Colorado Car Insurance Regulations & Required Coverage

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Sep 24, 2020

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Colorado is a 25/50/15 state which means that it has car insurance minimums of 25,000/50,000/15,000. Maintaining a car insurance policy as a Colorado motorist is important and required by law. Failure to do so can result in penalties and suspension of your vehicle registration and fees. Further details regarding Colorado insurance laws can be found below.

Colorado insurance law follows a tort system. As with other states that follow this type of system, it requires that someone must always be found at fault for causing an accident and is then held financially responsible for damages resulting from the accident. The specific laws can vary from state to state but this is a basic explanation.

Required Coverage

All personal vehicles in Colorado require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage
Minimum Colorado Car Insurance Requirements
Bodily Injury Liability $25,000 / $50,000 Limit
Property Damage Liability $15,000 Limit

Additional insurance coverage can include:

  • Uninsured / Underinsured Coverage
  • Comprehensive and Collision Coverage

Uninsured / Underinsured coverage helps pay for any expenses resulting from being in an accident with a driver who is uninsured, underinsured or left the scene of the accident before you were able to get any contact information. Even though car insurance is required in Colorado, many drivers still get on the road without insurance or do not have enough coverage to meet all the expenses in a
bad car accident.

Comprehensive and collision is a type of optional coverage that can also help pay for expenses not covered in a basic car insurance policy. Collision pays for damages from any sort of accident or collision. Comprehensive pays for damages from events other than a collision such as hail damage or having your car stolen. Each have deductibles that you can set that need to be reached before the
insurance company starts paying you back. Regardless if your car is not listed as one of most stolen vehicles in Colorado, it’s recommended to
purchase this coverage.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy
  • Self Insurance – to qualify to be self insured, drivers/companies need to have at least 25 vehicles registered in their name

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card
  • Copy of Insurance Policy or Binder
  • Letter from your insurance company on their letterhead.
  • Certificate of self insurance

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • After an accident
  • When registering your vehicle, renewing your registration or receiving a temporary permit
  • Anytime you are operating a vehicle

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance within 45 days of being asked, you can face one of the following penalties:

  • First offenses result in a minimum fine of $500, 4 points being added to your license and a possible suspension
  • For second offenses, you can face a minimum fine of $1,000 and a 4 month suspension of your license
  • If you are caught without insurance a third time, you will face a minimum fine of $1,000, community service and a suspension of 8 months

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