalism, glass breakage, or contact with animals. This coverage is subject to a deductible, which is the amount you must pay out of pocket before your insurance company covers the rest.

Collision Coverage

Collision coverage is used to repair your vehicle when physical damage occurs due to a collision with another vehicle or object. Like comprehensive coverage, this is also subject to a deductible.

Uninsured/Underinsured Motorist Coverage

This protects you in the event that you are in an accident with another driver who does not have insurance or does not have enough insurance to cover the costs of the accident. It includes both property damage and bodily injury protection.

Medical Payments Coverage

This insurance covers reasonable and necessary medical expenses or funeral costs for you and other covered individuals in your policy, up to the amount you choose, regardless of who is at fault in the accident.

Average cost of auto insurance in Colorado

The average cost of auto insurance in Colorado varies depending on factors such as age, location, driving history, and the level of coverage.

For minimum coverage, the average cost is around $51 to $582 per year, or $45 to $49 per month. For full coverage, the average cost is about $1,378 to $2,333 per year, or $115 to $194 per month.

The cheapest average rates for minimum coverage are offered by American National and Geico. For full coverage, American National, Geico, and Colorado Farm Bureau offer the cheapest rates.

The cost of auto insurance in Colorado is influenced by factors such as the state's weather conditions, natural disasters, the number of uninsured drivers, and urban traffic conditions, which increase the likelihood of accidents. Additionally, the urbanization level, state insurance laws, and the cost of auto repairs can also impact insurance premiums.

Age is a significant factor in determining auto insurance costs in Colorado, with younger drivers typically paying more. Drivers aged 22 to 29 face the highest rates due to their inexperience, while rates generally decrease with age, reaching more affordable levels for individuals aged 30 and above.

The level of coverage also affects the cost of auto insurance in Colorado. Minimum coverage is typically cheaper, while opting for full coverage or including comprehensive and collision coverage will increase the premium. However, choosing a higher deductible can make these added protections more affordable.

Discounts on auto insurance in Colorado

Auto insurance is mandatory in Colorado, and drivers are required to carry liability insurance. The minimum coverage levels you must buy in Colorado are:

• $25,000 bodily injury liability per person.
• $50,000 bodily injury liability per accident.
• $15,000 property damage liability per accident.

However, it is often best to buy more than the bare minimum to avoid being left vulnerable to lawsuits or significant accident bills. You may also want to consider other coverage types, such as collision and comprehensive, which pay for damage to or theft of your car.

When it comes to discounts on auto insurance in Colorado, several factors and criteria come into play. Here are some of the standard discounts offered by various insurance providers in the state:

• Multi-policy discounts: You can often get a discount by bundling multiple insurance policies with the same company, such as home and auto insurance.
• Multi-vehicle discounts: Insuring multiple vehicles under the same policy or combining auto insurance policies can result in lower rates.
• Military discounts: Many companies offer discounted rates for active military members, veterans, and their families.
• Senior discounts: Drivers aged 55 and above may be eligible for senior discounts with certain insurance providers.
• Homeowner discounts: If you own a home, some insurance companies will offer you a discount on your auto insurance.
• Good student discounts: Full-time students who maintain a certain grade point average (usually a B average or higher) can often get a discount on their auto insurance.
• Good driver discounts: If you have a clean driving record with no at-fault accidents, DUIs, or speeding tickets within a specified period (typically three years), you may be eligible for a good driver discount.
• Defensive driving discounts: Taking a defensive driving course can help you qualify for a discount with many insurance providers.
• Driver training discounts: Completing a driver education training course can also lower your insurance rates.
• New car discounts: Insuring a new car, typically three model years or newer, may make you eligible for a discount.
• Safe car discounts: If your vehicle has safety features like anti-theft technology, you may be able to get a discount on your insurance.
• Paperless discounts: Opting to receive your insurance documents via email instead of paper mail can sometimes result in a small discount.
• Pay-in-full discounts: Paying your insurance premium in full upfront rather than in installments may qualify you for a discount.

It's important to note that the availability of these discounts may vary by insurance provider and state. It's always a good idea to speak with an insurance agent or representative to understand the specific discounts you may qualify for and how to take advantage of them.

Frequently asked questions