Colorado Auto Insurance Guide

Colorado Minimum Auto Insurance Requirements

Get Colorado Auto Insurance State Guides, Laws and Regulations before You Buy Insurance

Colorado law requires all vehicles to have basic liability coverage. Most CO drivers buy their auto insurance from a traditional insurance company and pay a premium to do so.

However, CO law allows individuals who own 25 vehicles or more to self-insure. In a nutshell, high-net-worth individuals can prove to the state they have enough cash on hand at any time to pay for any damage or injury they might cause when behind the wheel. Self-insurance is rare, though. Most drivers choose traditional auto insurance policies.

Key Takeaways

Colorado law states drivers must have liability coverage of $25,000 / $50,000/ $15,000. In a covered accident, Colorado’s minimum car insurance will pay:

• Up to $25,000 for injury to another person
• Up to $50,000 if more than one person is hurt
• And $15,000 of property damage

Introduction to Colorado Auto Insurance Requirements

Liability coverage in Colorado exists to protect drivers financially in case of an accident. Still, many drivers feel they need more coverage than the state minimum. That’s because our modern vehicles are faster than ever, and more capable of causing damage to other people and their property.

The costs to repair damaged property are increasing as well, so people with assets tend to buy more liability coverage.

CO Auto Insurance Coverage Descriptions

Colorado only requires drivers to maintain basic liability coverage. But other coverages are available, and they might be required by your lienholder (the financial institution that has your auto loan.) Some important coverages include:

• Collision coverage pays for damage to your vehicle if you collide with anything, whether a structure or a vehicle.
• Comprehensive coverage pays for other kinds of damage, like theft.
• Glass coverage is generally available, which helps pay for windshields and windows.

Colorado Minimum Auto Insurance Requirements

$25,000 Personal Injury

If you’re responsible for injuring another driver, this coverage helps to pay medical costs and more. But it may not be enough coverage. With these limits, medical costs above $25,000 for one person, or $50,000 for more people become the responsibility of the at-fault driver.

$15,000 Property Damage Liability (PDL)

Most vehicle accidents cause some amount of property damage, whether it’s to other vehicles on the road, real estate, or another person’s belongings. This coverage pays for these damages. If these damages are more than $15,000, the at-fault driver will need to pay the difference.

Does Colorado Require Uninsured / Underinsured Motorist Coverage?

No. As of 2022, there is no Colorado law that requires drivers to keep this type of coverage. However, it’s included in most full-coverage packages, and might be available as an add-on or endorsement. Many drivers feel it’s a valuable addition.

New Driving Laws in Colorado

As of January 1, 2022, Colorado has softened their approach to driver license revocation. Previously, CO drivers could lose their driving privileges for infractions that had little to do with their driving behavior. For instance, CO drivers could lose their license for supplying alcohol to a minor or a theft conviction.

CO drivers will no longer lose their license for these sorts of events, and the state estimates 100,000 people will keep their license every year.

Penalties for Failure to Carry Colorado Auto Insurance

If you are caught driving without insurance in CO, the penalties are significant. Your first offense will lead to a $500 fine and four points on your license. These points may make it difficult to find affordable Colorado auto insurance in the future.

If a driver is found to be operating a motor vehicle without insurance a second time, the fine is $1,000, and your license may be suspended for four months.

For third offenses and beyond, the fine is also $1,000. Your license will be suspended for eight months.

How to Get the Cheapest Colorado Auto Insurance

Most auto insurance companies will slowly increase your premium (price) over time, even if you don’t have any claims. This is a marketing tactic, not your imagination. So, it makes sense to call around and shop for auto insurance every few years. Insurers will try to gain your business by offering a better price.

Other ways to decrease your costs for CO auto insurance are:

• Increase your deductibles if you have full coverage: The higher your deductible, the less your insurance will cost. However, this doesn’t apply to liability-only policies, and your lienholder may require you to carry a lower deductible.
• Shave away extra bells and whistles: For example, if you own several vehicles, you may not need rental car reimbursement coverage.
• Seek a “bundle” if you have several insurance policies: Insurers may offer you a discount if you have several types of insurance with one provider.
• Buy a price-per-mile policy: These auto insurance policies are best for low-mileage drivers who don’t drive much. You will report your mileage several times a year to the insurer.

Read More: 8 Simple Ways to Save You 90% On Your Car Insurance

Colorado State Auto Insurance Premiums

Colorado insurance companies rate drivers and vehicles by their risk level. Electric vehicles (EVs), fast foreign cars, very heavy vehicles, and unsafe drivers tend to cost the most to insure. When creating your contract and deciding on your premium, insurers will consider:

• Age
• Gender
• Marital status
• Value of vehicle
• Age of vehicles
• Years of driving experience
• Type of vehicle (electric vehicles are expensive to insure)
• Prior history of claims
• Points on your license
• Tickets, moving violations and DUI
• Your zip code and garage location

CO Auto Insurance Rates by Carrier

We scoured the web to find the best Colorado auto insurance rates for very safe drivers with no claims history. However, your final price will depend on the issues listed above.

For help finding Colorado auto insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !