Colorado Auto Insurance Guide

Whether you’re driving into Denver on the I-25 to Invesco Field, taking the 550 out of Durango for the San Juan Skyway or traveling the historic Santa Fe Trail from Trinidad to Holly, Colorado offers spectacular scenery and challenging driving. Sightseeing or commuting, car insurance is crucial to being a responsible Colorado driver.

 

Auto Insurance Resources for CO State Residents

As of 2010, there were nearly 2.975 million licensed driver in the Centennial State. The Insurance Research Council estimates that 15% of Colorado’s drivers are uninsured. The Colorado State Patrol, which investigates the majority of traffic accidents in the state, reported a total of 27,213 automobile crashes in 2008, resulting in 3,895 injuries and 289 fatalities. The Colorado State Patrol cited speeding, aggressive driving and alcohol as the leading contributing factors in all accidents. Uninsured, aggressive and drug-impaired drivers are good reasons to make sure you have enough car insurance while living and driving in the Centennial State.

 

Colorado State Minimum Auto Insurance

Colorado state law requires you to carry a minimum amount of car insurance or face severe penalties. Colorado has a tort-based system. If you cause an accident, you can be sued. While Colorado does not require you to carry Uninsured/Underinsured Motorist coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requires shown below:

• $25,000 bodily injury per person per accident
• $50,000 bodily injury for all persons per accident
• $15,000 property damage liability

 

Colorado Car Insurance Laws

• Colorado requires that you carry proof of Colorado auto insurance in your vehicle and produce it if a law enforcement officer asks to see it.
• Driving without auto insurance in Colorado is a class one misdemeanor; a first offense carries a minimum $500 fine and driver’s license suspension, plus 4 points on your record. A second offense fine is $1,000 plus a 4-month license suspension. A third offense carries another $1,000 fine and a 8-month license suspension. There are also reinstatement fees at each level and you may be required to do up to 40 hours of community service. And you will have to file an SR-22 proof of Colorado liability insurance from for 3 years.
• Colorado auto insurers must notify the state monthly of all auto policy changes. If your information doesn’t match the state’s database, you won’t be allowed to register your car or renew your registration.
• Colorado requires all auto insurers to offer you the opportunity to buy Uninsured/Underinsured Motorist Coverage and a minimum of $5,000 medical payment coverage. You are not required to buy either, but must decline the medical payment coverage in writing.

 

Regulating Agency and References

Colorado Division of Insurance
This agency is responsible for regulating vehicle insurance policies sold in Colorado. For more information, visit their website at www.dora.state.co.us/insurance/

Colorado Department of Revenue Division of Motor Vehicles
This is the agency responsible for licensing drivers and registering vehicles. You can learn more about Colorado auto insurance requirements, penalties and related information at www.colorado.gov/revenue/dmv

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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