What you need to know about auto insurance requirements in Colorado
Auto insurance establishes financial responsibility in the event of a car accident, injury or property damage. Every state has its own laws regarding acceptable minimum amounts of coverage and required types of insurance. The state of Colorado only requires drivers to carry liability insurance which covers damages caused by the driver at fault.
Liability Insurance
Colorado law requires drivers to carry at least $25,000 in liability insurance to cover injury to one party, $50,000 to cover two or more people and $15,000 for property damage.
Underinsured/Uninsured Motorists
State law does not require drivers to carry underinsured/uninsured motorist coverage, but a policy will automatically include it unless the policy holder contacts the insurance company in writing to refuse coverage. The insurance carrier must offer coverage amounts equaling the driver's bodily injury liability coverage amounts.
Medical Payments
Since January 2009, Colorado insurance law requires insurance carriers to offer drivers $5,000 in medical payments coverage. This coverage pays for medical expenses of the insured regardless of fault. As with underinsured/uninsured coverage, the policy automatically includes this option unless the driver opts out. The policyholder also has the option of purchasing higher amounts of coverage.
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