Auto Insurance Requirements in Colorado
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Colorado's Motor Vehicle Financial Responsibility Law requires that all Colorado drivers carry auto liability insurance for no less than the amounts of 25/50/15.
This law means to protect both parties in a car accident when there is property damage or injuries. You will need to have a valid policy in place when you register your car with the Colorado Department of Revenue Division of Motor Vehicles.
If you ever get pulled over in Colorado, you may be asked to provide evidence of insurance. Have your insurance ID card with you at all times, so you can avoid penalties for not presenting proof when requested. A law enforcement officer in the Centennial State will also accept a photo of your ID card saved in your phone or a copy of the declarations page of your policy.
Colorado required car insurance coverage
Required Min. Limits | |
|---|---|
| $25,000 per person/$50,000 per accident | |
| $15,000 per accident |
Colorado car insurance minimum requirements
To satisfy the law, your policy needs to at least include bodily injury and property damage coverage; this is called liability insurance. An insurance policy covers your financial liability — the dollar amount you are responsible for — to the other party, whenever you are found to be at fault for an accident to any degree. A policy is only valid when it includes or exceeds the following amounts (limits):
Bodily injury (BI): $25,000/person, $50,000/accident
Requirements
- $25,000 per injured person
- No more than a total of $50,000 per accident for two or more injured people
Covers
- Your personal assets
- Legal fees, in the event the other party sues you, up to the stated limit
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Does not cover
- Your own medical bills
Property damage (PD): $15,000/accident
Requirement
- $15,000 per accident
- Higher limits are available but vary by insurer
Covers
- The other driver's car
- Other property that is damaged in the accident (buildings, fences, etc.)
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Cheapest companies in Colorado for minimum liability
Optional coverage in Colorado
The minimum liability policy fulfills your responsibility as a CO driver, but it does not protect you completely. It ensures that your financial debt to the other driver is paid without having to pay out of your own pocket (at least before the limits are hit), but it does not account for your own injuries or repairs to your own car. Here are several optional types of coverage you can add to your Colorado auto insurance policy:
Medical payments (MedPay)
Medical payments (MedPay): This covers your own medical expenses for injuries resulting from an accident, whether or not you are at fault for it. In fact, all licensed Colorado insurers are obligated to offer you MedPay coverage in the minimum amount of $5,000 per accident, unless you reject it in writing. Although some Colorado motorists may find that MedPay overlaps with their health insurance plan (when MedPay is the primary coverage for auto accident injuries), MedPay still has some benefits.
For example, if you have a high-deductible health insurance policy, you'll have to pay for your medical bills until you reach the deductible amount, when your insurer will start to cover your benefits. MedPay can reimburse you, up to the limits you've chosen, for your deductible.
Uninsured/underinsured motorist bodily injury (UM/UIMBI)
Uninsured/underinsured motorist bodily injury (UM/UIMBI): Despite auto insurance being mandatory, an estimated 16.3% of drivers are on the road in Colorado without a policy. Chances are, they would lack the ability to pay for your loss if they cause an accident. UM/UIMBI ensures that under such circumstances, your own insurer pays for your medical expenses. The minimum UM/UIMBI limits you can purchase are the same as the required minimum liability limits: $25,000 per injured person and $50,000 total per accident. You can buy more in CO, but your BI limits must always be equal to or higher than your UM/UIMBI limits.
Alternative proof of financial responsibility
In the event you get into an accident in which someone is injured or dies, you may be asked to submit proof of financial responsibility. Also known as an SR-22, this form states that you are maintaining the required liability insurance coverage and is filed with the CO government by your insurer. In Colorado, you have one alternative to a liability policy to prove your financial responsibility, and that is with a cash deposit or surety bond.
When you make a deposit with the director of the Colorado Department of Revenue, your requirement is considered fulfilled. This deposit will be used to satisfy any judgment against you for the accident, and the balance will be returned to you after a certain period of time.
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