Colorado Car Insurance

Going without insurance can cost you much more than carrying the liability coverage that is required by Colorado law.  Bodily injury and property damage coverage (liability coverage) can be purchased as split limit coverage or as combined single limit coverage. The minimum limits of liability required by Colorado law are 25/50/15. If you choose to purchase the coverage as a combined single limit, the minimum allowable is $65,000 under Colorado law.

Liability coverage: $25,000 per person and $50,000 per accident

Property damage: $15,000 per accident

Personal injury protection: $5,000

Rehabilitation procedures: $5,000

Loss of income: $5,000

Comprehensive and collision coverage are not required by Colorado. Colorado law requires collision coverage be offered by an insurance company. However, if you borrowed money to purchase your automobile, your lender may require you to carry this coverage until the loan is paid.

You are not required to carry medical payments or uninsured/underinsured motorist coverage, but all insurance companies are required to offer uninsured/underinsured motorist coverage in an amount equal to your bodily injury coverage or one hundred thousand dollars per person and three hundred thousand dollars per accident, whichever is less.

If you plan to lease an automobile, you should check your lease agreement. Generally, these agreements require that you carry liability coverage in the amount of $100,000 per person, $300,000 per accident and may require you to carry property damage coverage in excess of the Colorado Insurance Law.

Insurance provides protection to consumers by assuming certain risks and promising to pay for financial loss. In Colorado, legal and financial responsibility is based upon the law of negligence. A negligent act which causes damage or injury is legally known as a tort. If an accident is your fault, that is, you are negligent, you are responsible for bodily injury and property damages suffered by the innocent party.

To assure that innocent parties are adequately compensated for their injuries, Colorado law requires that all registered owners of a motor vehicle have complying a liability insurance policy.

In 1997, House Bill 1209 was enacted. This legislation requires the Motor Vehicle Division to contract with a provider to develop and maintain a database of insured vehicles. The bill also requires any insurance company that writes vehicle liability policies in Colorado to report new policyholders and cancelled policies at least monthly to the provider -EFFECTIVE JANUARY 1, 1999.

In 1998, House Bill 1213 was enacted. This legislation requires County Motor Vehicle offices throughout the state to deny vehicle registrations for all passenger, motor home and motorcycle vehicles that do not have proof of insurance when registering those vehicles - EFFECTIVE JANUARY 1, 1999.

The intent of the law is to reduce the rising number of uninsured drivers and vehicles in Colorado.

The Colorado insurance database provides officers with another tool to verify insurance prior to taking further action. If you do not show as insured on the database, the officer has the option of confiscating your driver's license, serving you with a notice that suspends your driver's license in seven days, and issuing a summons for no liability insurance and a court appearance. You also have the option of requesting a motor vehicle hearing.

You must also comply with the Financial Responsibility Act requirements, such as filing an accident report, if not insured, posting security in the amount of damages, filing an SR22 with the Motor Vehicle Division, entering into an agreement to pay the other party, and being released by the other party or being adjudicated not liable for damages. The responding officer also has the option of confiscating your driver's license and serving you with a notice that suspends your driver' s license in seven days.

 If you have a driver's license but are stopped while driving someone else's uninsured vehicle, you are still subject to the same laws. You may still have your license confiscated, be served with a notice that suspends your driver's license within seven days, and be issued a summons for no liability insurance and a court appearance.

 Note: State Car Insurance regulations can change. Please check with your state's Motor Vehicle Department for the most current regulations.