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Colorado Car Insurance Laws

Colorado car insurance laws require every driver to maintain liability coverage. In efforts to decrease the number of uninsured drivers, Colorado has used a database since 1997 to keep track of drivers. Accident related expenses and auto insurance premiums are reduced by ensuring every driver complies with state car insurance laws.

Colorado drivers can also use ways to reduce their car insurance premiums. One approach is comparing rates and receiving quotes from multiple car insurance providers.

colorado car insurance lawsThis is a way to look at what various providers offer to ensure they receive the best policy coverage at the right price. Enter your ZIP code into our FREE auto insurance comparison tool to see quotes now!

Receiving a car insurance quote from reliable car insurance companies has become easy with the internet. Simply enter your ZIP code and start comparing car insurance quotes today! You are under no obligation to purchase. However, you can make a sound decision on getting the best rate by comparing multiple insurance companies.

Penalties for Driving Without Insurance

Car insurance laws in Colorado include penalties for drivers who choose to drive without adequate liability insurance. State law considers it a misdemeanor to drive without proof of insurance.

  • The first offense leads to a $500 fine. Additionally, drivers will receive four points on their driving record and could face driver’s license suspension.
  • The second offense is a minimum $1,000 fine and a four month driver’s license suspension
  • The third offense also leads to a minimum $1,000 fine, an eight month driver’s license suspension and community service.

Vehicles Not Requiring Liability Insurance

According to Colorado car insurance laws, all vehicles defined as licensed land vehicles must have insurance coverage. This definition excludes the following types of vehicles:

  • Private airplanes
  • Boats
  • Go-carts
  • All-terrain vehicles (ATVs)
  • Snow mobiles

Car Insurance Laws in Colorado

The car insurance laws in Colorado outline specific types of coverage and the associated minimum values. Drivers who are looking to purchase car insurance in Colorado should understand their legal obligation.

In addition, consideration for extra coverage is essential to ensure they can cover all expenses related to a car accident. Too much coverage can be expensive; however, not having enough will cost drivers more in the end.

Making the best decision when comparing car insurance quotes requires understanding how each coverage type is defined and the minimum state law requirements. Generally, Colorado drivers must have bodily injury and property damage liability coverage, also known as 25/50/15.

Bodily Injury Liability (BI)

Typically, bodily injury liability provides coverage for the insured driver who causes an accident that injures or kills another person. Colorado car insurance laws state that drivers must have $25,000 for bodily injury per person and $50,000 bodily injury per accident.

Some experts recommend carrying more than the minimum $25,000 required in Colorado. Otherwise, the insured driver’s personal assets are in jeopardy if accident related expenses exceed the minimum amount.

Property Damage Liability (PD)

Coverage for property damage provides financial protection to the insured driver who damages someone else’s property. This usually pertains to another vehicle, but may also cover garage doors, utility poles, building or other physical properties.

In Colorado, drivers must have $15,000 insurance to cover each occurrence.

Other Car Insurance Requirements in Colorado

In 2008, Colorado passed legislation that expanded the state’s requirements for uninsured/underinsured motorist coverage (UM/UIM). This expansion may affect individual drivers differently. It is a good idea to inquire about how this change affects policy coverage and premiums.

Another change occurred in 2009 concerning medical payment coverage, also known as Med Pay or MPC. Insurance providers must offer this to each driver who purchases car insurance in Colorado.

Uninsured/Underinsured Motorist

car insurance laws coloradoThis type of insurance covers medical and other related expenses for an insured driver. When a driver who lacks adequate insurance causes an accident, the insured driver is protected by this coverage. Drivers always have the option to purchase more than the minimum state law requirements.

Insurance providers in Colorado must offer the same limits as BI liability for UM/UIM coverage. Most drivers select the $25,000/$50,000 minimum. Others may choose to purchase more, especially if they have more coverage for liability insurance.

Medical Payments Coverage

This addition to Colorado car insurance laws helps protect insured drivers for medical related expenses. Drivers must opt out of this additional coverage in writing. Otherwise, Med Pay is automatically added to their insurance policy and premium payments.

According to the law, insurance providers must hold $5,000 for the first 30 days to cover trauma bills.

Comprehensive and Collision Car Insurance Coverage

Another car insurance coverage in Colorado is comprehensive and collision. These are considered optional coverage in Colorado. However, banks require drivers to purchase comprehensive and collision when it finances the purchase of a vehicle.

Comprehensive covers a vehicle from theft or damage that is not caused by a collision. Most insurance policies cover damage caused by natural disasters such as floods, earthquake or hail. Comprehensive also protects vehicles that sustain damage from wildlife encounters, explosions and falling objects.

Collision is coverage for vehicle damage sustained when the insured driver hits another car. The collision may also occur from hitting other objects such as a fire hydrant or brick wall.

Both comprehensive and collision can be purchased with a deductible. For example, the insured driver is responsible for the first $500 or $1,000 of damage related expenses.

Knowing the car insurance laws in Colorado helps drivers make the right decisions about how much coverage is necessary. Considerations for the type of vehicle owned and personal assets are part of selecting good insurance policy coverage. Enter your ZIP code into our FREE car insurance comparison tool to start comparing quotes now.

There are plenty of sites online where drivers can compare quotes from various car insurance providers. After compiling all the necessary details, drivers can enter their ZIP code and receive FREE car insurance quotes today!

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