Auto Insurance In Co: Understanding Minimum Coverage Requirements

In Colorado, drivers are legally required to have a minimum of $25,000 in bodily injury liability coverage per person, $50,000 per accident, and $15,000 in property damage liability coverage per accident. These requirements are in place to ensure that motorists can cover the costs associated with damages and injuries they may cause in an accident, protecting themselves and others financially. While these are the minimum coverage levels mandated by the state, drivers can opt for more comprehensive insurance plans to suit their individual needs.

Bodily injury liability insurance

In Colorado, bodily injury liability insurance is a legally required type of auto insurance. It covers the cost of injuries, including the financial toll of recovering from those physical injuries, that you cause to another person in a crash. This includes emergency room charges, prosthetics, dental expenses, lost wages, and reduced earning capacity.

The minimum bodily injury liability insurance coverage mandated by the state of Colorado is $25,000 per person and $50,000 per accident. This is also known as "25/50" bodily injury insurance or liability insurance. This means that if you are found to be at fault in a car accident, your insurance will cover up to $25,000 of the other person's expenses related to their injuries, and up to $50,000 total if multiple people are injured.

If you do not have at least this much insurance coverage, you can face legal consequences such as being pulled over and ticketed, having your car impounded, and having your driver's license suspended. If you are found to be at fault in a car accident and do not have sufficient liability insurance, you may be held personally liable for the costs of the other person's injuries. This means that the injured person can sue you for compensation, and you may have to pay their expenses out of your own pocket.

While the minimum coverage required by Colorado law is $25,000 per person and $50,000 per accident, it is recommended that you consider purchasing higher coverage limits if you can afford to do so. This is because medical costs can add up quickly, and if your insurance coverage is insufficient, you will be responsible for paying the remaining expenses out of your own pocket. Most insurers recommend bodily injury liability insurance limits of at least $100,000 per person and $300,000 per accident.

Property damage liability insurance

In Colorado, the minimum property damage liability insurance coverage required by the state is $15,000 per accident. However, Colorado residents may opt to purchase higher limits, and according to local insurance companies, most residents choose a property damage liability insurance policy with a $100,000 limit.

It is important to note that property damage liability insurance will only cover costs up to the limit of the policy. Any accident-related costs above the limit will be the driver's responsibility. Therefore, purchasing property damage liability insurance can provide significant savings in the event of an accident, despite being more expensive upfront.

Uninsured/underinsured motorist coverage

Uninsured motorist coverage will protect you if you are hit by a driver with no auto insurance. Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, will protect you if the other driver doesn't have adequate coverage to pay for the damages or injuries they caused. You can file a claim against your uninsured motorist coverage if you are the victim of a hit-and-run accident.

If you don't have this coverage and are in an accident with an uninsured or underinsured driver, you may have to pay for medical bills and vehicle repairs out of pocket, even if you file a claim against your own policy.

• Uninsured motorist bodily injury (UMBI): This covers medical bills for you and your passengers if you're hit by an uninsured driver.
• Uninsured motorist property damage (UMPD): This covers damage to your vehicle if you're hit by an uninsured driver.
• Underinsured motorist bodily injury (UIMBI): This covers medical bills for you and your passengers if you're hit by a driver with insufficient insurance.
• Underinsured motorist property damage (UIMPD): This covers damage to your vehicle if you're hit by a driver with insufficient insurance.

While Colorado does not require this coverage, it is mandatory in many other states and can provide valuable financial protection in the event of an accident.

Collision coverage

The cost of collision insurance depends on a number of factors, including your driving history, the type of car you drive, and where you live. In general, adding collision insurance to your policy will increase your annual premium by around $600, or $900 if you want a low deductible.

Comprehensive coverage

In Colorado, drivers are not legally required to have comprehensive insurance. However, this type of insurance can be beneficial in protecting against non-collision incidents, such as theft, vandalism, or natural disasters. Comprehensive insurance is an optional coverage that protects your vehicle from damage caused by incidents other than collisions. This includes theft, vandalism, glass and windshield damage, fire, accidents with animals, and weather-related events. It is often referred to as "other than collision" coverage.

While it is not mandatory, lenders may require you to carry comprehensive insurance when you finance or lease a vehicle. This is to protect their financial interest in the car. If you own your vehicle outright, the decision to acquire comprehensive insurance is at your discretion. However, it is recommended for high-value vehicles or if the potential out-of-pocket repair costs are a concern.

The cost of comprehensive insurance will depend on factors such as the value of your car, your personal preferences, and your financial circumstances. It is important to consider the potential risks and whether you would be able to afford repairs or replacement of your vehicle without insurance.

In Colorado, the minimum coverage auto insurance includes $25,000 for bodily injury liability per person, $50,000 per accident, and $15,000 for property damage liability per accident. This basic coverage is legally required for all drivers in the state and ensures they meet their financial responsibilities in the event of an accident.

Frequently asked questions