Drivers in the US have an obligation to be insured to the minimum standards set out by their state. Keep reading here to learn more about the Colorado auto insurance requirements. And if you’re not sure if you have the right coverage, contact Affordable Insurance. We’ll make sure you have what’s needed to meet Colorado auto insurance requirements.
According to state law, you must have the following minimum liability limits:
Bodily Injury Liability of at least $25,000 per person or $50,000 per accident. This is also referred to as 25/50. Bodily injury liability insurance is required when you cause an accident that injures or kills another person. The insurance is used to cover the costs of medical treatment or lost income compensation. It can also be used to cover your legal fees if the other party sues you concerning their injuries, losses or suffering.
Although the state of Colorado sets the minimum for Bodily Injury Liability at 25/50, many insurers recommend coverage with a minimum of $100,000 per person and $300,000 per incident to minimize the risk of you ever having to pay out of pocket for damages caused to someone else.
Colorado law mandates property Damage Liability of at least $15,000 per occurrence. This will cover the cost of damages incurred to somebody else’s property. Usually, this refers to someone’s car, but it can also cover damages to a home, fence, garden or other structures.
Underinsured or Uninsured Motorist coverage in Colorado is offered by your insurer at the same rate as the Bodily Injury Liability limits you elect. This means you will receive a minimum of $25,000 per person or $50,000 per incident, but a higher amount is available. This type of insurance is used to cover your expenses if a driver with insufficient or no insurance hits you.
Medical Payments coverage is offered by your insurer at a minimum of $5,000 according to the state law of Colorado. If you choose not to accept this particular insurance, you must decide to opt out of it in writing or by phone, or online, if this is how you purchase your insurance. Otherwise, it will be automatically applied, and you will be charged a premium for it.
Colorado law does not require Collision Coverage, but you can opt to pay for it. This will cover the costs of damage to your vehicle if it hits another car, a wall, signpost, fire hydrant or another object. You can select the deductible or the maximum cost that you will pay out of pocket before the insurance pitches in to pay for the expenses.
Comprehensive Coverage is another type of optional insurance that you are not obliged by law to have. This will cover the costs of theft and other non-collision related damages such as hail, fires, natural disasters, falling objects or damage from wildlife. Although the law does not require it, banks and finance companies may require you to purchase comprehensive insurance if you have an auto loan.
A driver that fully understands their rights and responsibilities when it comes to auto insurance requirements in Colorado is much less likely to face unexpected costs if they get into an accident. With the help of Affordable Insurance, you can rest assured that you’ll never get caught without the right coverage.