Colorado Car Insurance Requirements in 2026

Colorado car insurance requirements at a glance

Coverage	Minimum Requirement in Colorado
Bodily injury liability	$25,000 per person/$50,000 per accident
Property damage liability	$15,000

Colorado car insurance requirements explained

Colorado requires drivers to carry car insurance with limits of $25,000 per person and $50,000 per accident for bodily injury, and $15,000 for property damage.^[1] This is known as 25/50/15 coverage.

While the bodily injury limits are comparable to those required by other states, nearly half of all states require at least $25,000 in property damage liability coverage.

Because Colorado is an at-fault state, it doesn’t require medical payments or personal injury protection (PIP). The state repealed its no-fault insurance law in 2003, meaning injured drivers can file a claim against the at-fault driver’s insurance instead of their own.^[2]

Although insurance companies must offer $5,000 in medical payments coverage, you can decline it in writing.

Colorado bodily injury liability insurance requirements

Colorado requires 25/50 limits for bodily injury liability coverage, which is comparable to the requirements of many states.

Say you have an insurance policy with the state-mandated minimum limits and cause a crash that injures two people. Your insurance company pays up to $25,000 toward each person’s medical bills, but no more than $50,000.

If the costs are higher, you’ll be responsible for covering the shortfall out of pocket.

Colorado property damage liability insurance requirements

Colorado requires at least $15,000 in property damage coverage per accident.

For example, say you cause an accident that totals the other driver’s $30,000 sedan. Your insurance policy covers only $15,000 of the replacement cost, leaving you responsible for the $15,000 difference.

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Are Colorado’s car insurance requirements sufficient for most drivers?

Colorado’s minimum limits may not be sufficient for many drivers. Beyond the potential bodily injury and property damage liability coverage shortfalls, Colorado doesn’t require uninsured motorist (UM) or underinsured motorist (UIM) coverage.

An estimated 17.5% of Colorado drivers don’t have insurance, according to the Insurance Research Council. Without UM coverage, you’d have to pay for your damages out of pocket if an uninsured driver causes an accident.

Here’s a look at what adequate coverage might look like for Colorado drivers.

Coverage Type	Recommended Amount	Why?
Bodily injury liability	$100,000 per person/$300,000 per accident	Higher liability limits offer more protection against serious injury claims that could threaten your financial stability
Property damage liability	$50,000–$100,000	The state-mandated minimum isn’t enough to replace a new car if you cause an accident
UM/UIM	Match your liability limits	Nearly one in five Colorado drivers doesn’t have car insurance
Comprehensive	Choose a deductible, commonly $250, $500, or $1,000	Pays to repair or replace your vehicle after a non-collision event, such as theft, vandalism, or hail
Collision	Choose a deductible, commonly $250, $500, or $1,000	Pays to repair your vehicle after an at-fault accident
Medical payments	$5,000–$10,000	Pays medical bills after an accident, regardless of fault, and before your health insurance kicks in

Other car insurance requirements to be aware of in Colorado

You may need more than the state-mandated minimum car insurance limits. For example, lenders and leasing companies typically require comprehensive and collision coverage if you finance or lease your vehicle.

If you have a driving under the influence (DUI) conviction or got caught driving without insurance, you may need an SR-22. This is a certificate your insurance company files with the Division of Motor Vehicles (DMV) within the Colorado Department of Revenue that proves you have coverage.

And if you drive for a rideshare company like Uber or Lyft, a standard car insurance policy won’t protect you. Many insurance companies offer a rideshare endorsement that covers you while you’re waiting for a ride request.

Colorado law also requires transportation network companies or their drivers to secure coverage that kicks in whenever a driver is logged into the network. It also requires at least $200,000 per person and $400,000 per occurrence for UM coverage when a driver is engaged in a prearranged ride.^[3]

How Colorado’s car insurance requirements influence rates

Colorado drivers pay an average of $1,159 per year for liability-only coverage and $2,604 for full coverage, according to Insurify data.

The state requires relatively low property damage liability limits and doesn’t mandate UM, UIM, or medical payments coverage. This means that while a state-minimum policy in Colorado costs less, carrying lower limits shifts more risk onto you.

For example, if you hit a $45,000 vehicle, your state-minimum property damage liability limit won’t pay more than $15,000 to repair or replace it. This means you’re liable for the balance.

Cheapest state-minimum required car insurance in Colorado

The below rates in Colorado are estimated rates current as of: Wednesday, October 21 at 7:44 AM PDT. 

Insurance Company	Average Monthly Quote
State Farm	$55
Sun Coast	$60
Progressive	$65
The General	$65
Root	$71
USAA	$71
Mile Auto	$73
American Family	$76
GEICO	$76
Bristol West	$84
Auto-Owners	$98
Trexis	$100
Mendota	$101
Safeco	$106
National General	$109
Dairyland	$111
Allstate	$114
Direct Auto	$116
Insurify Car	$124
Travelers	$138
Farmers	$144
Liberty Mutual	$168

Disclaimer: Table data sourced from real-time Colorado car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Colorado may vary based on the policy buyer's unique driver profile.

Colorado car insurance laws and related programs

Colorado passed Senate Bill 21-169 in 2021. This law restricts insurance companies from using algorithms, predictive models, or external consumer data in ways that unfairly discriminate against protected groups in insurance pricing and underwriting.^[4]

The state has an assigned-risk program: the Colorado Motor Vehicle Insurance Plan. This program insures drivers who’ve been turned down for coverage in the standard market due to driving history, a DUI, or a lapse in insurance coverage.

If you can’t find coverage on your own, a licensed agent can apply on your behalf. The state then assigns you to a participating insurance company.

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Penalties for driving without insurance in Colorado

It’s against the law to drive without insurance in Colorado. These are the penalties for first and subsequent offenses:

• First offense: Four points against your driver’s license, a minimum $500 fine, and license suspension until you show proof of insurance to the DMV

• Second offense: Four points against your driver’s license, a minimum $1,000 fine, and a four-month license suspension

• Third and subsequent offenses: Four points against your driver’s license, a minimum $1,000 fine, and a license suspension for eight months

The courts may also tack on a 40-hour community service requirement.

Other car insurance coverages worth considering in Colorado

Beyond the coverages recommended above, you may want to consider the following to protect yourself as a Colorado driver:

• Gap insurance: Guaranteed asset protection coverage pays the difference between your car’s value and what you still owe on the loan if someone steals your car or it’s totaled in an at-fault accident. Since Colorado ranks No. 11 in the nation for motor vehicle thefts, according to Insurify data, this coverage is valuable for drivers with newer, financed vehicles.

• Roadside assistance: Driving on mountain passes and long stretches between Colorado towns can make a dead battery or a flat tire more than a minor inconvenience. Roadside assistance pays for towing, flat-tire changes, and other emergency services if your car breaks down.

• Rental reimbursement: An optional coverage add-on, rental reimbursement pays for a rental car if your vehicle is out of commission due to a covered claim. If you live in the Denver metro area, public transportation may be a feasible option while your car is in the shop. But public transportation is limited outside larger cities.

Colorado car insurance requirements FAQs