Colorado Car Insurance
Learn more about Colorado Car Insurance
Car insurance requirements differ between each state within the U.S. so knowing which laws pertain to your state is crucial. Colorado car insurance laws state that every driver must be insured and be carrying at least the mandatory minimum amounts. Deciding on how much coverage you should purchase depends on what your needs are and other factors including your driving history, age, vehicle type, number of drivers within your household, and so forth.
So take a look at what the auto insurance coverage types are and determine how much you will need.
Bodily Injury Liability (BI)
This type of coverage protects you if you are at-fault that may have injured someone or caused a fatal accident. Colorado requires that all drivers must carry the following minimum amounts:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
*Many financial experts recommend those to carry at least $100,000 in bodily injury and $300,000 to get fully protected. Consider what assets you have to protect and what you can afford before accepting an amount.
Property Damage Liability (PD)
This type of coverage protects you when you damage someone else’s property. This is not limited to the other person’s vehicle, it could also be a building, utility pole, garage, etc. Colorado’s minimum amount for property damage liability is:
- $15,000 limit per occurrence
Uninsured/Underinsured Motorist (UM/UIM)
These 2 coverage options protect you from any medical or other types of damage costs when the other party, who is at-fault, does not carry any auto insurance.
Colorado laws state that both Uninsured/Underinsured Motorist required amounts is the same as Bodily Injury Liability which are:
- $25,000 per person for Uninsured Motorist
- $50,000 per person for Underinsured Motorist
Medical Payments (Med Pay or MPC)
Colorado auto insurance companies are required to offer you $5,000 in coverage unless you decide to opt out. If you decide that you do not want Medical Payments coverage, then you need to put it in writing and give it to your insurance provider.
Collision
This coverage protects you from any accident with another vehicle, wall, fire hydrant, or other object(s). This coverage is not required by Colorado law but your bank may require it if you have a loan with them.
Comprehensive
This coverage protects you in case your car is stolen or damaged that does not involve a collision. Factors like the weather (hail), fire, theft, flood, earthquake, explosion, wildfire (deer) apply.
Overall, if you can afford more auto insurance coverage, then it is highly recommended that you purchase more. Unexpected accidents happen all the time, even if you are a careful driver. And they can be quite costly, so paying a monthly or annual fee for auto insurance can save you financially when you look at the big picture.
To find better auto insurance rates in Colorado, enter your zip code below to get insurance quotes. Compare and see which policies will benefit you the most, and which are the most affordable. You could end up saving more than hundreds of dollars if you do so, and it only takes a matter of minutes!
Sources:
Colorado Auto Insurance Requirements
Colorado Auto Insurance
