Colorado Car Insurance Laws

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The state of Colorado requires drivers to carry a minimum amount of liability car insurance on their vehicles.
The insurance minimums in Colorado can be briefly summarized as 25/50/15 (aka, $25,000 of bodily injury liability per person; $50,000 of bodily injury liability per accident; and $15,000 of property liability per accident.
The car insurance shopping app Jerry has put together all the information that you need to know about car insurance minimums in Colorado and how to find cheap car insurance fast. Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete, and you’ll immediately get car insurance quotes for coverage similar to your current plan.
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What insurance do I need in Colorado?

If you are a motorist who lives in Colorado, there is a legal minimum amount of car insurance that you are required to carry. You also need to have proof of insurance available and at hand whenever you are driving.
If you are caught driving without car insurance in Colorado, you could face hefty fines or other penalties.
Some lenders might also require optional coverage like comprehensive insurance and collision insurance, in addition to the minimum insurance requirements for the state. You won’t be fined if you don’t take out these full coverage options—but you could forfeit your lease or lending agreement.
Here is a more detailed breakdown of the minimum amount of car insurance that the state of Colorado requires all motorists to carry.
Colorado minimum car insurance
Minimum liability coverage25/50/15
Bodily injury per accident$25,000
Bodily injury per person$50,000
Property damage per accident$15,000
Key Takeaway Colorado drivers need to carry a minimum amount of liability insurance and proof of coverage to avoid fines and penalties.

Liability insurance in CO

Liability insurance is a type of insurance coverage that is legally required in the state of Colorado.
Liability insurance only helps cover the costs of medical care and property damage for the other party if you cause an accident. Full coverage options like comprehensive and collision insurance will help cover your own costs, but you will have to purchase them in addition to your minimum coverage.

What are the mandated car insurance limits in Colorado?

The minimum mandated insurance in Colorado can be summarized as 25/50/15. States set their car insurance laws and mandatory minimums. The insurance limits refer to the maximum amount that an insurance company will pay out if you cause an accident.
Drivers in Colorado need to carry three types of liability insurance. If you choose to purchase the minimum car insurance in Colorado, this is how much coverage you will have to have if you cause an at-fault accident.
$25,000 of bodily injury liability coverage per person
Your insurance company will pay up to $25,000 to cover the cost of injuries for each person injured.
$50,000 of bodily injury liability coverage per accident
$50,000 is the total amount that your insurance company will payout to cover the costs of injuries in an at-fault accident.
$15,000 in property damage liability per accident
Your insurance company will pay up to $15,000 to cover the cost of property damage associated with an at-fault accident.
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Should I get more coverage than Colorado’s required insurance minimum?

The mandated insurance limits in Colorado are similar to many other states, but that doesn’t mean it will be enough. If you cause an accident, you might have to pay the remainder of the out-of-pocket costs.
For example, $15,000 of property damage liability will often not cover the full cost of a totaled car. The same goes for bodily injury expenses, which can easily exceed $50,000.
You can use the free insurance shopping app Jerry to increase your liability limits and tailor your car insurance to include the coverage you need to feel protected.
Key Takeaway Colorado’s minimum car insurance may not be enough to cover all of your expenses after an accident.

What is the penalty for not having car insurance in Colorado?

Colorado imposes steep penalties for drivers caught without insurance.
Penalties for not having car insurance in Colorado
OffensePoints added to your licenseMinimum fineMinimum license suspensionCommunity service hours
First4$500Until you show proof of insuranceUp to 40
Second4$10004 monthsUp to 40
Third4$10008 monthsUp to 40

Additional coverage options

In addition to the minimum liability insurance limits you need to drive in Colorado, you can choose to purchase additional coverage options, including the following:

Medical payments (MedPay) insurance

Medical payment insurance will help cover medical expenses for you, your family, and your passengers if you get in an accident.

Uninsured/underinsured motorist coverage

If you get an accident with a driver who doesn’t have coverage or doesn’t have enough coverage, uninsured/underinsured motorist insurance will help cover medical costs.

Collision insurance

Collision insurance will help cover the cost of the damage to your car after an accident or collision with another object.

Comprehensive insurance

Comprehensive insurance will help cover the cost of non-collision-related damage to your car.

Gap insurance

If your loaned or leased car is totaled after an accident, gap insurance insurance will help make up the difference between your payout and any additional money you owe on your loan.

Rental car reimbursement insurance

Rental reimbursement insurance will help cover the costs of a rental car or alternate transportation if your vehicle requires repairs after a claim.

Roadside assistance insurance

Many insurance companies will offer roadside assistance coverage that will help cover the costs of a tow, battery services, gasoline deliveries, or other standard roadside services.
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Why is Colorado considered a diminished value state?

Drivers in Colorado can make diminished value claims that will help them recover losses to the value of their vehicle after a claim. If you sell your car after an accident, you can make a diminished value claim through the at-fault driver’s insurance company.
A car will lose some of its resale value after an accident—even after it is restored to the same condition that it was in before the accident.
Colorado is one of 15 states that allow drivers to make diminished value claims so you can recoup any lost value if you decide to sell your car after a claim.
You need to meet the following criteria to make a diminished value claim in Colorado:
  • You were not found to be at fault in the accident
  • You can provide reliable documentation, like proof of your car’s value, the repair record, and photo evidence
  • It hasn’t been more than three years since the claim was made
  • The at-fault driver had insurance
Key Takeaway Diminished value claims can help make up for any lost value after repairs.

How to get cheap car insurance in Colorado

The smart insurance shopping app Jerry makes it easy to find cheap car insurance in Colorado fast.
It’s this simple: download the Jerry app or go to getjerry.com. In less than 45 seconds, Jerry collects all of your information from your existing insurer.
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This Jerry user was thrilled with their experience, giving the app five stars:
“Jerry saved me over $500 in minutes! At first, I was skeptical because it all seemed too good to be true. However, I was pleasantly surprised to discover that the process was super quick and easy, and Jerry handled everything - from canceling my old policy to establishing my new one! I can’t recommend this app highly enough. Thanks, Jerry!”—Jerry user
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Frequently asked questions

Does insurance follow the car or driver in Colorado?

Colorado insurance follows the car, not the driver. Your vehicle is covered by your insurance as long as another driver is listed on your policy or given explicit permission to drive your car.

Is Colorado a no-fault state for car insurance?

No. Colorado was once a no-fault state but changed to an at-fault state in 2003. This means that you will have to file your insurance claims through the at-fault driver’s insurance company.
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