Colorado Car Insurance Laws: How Much Coverage Do I Need?

Colorado car insurance laws require drivers to carry at least 25/50/15 liability insurance, but most policyholders opt for the added protection of full coverage.
Written by Amy Bobinger
Edited by Jessica Barrett
Liability
car insurance
minimums in the state of Colorado can be summarized as 25/50/15—$25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $15,000 of property damage liability per accident. For better financial protection, Colorado drivers typically purchase higher liability limits and additional types of coverage. 

Car insurance requirements in Colorado 

To legally drive in Colorado, residents must carry
liability insurance
that meets the following limits:
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$25,000 in
bodily injury liability
per person
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$50,000 in bodily injury liability per accident
For legal driving in Colorado, it's essential to meet or exceed state-mandated liability insurance limits.
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Liability-only insurance covers medical expenses for the other driver and their passengers, and damages to the other driver’s vehicle if you are involved in an at-fault accident. Liability-only insurance will not pay for any damages to your vehicle or medical costs for you or your passengers.

Is minimum coverage the most cost-effective option?

Colorado’s minimum liability car insurance requirements tend to be the cheapest insurance option, but 25/50/15 limits leave you extremely financially vulnerable. With such low limits, you’ll face higher out-of-pocket costs for liability claims and personal damages.
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Expert Insurance Agent Insight

avatar
Licensed Insurance Agent
I highly recommend carrying higher limits than state minimums for bodily injury and property damage coverages. Your coverage limits should always exceed your current net worth. I'd consider limits of $100,000/$300,000 as these coverages can better protect you from the damages and injury you may cause in an auto accident.
Coverage recommendations for better protection:
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$50,000 to $100,000 in bodily injury liability per person
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$100,000 to $300,000 in bodily injury per accident
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$50,000 to $100,000 in property damage liability per accident
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Comprehensive coverage
(covers your vehicle for damages from vandalism, theft, severe weather, and more)
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Collision coverage
(covers your vehicle after an accident, regardless of who is at fault)
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Tailor your insurance effortlessly for optimal protection with the Jerry app.
Customize your coverage, including bodily injury liability, property damage liability, comprehensive, and collision.

Coverage for leased or financed vehicles

If you lease or finance your vehicle, you’ll be required to purchase full coverage auto insurance to satisfy lender requirements.
Colorado drivers pay an average of $117 per month or $1,406 per year for minimum liability coverage. Full coverage insurance in Colorado costs $204 per month or $2,446 per year, on average.
Choosing higher liability levels and full coverage protection may mean higher rates, but comparing quotes from different providers can help you find the most affordable price for your Colorado auto insurance coverage. 
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Choosing higher liability levels and full coverage protection may mean higher rates, but comparing quotes from different providers can help you find the most affordable price for your Colorado auto insurance coverage. 
If you’re shopping with
Jerry
, you can adjust your coverage levels and deductibles to see how it impacts your insurance premium in real time. 
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Optional coverage in Colorado 

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Uninsured motorist/underinsured motorist coverage
: Designed to help you if you’re in a car accident caused by a hit-and-run driver, an uninsured driver, or a driver who doesn’t have enough insurance to cover your costs.
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Medical payments coverage (MedPay)
: Helps you cover your personal medical bills after an accident, including emergency room visits and doctor bills. It does not cover lost wages or pain and suffering.
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Roadside assistance
: For help with things like tire changes, towing, battery jumps, running out of gas, and more.
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Accident forgiveness
: Prevents your rates from being surcharged after your first at-fault auto accident (terms may vary).
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Rental car reimbursement
: Helps pay for a rental car for a certain amount of time while your vehicle is in the shop after a claim.
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Gap insurance
: Covers the difference between the actual cash value (ACV) of your financed vehicle and the total remaining on your loan if the vehicle is totaled.
Colorado gap insurance
must not cost more than 5% of your loan amount.

Penalties for driving without insurance in Colorado

Colorado law mandates car insurance—so if you’re found driving without at least the state minimum auto insurance requirements, you could face the following penalties:
Offense
Points added to your license
Minimum Fine
Minimum license suspension
Community service hours
First
4
$500
Until you show proof of insurance
Up to 40
Second
4
$1000
4 months
Up to 40
Third
4
$1000
8 months
Up to 40
You may also be required to file an
SR-22
to get your driver’s license back after a suspension for driving uninsured. An SR-22 filing will lead to insurance premiums well beyond the state’s average, so it’s always best to get insurance before you drive.

FAQs

What is required for Colorado insurance?

Colorado drivers are required to carry 25/50/15 liability car insurance minimums—$25,000 of bodily injury liability per person; $50,000 of bodily injury liability per accident; and $15,000 of property damage liability per accident.

Is it a law to have car insurance in Colorado?

Yes. Colorado’s Motor Vehicle Financial Responsibility Law requires that all drivers in Colorado have a valid insurance policy with minimum liability limits of 25/50/15.

Is Colorado a diminished value state?

Yes. Drivers in Colorado can make
diminished value claims
that will help them recover losses to the value of their motor vehicle after a claim.

Does insurance follow the car or driver in Colorado?

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