If you are a driver in Colorado, you should understand the state’s car insurance laws and coverage requirements. Colorado uses an “at-fault” insurance system, which means that a driver who causes an accident is financially responsible for any resulting damages to victims.
To operate a vehicle on Colorado roads, drivers must carry a minimum amount of liability insurance coverage to cover damages in the event of a car crash. Many choose to purchase additional protections beyond the minimum coverages for greater financial security.
Colorado is an At-Fault Insurance State
In an at-fault state like Colorado, a driver who causes a crash is responsible for paying the resulting damages, either through their insurance provider or out of pocket.
After a collision, injured parties have three main options for seeking compensation:
- File a claim with their own insurance company (if the policy includes first-party coverage like MedPay or uninsured motorist),
- File a claim with the at-fault driver’s insurance company, or
- File a personal injury lawsuit against the at-fault driver.
This fault-based approach is different from “no-fault” states, where each driver typically seeks compensation from their own insurer first, regardless of who caused the motor vehicle accident.
Minimum Car Insurance Requirements in Colorado
Colorado law requires all drivers to carry a minimum level of liability insurance. This insurance pays for injuries or damages that the insured driver causes to other parties in a crash.
The minimum required amounts are:
- $25,000 for bodily injury or death to one person in an accident,
- $50,000 for total bodily injury or death to all persons in one accident,
- $15,000 for property damage per accident.
These are often written as 25/50/15 coverage. Failure to maintain minimum liability insurance can result in penalties, including but not limited to:
- Fines
- Suspension of your driver’s license
- Impoundment of your vehicle
- Reinstatement fees and higher insurance premiums
In addition to liability coverage, Colorado drivers must also be offered uninsured/underinsured motorist coverage (UM/UIM) and medical payments coverage (MedPay). However, drivers are not required to purchase these additional coverages.
Car Insurance Requirements in Colorado
Optional Coverages Available in Colorado
Minimum liability insurance is required by law. However, it may not provide enough protection in the event of a serious accident.
Colorado drivers often purchase optional coverages, including:
- Collision coverage pays for damage to your own vehicle after an accident, regardless of who was at fault.
- Comprehensive coverage covers damage to your vehicle from non-collision events such as theft, vandalism, fire, or natural disasters.
- Uninsured/Underinsured Motorist Coverage – helps cover your medical expenses and other damages if you’re injured in an accident caused by an uninsured driver or a driver with insufficient coverage.
- Medical payments coverage (MedPay) covers medical expenses for you and your passengers after a crash.
Having these optional coverages can help mitigate major out-of-pocket expenses and ensure a smoother physical and financial recovery after an accident.
Contact a Colorado Car Accident Lawyer for Help with an Injury Claim
If you were injured in a car accident in Colorado, you could be entitled to compensation for your medical bills and other damages. Colorado’s at-fault insurance laws allow you to pursue damages from the party who caused your car accident.
An experienced Englewood car accident lawyer can help you understand your rights and identify all applicable insurance coverages that help cover your damages after a crash, including your coverages and the at-fault driver’s. Contact Legal Help in Colorado to schedule a free consultation to discuss your legal options after a car crash.