Everything You Need to Know

Colorado car insurance laws require all drivers to carry auto insurance. Anyone who drives or parks a vehicle on public roadways in Colorado must carry proof of insurance. Driving without the proper auto insurance puts you at risk of financial responsibility after a traffic accident.

Colorado Minimum Requirements

Car insurance minimums in Colorado are comparable to minimums found in other states. Like most states, the minimum car insurance in Colorado is not enough to fully cover you and your property. Emergency care costs alone could exceed your bodily injury liability limits, and the property damage limits are much lower than the average cost of replacing a new car.

These are Colorado’s auto insurance minimum requirements, according to Nolo:

• Bodily injury liability: $25,000 per person and $50,000 per accident
• Property damage liability: $15,000 per accident

What If I Don’t Carry Car Insurance?

Colorado is very strict on uninsured driving. According to McdivittLaw, if you are caught driving without the proper insurance, the following penalties will apply:

• Four points will be added to your driver’s license.
• You will be required to perform up to 40 hours of community service.
• If it is your first offense, you’ll receive a minimum fine of $500, and your license will be suspended until you obtain proof of insurance.
• For your second offense, you’ll face a minimum fine of $1000 and a four-month license suspension.
• After a third offense, you’ll face a minimum fine of $1000 and an eight-month license suspension.

Another thing to avoid is insurance fraud. You could be charged with insurance fraud if you commit the following offenses:

• Filing false injury claims
• Forging official documents
• Withholding vital information
• Filing false damage claims
• Making a false statement
• Intentionally involving yourself in an accident
• Purchasing insurance from unlicensed brokers

A conviction for insurance fraud in Colorado includes:

• One to four years of incarceration
• A class 5 criminal felony charge
• Fines of up to $100,000
• Minimum parole of two years

Coverage Options in Colorado

According to TheZebra, Insurance providers offer several types of insurance coverages in Colorado, including:

• Comprehensive: Comprehensive coverage pays for repair and replacement when your vehicle was damaged by an event considered out of the driver’s control, such as weather, theft, vandalism, or striking an animal on the roadway.
• Collision: This insurance is subject to a deductible and covers repair and replacement costs when you collide with another vehicle or a static object such as a tree or curb.
• Medical payments: Regardless of who is at fault in an accident, this coverage will cover your medical costs, loss of services, child care, and funeral expenses.
• Gap coverage: If you have financed your vehicle, gap insurance, also called loan/lease payoff, will pay off the difference between what you owe and the actual cash value of your vehicle after it’s totaled.
• Roadside assistance: This optional coverage reimburses the policyholder for locksmiths, refueling, towing, and more.
• Uninsured and underinsured motorist: This type of insurance covers you when the at-fault driver doesn’t have insurance or their insurance is insufficient.
• Rental reimbursement: This coverage reimburses the cost of a rental vehicle when yours is in the shop for more than 24 hours.

Colorado Is a Fault State

Colorado is considered a “fault state.” This means the driver who caused a traffic accident is financially responsible for any expenses related to property damage or injuries sustained during the crash. This includes loss of income, death, vehicle damage, and damage to city property. The at-fault driver’s insurance company will pay up to its policyholder’s auto insurance limits, but everything beyond those limits must be paid out of pocket by the policyholder, according to Bankrate.

What Determines My Car Insurance Rates in Colorado?

Full coverage auto insurance costs an average of $2004 annually in Colorado, while a minimum coverage plan costs policyholders $466 per year. Auto insurance in Colorado is more expensive than the national average, which comes in at $1738 for a full coverage policy.

According to Einsurance, car insurance rates are regulated by the CDI or Colorado Division of Insurance. Insurance providers may change premiums or provide discounts on many factors:

• Your vehicle’s make, model, and year
• Your insurance history
• How many miles you plan to drive
• Your past violations and accident history
• Your age, gender, and marital status
• Where you live, work, or park your car
• Your driving experience
• If your vehicle is used for business

Follow these steps to lower your monthly premiums:

• Apply for any available discounts offered by your insurance provider. Some common discounts are good or safe driving discounts, anti-theft devices discounts, paperless billing or online discounts, hybrid or EV discounts. You may also be able to bundle your homeowners or renters insurance to get cheaper rates.
• Shop around for better premiums. When purchasing a new insurance policy, you should compare prices from at least three different insurance companies.
• Drop coverage you no longer use or won’t need.
• Contact your local DMV to see if your state offers any low-cost coverage programs.

New Laws That May Affect Your Auto Insurance

Colorado recently enacted several new laws that may affect your auto insurance policy.

• In 2009, Colorado passed a law banning the use of cell phones at all times for motorists under 18. Cell phone use is permitted only for emergencies such as reporting a crime, during a fire, after a traffic accident, if someone fears for their life, and reckless driving.
• Colorado redefined driving under the influence to include illegal limits of THC, the active ingredient in cannabis, in 2013. A driver will be charged with a DUI if they are found to be driving with five or more nanograms per milliliter of THC in their bloodstream.
• In 2014, a motorist’s right to contest reasonable suspicion for a DUI stop was reinstated.

Every major insurance company operates in Colorado, which makes insurance quotes quick and easy. Head online to your favorite insurance provider’s website to get a free and instant quote today.

Check this out if you need additional information, resources, or guidance on car insurance.

Sources:

Car and Driver Insurance Hub | caranddriver.com

Full Coverage Insurance: Everything You Need to Know | caranddriver.com

State Minimum Car Insurance: Everything You Need to Know | caranddriver.com

Colorado Car Insurance Laws | nolo.com

A Complete Guide to Colorado Auto Insurance Laws | mcdivittlaw.com

Colorado Car Insurance Laws | thezebra.com

Colorado Car Insurance Laws | bankrate.com

Colorado Auto Insurance Guide |einsurance.com

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