What are the Minimum Car Insurance Requirements in Colorado?

Every licensed driver in the U.S. is legally obligated to carry some form of car insurance. This ensures that every driver is covered in the event of a car accident. Drivers who don’t have car insurance pay hefty penalties if they’re involved in an accident.

Penalties for driving without insurance

Attempting to save money by failing to get insurance isn’t worth the risk.

Why not?

For starters, any damages or injuries sustained in an accident are the responsibility of the driver at-fault. So if you cause a crash and aren’t insured, then you are personally on the hook for covering the property damage, medical expenses and other damages.

In addition, failure to hold even the minimum insurance coverage can result in the following penalties:

• 4 points on your driving record (your license is suspended after 16 points)
• A minimum fine of $500 (up to $1,000 for additional offenses)
• Possible license suspension (until you show proof of insurance on the first offense, or up to 8 months for additional offenses)
• Up to 40 hours of community service

On top of these penalties, drivers often face much higher insurance rates once they do apply for coverage after not having a policy.

What are the minimum insurance requirements?

Not every state has the same criteria for car insurance. Each state is responsible for setting their own limits on certain types of coverage.

Colorado has a fault-based system. Drivers seeking compensation after an accident must first establish who’s at fault before any insurance claim will be paid. Sometimes it’s one, sometimes it’s both parties.

Regardless of who’s at fault, the one liable must pay for any resulting damages and injuries. This is normally done through their insurance company. Also, there’s a minimum coverage that all Colorado drivers must have, no matter what their policy is.

• Bodily injury (BI). $25,000 for every person and $50,000 for every accident. This covers accidents involving the death or injury of another person. However, insurers recommend a 100/300 policy ($100,000 per person and $300,000 per occurrence). Financial experts recommend carefully weighing what you can afford before choosing.
• Property damage (PD). $15,000 per incident. PD liability coverage insures you for damage done to someone else’s property. Typically, this is a vehicle, but it also covers damage to buildings, utility poles and other physical property.

Most drivers should think about expanding their policy rather than reducing it. This gives drivers better protection and saves them money in the long run. There’s also insurance available for motorcyclists—actually, it’s also required by law for them to have insurance.

Insurance requirements for Colorado motorcycle operators

All motorcycles, motor-powered bicycles, scooters and any other engine-powered mode of transportation with 3 wheels or less (excluding farm tractors) must be insured. Colorado residents who own these 2- and 3-wheeled vehicles are legally required to register them.

Owners must also make sure they meet state requirements, which are the same for car drivers. Motorcyclists must carry a 25/50 coverage policy with $15,000 for property damage. Failure to do so can result in the same penalties as driving a car without insurance:

• $500 fine
• 4 points on their driving record
• A possible suspension for the first offense