Colorado Minimum Car Insurance Requirements
Colorado requires all drivers to carry liability insurance in order to drive legally. Failure to comply with these insurance mandates can result in you facing some serious penalties. The minimum liability coverage required in the state of Colorado is as follows:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $15,000 property damage per accident
Listed above is the minimum amount of car insurance Colorado drivers must carry at all times. On top of it, you will have to also provide proof of coverage when asked to by Colorado law enforcement. If you have an auto loan or lease your vehicle, your lender or leasing company may require you to carry additional insurance coverage.
Colorado Liability Coverage
Colorado drivers are legally required to carry liability insurance. this insurance applies to any damage or harm you cause in an accident you are responsible for. This includes covering the other driver’s medical expenses and car repairs. Your liability insurance policy will never apply to you. What you purchase covers the bills of other drivers in an accident you cause. You can purchase additional insurance in order to cover your property and injuries.
Colorado Diminished Value Policy
Colorado is one of 15 states that are a diminished value state meaning that drivers can recover diminished value of their vehicle from the at-fault driver’s insurance company. After an accident, even if your car is completely repaired, it has still lost a good portion of its value. In Colorado, if you go to sell your vehicle following the accident, you will be able to recoup the losses you may have experienced from the other person’s insurer.
But keep in mind that there are some requirements you must meet in order to be able to file a diminished value claim in the state of Colorado. Those requirements are as outlined below:
- You cannot receive compensation if the accident is your fault
- The statute of limitations for filing a diminished value claim is 3 years in Colorado
- Keep a good record of the accident as you will have to provide documentation to make a claim
- Colorado has uninsured motorist coverage for these types of claims
Car Insurance Limits in Colorado
A limit is the amount of money your insurance will payout after an accident. Liability insurance minimum limits are determined by the state and cover three different categories. For the state of Colorado, their minimums are expressed as 25/50/15 and cover the following:
- Bodily injury per person is the maximum amount your insurance company will pay for injuries you have caused in an accident.
- Bodily injury per accident refers to the amount that an insurer will pay for all injuries you caused during an accident.
- Property damage per accident is the maximum amount of money your insurer will pay for the damages you have caused during the accident.
Is Colorado’s Mandatory Insurance Minimums Enough Coverage?
The mandated liability insurance minimums for the state of Colorado are about average compared to the other states. Despite being average, it is still not great insurance coverage. It is very much recommended that you purchase beyond the state-mandated minimums. The cost for auto repairs and medical assistance can rack up very fast. While it may seem substantial when you are shopping for insurance, and the premiums could be appealing, you could be paying a lot more post-accident than you wouldn’t have to if you had expanded your coverage.
Driving Without Proof of Insurance in Colorado
As previously mentioned, failing to carry the mandated liability insurance minimums in the state of Colorado can result in some pretty serious penalties. The chart below outlines what you could be facing if you lack the proper auto insurance required for driving.