Colorado Car Insurance Requirements: What Every Driver Needs to Know
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If you live in Colorado and own or drive a vehicle, you may wonder, "Does Colorado require car insurance?" The answer is yes. All Colorado drivers must carry auto insurance.
Auto insurance can reimburse others for medical expenses or vehicle damage if you're at fault for the accident. Additional auto insurance coverages may pay for repairs to your vehicle due to an at-fault accident or other qualifying event. Here's what you need to know about Colorado car insurance requirements.
Colorado Minimum Car Insurance Requirements
Is car insurance required in Colorado? Yes.
Colorado requires all resident drivers to carry liability insurance coverage. The Colorado car insurance minimum requirements are:
- $25,000 for bodily injury or death of a single person in an accident
- $50,000 for bodily injury or death of all individuals in an accident
- $15,000 for property damage in an accident
While those are the minimum coverages required for auto insurance in Colorado, you may obtain additional coverage for extra protection. If your vehicle is under a loan or lease, the lender may require you to purchase more insurance.
Consequences of Driving Without Insurance
Uninsured drivers can face serious consequences. Driving without insurance is a Class 1 misdemeanor in Colorado.
If a police officer catches you driving without insurance, they will issue a ticket, and you'll need to appear in court. If the court convicts you, it may impose a $500 fine, at minimum. You may also be ordered to perform 40 hours of community service. The Department of Motor Vehicles (DMV) may suspend your license until you provide evidence of adequate insurance via an SR-22, and you may incur four points on your driving record.
If you're caught driving without insurance a second time within five years of the first conviction, the court may impose a $1,000 fine, 40 hours or more of community service, and up to a year in jail.
A driver without insurance who causes an accident may face a personal injury lawsuit from impacted individuals for bodily injuries and property damage. If the lawsuit is successful, the court may order you to pay damages to the victim.
Optional Insurance Coverages in Colorado
You may purchase additional types of coverage to protect your vehicle in the event of an accident or other incident. While comprehensive and collision are optional coverages under the law, you may be required to purchase them if you finance or lease your vehicle.
Comprehensive Coverage
Comprehensive insurance pays for damage to your vehicle caused by factors outside your control, such as theft, vandalism, weather-related events, fire, or falling objects. Adding comprehensive coverage provides peace of mind that you won't be out of pocket for repair expenses if your vehicle incurs damage.
Keep in mind that you'll need to pay a deductible before comprehensive coverage kicks in. Choosing a higher deductible can lower the cost of comprehensive coverage.
Collision Coverage
Collision insurance pays for vehicle repairs if you're at fault in an accident or run into an object, such as a curb. If your vehicle is totaled in the crash, your collision insurance may reimburse you up to the amount of the vehicle's value. If your car is relatively new and it would be a financial hardship to replace it on your own, buying collision insurance may be a good idea.
Like comprehensive insurance, collision coverage requires paying a deductible before accessing benefits. Setting a higher deductible may lower your insurance rates while still providing protection.
Uninsured/Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage helps fill in the gaps if you're hit by a driver without insurance or whose insurance policy doesn't pay for the full extent of your losses. For instance, if an at-fault driver plows into your vehicle and doesn't have insurance, your uninsured motorist coverage would kick in, paying for your medical bills and vehicle repairs.
While Colorado doesn't mandate that drivers carry uninsured or underinsured motorist coverage, it is an option for individuals who want full protection in the event of an accident.
You can purchase uninsured and underinsured coverage separately or in a combined policy. You can set the coverage limits according to your needs and preferences.
Tips for First-Time Insurance Buyers
If it's your first time purchasing coverage from an insurance company in Colorado, it's helpful to understand your legal obligations and the types of insurance available. If you financed or leased your vehicle, check your contract to see if you must carry comprehensive and collision insurance and the amount needed.
Once you determine the amount of insurance you need, you can start shopping for a policy. It's a good idea to get quotes from several different carriers since insurance rates can vary widely from one provider to another.
Factors like vehicle type, age, driving history, location, and credit score can also influence auto insurance policy costs. These costs may be lower if you drive an older vehicle or live in a less populated area. Conversely, they may be higher if you live in a big city like Denver and have a few speeding tickets on your record.
EverQuote makes shopping for cheap car insurance in Colorado easy. We offer a free custom comparison from multiple Colorado car insurance companies. It only takes a few minutes to begin the process and discover your options. To get started, simply enter your zip code and provide us with a few details about your vehicle.