What are state minimums for car insurance in Colorado?

Colorado requires a minimum of 25/50/15 for bodily injury and property damage coverage. The average rate of auto insurance is around $43.33/mo.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 26, 2022

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Things to remember...

  • Colorado drivers are required to meet the state’s legal requirement for car insurance, and some drivers may also have auto lender requirements for car insurance
  • Many Colorado drivers opt to purchase more than the minimum amount of car insurance that is required to take advantage of the financial benefits that it provides
  • Requesting auto insurance rate quotes online is a fast and convenient way to shop for new car insurance rates in Colorado

If you plan to drive in Colorado, you need to be aware of what the state’s car insurance requirements are, and you need to review your current coverage to ensure that you are in compliance with this requirement.

Colorado is one of many states that has passed financial responsibility laws for motorists.

The law states that drivers must take financial responsibility for any damages they cause to others while they are driving.

However, the cost of even a moderate car accident can be eye-boggling, and Colorado has created a liability insurance requirement to ensure that all motorists can at least pay for a certain amount of the damages that they cause to others while they are driving throughout the state.

Learning more about Colorado’s insurance requirements and exploring the need to purchase more than the minimum amount of insurance required can help you to be a more informed consumer.

Compare quotes and coverage options using our free tool above. Enter your ZIP code to get started.

How to Read Car Insurance Requirements

Buying car insurance in Colorado can seem confusing or complicated, and you may be baffled about how to read the insurance requirements. Be aware that the state requirements are listed in terms of coverage type and coverage amount.

The coverage amount is the minimum amount of that specific type of insurance that you are required to buy, and it is also the maximum amount of money that the insurance company will pay out per claim.

These are a few of the more common auto insurance types that you may run across as you look for new Colorado car insurance coverage:

  • Bodily Injury Liability – In the event that you cause injuries to another person while you are driving, bodily injury liability insurance will pay for their medical expenses up to the coverage limits. This is a type of required car insurance in Colorado.
  • Personal Injury Protection (PIP) /Medical Payments –  Bodily injury liability insurance does not pay for your own medical expenses, but PIP does. This is an optional type of coverage, so you must specifically ask for it to be added to your coverage if you want this benefit.
  • Property Damage Liability – This type of car insurance pays for the vehicle repairs for the other party in an accident if you cause the damage. This is a required car insurance type in Colorado.
  • Collision – Collision car insurance pays for your own vehicle’s repairs or for a full replacement only if the car is damaged in a car accident. This is optional coverage.
  • Comprehensive – Comprehensive car insurance pays for your own vehicle’s repairs or for a full replacement if the car is damaged or lost via theft, vandalism, bad weather conditions, an accident, and many other damaging events. This is optional coverage in Colorado.
  • Uninsured and Underinsured Motorist Coverage – This coverage is required in some states, but it is optional for Colorado drivers. It pays for your repairs and medical bills in the event that you are affected by a hit and run accident or an uninsured or underinsured motorist.

Liability insurance is required by state law in Colorado, but some drivers must also purchase optional coverage types as a term of their car loan.

A good example of this law is auto lenders who require drivers to purchase comprehensive insurance. This requirement would be in addition to the state’s liability insurance requirement.


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Minimum Coverage for Colorado

You may be wondering exactly how much insurance you need to buy to comply with Colorado state law. The state requires drivers to maintain coverage that includes:

  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $15,000 for property damage liability per accident

These car insurance requirements are for the typical use of a private vehicle.

If you use your car for business purposes, if it is a classic car that is not driven, or if other special situations apply for your vehicle, research the car insurance requirements in Colorado that pertain to you before you spend time shopping around for new quotes.

The Penalties for Being Uninsured

Colorado strictly enforces the minimum auto insurance requirement, and it uses automated measures to identify those who are not in compliance with this requirement.

If you fail to comply with these minimum auto insurance requirements, you may face penalties that include:

  • A $500 minimum fine
  • Four points added to your driving record
  • A license suspension
  • Community service

Minimum Requirement vs. Recommended Coverage

If you are thinking about updating your auto insurance coverage in Colorado, you may be wondering if you should think about buying more than the required auto insurance coverage.

Be aware that you are financially responsible for all damages you cause while driving, and this includes damages that exceed the limits of your coverage.

If you want to reduce the risk of having to pay high out-of-pocket expenses related to an accident or another event, it makes sense to consider getting a quote for more than the minimum amount of coverage required.

You may also benefit from purchasing optional auto coverage types. For example, you can add towing coverage or rental car reimbursement to your coverage to enjoy the extra benefits that these coverages can provide to you in specific situations.

You need your Colorado auto coverage to be affordable, but you also need it to be protective of your needs.

You can use car insurance discounts, adjustments to your deductible, and other strategies to save money on the type and amount of car insurance coverage that you really need.

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How to Get Car Insurance in Colorado

Many Colorado drivers will benefit from shopping around for new rates every six months. Rates and terms can change periodically, and shopping around helps you to identify potential savings.

You can get quotes the fast and easy way when you shop online. Look for providers who offer competitive rates as well as friendly service, and pay attention to their financial strength to make the best buying decision possible.

Compare car insurance quotes side by side by using our free rate tool below.

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