Colorado Car Insurance Laws


Waving Colorado state flagFinancial responsibility laws in the Centennial State require that all vehicle owners are properly insured before being legally allowed to drive. To meet these requirements residents only need to buy liability insurance designed to cover damages caused by the policyholder. In addition, vehicle owners are also given the option of including Medical Payments (Med-Pay) coverage as well, but may choose to opt out. In order to be classified as financially responsible, residents must have the following:
  • Liability Coverage:
    • $25,000 Bodily Injury coverage for a single person
    • $50,000 Bodily Injury coverage per accident
    • $15,000 Property Damage liability
As previously mentioned, motorists that purchase Colorado auto insurance are also given the option of including Med-Pay coverage with a minimum limit of $5,000; this would cover a number of justifiable medical expenses following an accident which may include ambulances, doctors, and emergency medical procedures up to the limit of the policy. Motorists should note that as of January 1st, 2009, insurance companies are required to include Med-Pay coverage automatically, meaning that if a resident wishes to opt out of this additional protection they must do so in writing and submit the statement to their policy provider.

Optional CO Car Insurance to Consider

Although Med-Pay coverage is considered optional, residents may wish to consider either including it anyway or even improving upon the basic limits, particularly if said vehicle owner is lacking a healthcare plan. Because of the rising cost of health care, these medical related charges could be expensive after an accident, and being left without an adequate amount of coverage could be financially devastating. It’s also important to note that the basic liability required by the state is fairly limited when it comes to damages sustained by a policyholder’s own automobile. This can be remedied by by searching for multiple auto insurance quotes and choosing a policy that includes additional coverage.

To assist in becoming adequately prepared in the event of an accident, the Colorado Division of Insurance recommends considering additional forms of vehicle protection that would cover damages done to a policyholder’s vehicle that may result from a variety of sources. Such additions could include Uninsured/Underinsured motorist (UM/UIM) or Comprehensive and Collision coverage. According to the Insurance Research Council, nearly 15% of CO motorists in 2009 were driving without the proper vehicle protection plan, giving residents a justifiable reason to think about seeking vehicle coverage. By purchasing UM/UIM a policyholder could be covered against damages caused by such a motorist up to the limits of the policy.
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Comprehensive and Collision coverage exists in order cover damages to a policyholder’s vehicle that may be caused from an accident involving another automobile (Collision) or from damages sustained outside of an accident (Comprehensive), up to the limits of the policy. The comprehensive portion of this addition commonly covers a wide range of damages such as those caused by fire, theft, vandalism, flooding, wind, or falling objects. It’s important to discuss one’s policy, as well as the variety of available options with one’s insurer in order to remain educated and adequately prepared for a number of situations.