Colorado drivers are legally required by law to have car insurance. You are prohibited from driving your car on the roads without it. Even if you park your car in the driveway, it must still be covered according to the state’s minimum coverage requirements.
Car insurance is essential because it protects you and others on the road. In 2017, there were car insurance laws:
- Minimum coverage. Car insurance in Colorado is required by law. Drivers must have a minimum 25/50/15 liability coverage.
- Proof that insurance is required: Colorado drivers must have proof of insurance at all times. They also need to present proof of insurance when asked by law enforcement.
- Vehicle registration: To register a vehicle with the Colorado Department of Motor Vehicles the owner must show proof of insurance.
- Self insurance law: Colorado residents can be eligible for self-insurance if they own more than 25 vehicles that are registered under their name. The Colorado State Insurance Commissioner can issue a certificate for self-insurance to candidates.
Colorado Liability Insurance
Colorado law requires drivers to have a minimum level of liability insurance. Liability insurance covers the costs of other drivers’ injuries, such as vehicle damage and medical expenses, if you are involved in an accident. If you are sued by another driver, it may also pay legal fees.
Colorado’s minimum auto insurance requirement is 25/50/15. Below are the minimum Colorado car insurance requirements:
- $25,000 bodily injury liability coverage per individual
- $50,000 bodily injury liability coverage per accident
- $15,000 per accident in property damage liability coverage
Liability-only coverage can help keep your insurance premiums low. Minimum coverage insurance may not provide sufficient coverage in the case of an at-fault collision. Car accidents can be costly and you may have to fork out money.
If you cause $30,000 worth of property damage in an accident, for example, you would have to pay $15,000. You would be responsible for paying the difference if you cause an accident that causes serious injury to another driver.
You should also remember that minimum coverage insurance doesn’t offer protection for your car. You would be responsible 100% for any damage to your vehicle if you hit your neighbor’s mailbox accidentally. You also don’t have minimum coverage insurance to cover vandalism, theft, and hit-and-runs.
Is Colorado a No-Fault State?
Auto insurance laws can be divided into two types: fault or non-fault. No-fault states have auto insurance companies that automatically pay for medical expenses and lost wages. In fault states, the insurance company that covers the at-fault driver pays the medical bills of the other driver.
Colorado is a state that does not have to pay for your injuries. After an accident, the insurance company of the at-fault driver will pay the medical bills of the victim. In the event that the at-fault driver is injured in an accident, their medical payment coverage will cover hospital bills and reasonable medical expenses.
Colorado Penalties for Driving Without Insurance
Although driving without insurance is illegal in Colorado, data shows that 13.3% of Colorado drivers are uninsured. High penalties are possible if you’re caught driving without insurance or with insufficient car insurance.
Colorado law imposes a $500 penalty on drivers who are caught driving without insurance. License suspensions will also be applied until proof of insurance is provided. A second offense will result in a minimum $1,000 fine and a four-month suspension of your license.
Drivers who are convicted of three or more offences will be fined at least $1,000. Their license may also be suspended for up to eight months. Some drivers may also have to perform 40 hours of community service depending on the circumstances.
Colorado drivers who have their license suspended must obtain an SR-22 form to have their license restored. Insurance companies that offer high-risk auto insurance can obtain SR-22 certificates.
Colorado offers additional options for auto insurance coverage
Colorado insurance law only requires liability coverage. However, many Colorado drivers purchase additional coverages for more protection. These are other insurance options that Colorado drivers should look into:
- Collision insurance is insurance that covers the cost of repairing your vehicle following an accident. This insurance also covers damage from rolling over or hitting stationary objects. According to the Insurance Information Institute (III), the average cost for collision insurance in Colorado is $226.39 per annum.
- Comprehensive insurance: comprehensive coverage covers vehicle damage that isn’t caused by an accident. These include vandalism, theft, falling objects and flooding. Colorado’s average annual cost for comprehensive insurance is $228.32 (III).
- Roadside Assistance: roadside assist provides basic vehicle repairs, towing and extrication, fuel delivery, tire repair, and battery services. Most car insurance companies offer roadside assistance, which is usually very affordable.
- Gap insurance: gap coverage is an option for drivers with a leased car or financed vehicle. Gap insurance covers the difference between your car’s current worth and the loan balance if it is damaged in an accident. This coverage is required by some lenders until the loan is paid off.
Most Frequently Asked Questions
Which Colorado car insurance company is best?
Because drivers have different needs, the best Colorado car insurance company can vary. Some drivers are looking to find the lowest rates, while others want the best customer service. Drivers need to shop around for the best company based on the most important factors.
What is the best Colorado car insurance?
State Farm, Progressive and Geico are the best options for drivers looking for the lowest car insurance in Colorado. These three companies offer low premiums as well as a range of discounts that can help you save even more.
What is the cost of Colorado car insurance?
Colorado’s average full-coverage car insurance policy costs $2,004 annually. The average minimum coverage policy costs $466 annually. Colorado car insurance is more expensive that the average rate of $1,738 for full-coverage insurance.