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Colorado Car Insurance Information

Requirement : Yes

Financial responsibility is required in Colorado . Drivers must have a minimum of liability insurance.


Minimum Coverage Car Insurance Requirements:

A minimum liability insurance policy is required:

  • $25,000 for bodily injury/death to one person.
  • $50,000 for bodily injury/death per accident.
  • $15,000 for damage to property.

Other Car Insurance Coverage Options:

Liability coverage is the only requirement for Colorado motorist to have, there are several other types of coverage available to drivers:

  • Collision – Covers damages to your vehicle due to an accident.
  • Comprehensive – Covers damages due to your non-accident related damages to your car, such as inclement weather.
  • Uninsured/Underinsured motorist coverage – Covers you in case you’re involved in an accident with an uninsured party, or they don’t have adequate coverage.
  • Medical payment coverage – Must be offered as part of any Colorado car insurance policy, but you can opt out.
    • Med pay is offered in increments of $1,000 towards accidental injuries.
  • Rental reimbursement – Reimburses you if you have to rent a car after an accident.
  • Gap coverage - If your vehicle is loaned or leased and totaled, Gap insurance may pay for the difference between the cash value of the vehicle and the unpaid balance of the loan or lease.
  • Roadside assistance/towing coverage – Typically adds coverage for towing, tire changes, lockout services, and more.

  • Note: Comprehensive and or collision coverage is optional, unless the vehicle is being financed or leased, the lending/leasing agency may require you to purchase comprehensive and collision coverage.

Other Forms of Financial Responsibility:

Other legal ways around buying car insurance include:  

    • $35,000 cash or securities deposit with the state comptroller.

Proof of Insurance: Yes

You must carry proof of financial responsibility with your vehicle at all times, you must also have proof of insurance in order to renew your registration.  

Valid forms of proof of financial responsibility include:

  • Insurance card.
  • Copy of insurance policy.
  • Printout or fax of insurance policy.
  • Image of insurance card on cell phone.
  • Email from insurer.
  • Certification of financial responsibility.

Getting Pulled Over:

  • If you’re pulled over by a police officer, you must show your proof of insurance, along with your driver’s license and car registration.

Violations, Fines & Penalties:

You are required to have proof of car insurance in the state of Colorado , if you are pulled over and cannot provide proof of insurance, or other forms of financial responsibility, you may face the following penalties:

  • 4 points on your driver’s license
  • $500 minimum fine
  • License suspension
    • First offense: license suspension until you can show proof of insurance.
    • Second, subsequent offenses: license suspension for up to 8 months.
  • Required community service

SR-22:

You may be required to file an SR-22 from your insurance provider if:

  • Your license has been suspended or revoked
  • An SR22 certificate only certifies proof of insurance of minimum requirements, it is not insurance.

Credit Scores & Determining Your Insurance Premium :

All Colorado drivers are required to have car insurance, however, insurance providers are reserved the right to deny coverage to high-risk drivers. Drivers unable to get private coverage can purchase insurance through the Western Association of Automobile Insurance Plans (WAIP).

Other factors that may be used to determine your premiums include:

  • Age
  • Gender
  • Driving record
  • Make/model/year of your vehicle
  • Marital status
  • Neighborhood or city of residence

Discounts : Yes

Discounts available in Colorado:

  • Driver education, training discount
  • Good driver discount
  • Good student discount
  • Vehicle safety discount
  • Multi-policy discount

Cellphone Use:

Drivers under the age of 18 years old, or with a learner’s permit are banned from all cellphone use while driving. All drivers are banned from sending text messages while driving. Cell phone and texting violations are considered primary offenses. Offenders can face a $50 fine for the first offense, and a $100 fine for subsequent cellphone violations.


Colorado Minimum Coverage Laws

Carriers in Colorado

Full Insurance Laws for Colorado

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