Colorado Minimum Coverage Car Insurance: Requirements and Costs (2024)

Name: Colorado Minimum Coverage Car Insurance: Requirements and Costs (2024)
Item: Colorado Minimum Coverage Car Insurance: Requirements and Costs (2024)
Author: Mark Fitzpatrick

Colorado requires minimum coverage liability limits of 25/50/15. The average annual cost of minimum coverage car insurance is $644 or about $54 monthly.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Venus Zoleta

Updated: December 3, 2024

Advertising & Editorial Disclosure

Colorado's minimum car insurance requirements include $25,000 bodily injury liability per person, $50,000 per accident and $15,000 for property damage liability. Colorado is an at-fault state, meaning the driver at fault for an accident is responsible for covering any resulting damage and injuries.

The average monthly cost of minimum coverage is around $54. While this provides a basic level of protection, motorists may want to explore beyond the cheapest car insurance in Colorado to ensure a more comprehensive policy that fits their needs.

TABLE OF CONTENTS

Colorado Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Colorado
Cheapest Companies in Colorado for Minimum Coverage
Add-On Coverages in Colorado
Penalties for Driving Without Insurance in Colorado
FAQ

Why Trust MoneyGeek? We analyzed data from Quadrant Information Services and the Colorado Division of Insurance to give you the most accurate cost data for a range of Colorado drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Colorado as of December 2024.

106,836Quotes Analyzed

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Colorado Minimum Coverage Car Insurance Requirements

In Colorado, drivers must have minimum coverage auto insurance to operate a vehicle legally. The minimum coverage amounts required are:

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

Colorado is a fault state that requires the driver at fault in an accident to pay for the damage. The distinction between fault and no-fault states affects insurance costs and how claims are processed. In a no-fault state, drivers use their own insurance to cover minor injuries, often increasing the cost of personal injury protection coverage. In fault states like Colorado, the at-fault driver is responsible for the damage.

DOES COLORADO REQUIRE COLLISION AND COMPREHENSIVE COVERAGES?

Colorado doesn't require drivers to carry collision or comprehensive insurance. However, if you finance or lease your vehicle, lenders often mandate collision and comprehensive coverages to protect their financial interest in your car. These coverages pay for damage from accidents, theft, natural disasters and other non-collision incidents.

If you own your vehicle outright, you can decide whether to get collision or comprehensive insurance. Still, it's recommended for high-value vehicles or where potential out-of-pocket repair costs are a concern.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you're at fault in an accident	Your injuries
Damage to another person’s property if you're at fault in an accident	Damage to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if an animal hit you
	Property damage caused by uninsured/underinsured drivers, unless additional coverage is purchased

The table above is based on the Colorado minimum car insurance requirements, mainly liability coverage for bodily injury and property damage. Specific coverage details are subject to the terms and conditions of an individual's policy.

Average Cost of Minimum Coverage Car Insurance in Colorado

Age is the most significant factor affecting Colorado's minimum car insurance cost. Drivers aged 22 to 29 face the highest premiums, as insurers view them as higher risk due to their inexperience and greater likelihood of accidents.

The table below shows Colorado's average minimum coverage costs by age group.


22-29	$818	$68
30-59	$644	$54
60 +	$678	$56

Cheapest Companies for Minimum Coverage Car Insurance in Colorado

These are the most competitive rates for Colorado residents seeking budget-friendly minimum coverage insurance options:

American National P&C: $311 per year; $26 per month
GEICO: $418 per year; $35 per month

Finding affordable minimum coverage insurance is important, but choosing a plan that aligns with your needs is crucial when exploring the best car insurance in Colorado.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


American National P&C	$311	$26
GEICO	$418	$35
Colorado Farm Bureau	$433	$36
Progressive	$439	$37
American Family	$499	$42
Auto-Owners Insurance Co	$547	$46
Acuity	$549	$46
State Farm	$572	$48
Kemper	$685	$57
Farmers	$745	$62
Nationwide	$956	$80
Allstate	$1,055	$88
Farmers Union Insurance	$1,164	$97

Optional Add-On Coverages in Colorado

In Colorado, optional add-ons include uninsured/underinsured motorists, collisions, comprehensive coverage, medical payments and roadside assistance. These options provide extra protection beyond minimum coverage, covering costs from accidents with uninsured drivers, vehicle repairs, medical bills and towing services. Understanding how much car insurance you need can help you choose the right coverage.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured motorist coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance	Damage to your vehicle if you're at fault or damage that exceeds policy limits
Personal injury protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault	Vehicle damage or injuries to the other driver
Roadside assistance	Services like towing, flat tire changes and jump-starts when your car breaks down	Cost of parts or repairs needed after the tow
Gap insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen	Vehicle depreciation or overdue loan payments
Rental car reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event	Fuel, insurance or other rental extras
Collision coverage	Repairs to your car after an accident, regardless of fault	Damage due to theft, vandalism or natural disasters
Comprehensive coverage	Repairs to non-collision damage from events like theft, fire or hail	Damage from a collision or personal injuries
Towing and labor coverage	Towing and basic roadside assistance labor costs at your vehicle's breakdown site	More extensive repairs needed at a garage
Custom parts and equipment coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems	Original parts that came with your vehicle
Accidental death coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident	Non-accidental death or injuries
Classic car insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars	Regular use like your daily commute

Penalties for Driving Without Insurance in Colorado

The cost of a ticket for driving without insurance in Colorado can be more severe if you've been caught without coverage before. Penalties may be lighter for first-time offenders, but they escalate with subsequent offenses.

Penalties include:

Vehicle impoundment: Your car may be taken to an impound lot or tow yard, and you'll have to pay towing and storage fees.
Vehicle registration suspension: You can't legally drive your car until the registration suspension is lifted.
Driving license suspension: Your driving privilege is denied for a defined period, and a reinstatement fee is required.
SR-22 filing requirement: You might have to file an SR-22, a form that proves you have insurance, which will increase your premiums.
Jail time: If you're involved in an accident without insurance, you could face jail time of up to six months.

Driving with insurance is required by law. This rule protects you and others on the road and helps you avoid penalties. Having minimum coverage is a crucial responsibility when operating a vehicle.

What to Do if Your Policy Is Canceled

If your car insurance is canceled in Colorado, immediately stop driving and contact your insurance agent. Driving without insurance is against the law and can lead to severe penalties. After cancelation, you must get a new policy to drive legally.

The Colorado Department of Motor Vehicles (DMV) keeps track of insured vehicles and will be alerted of your insurance status through the state's monitoring system. You might face license suspension, fines and vehicle impoundment if you're uninsured. If you have trouble getting coverage through standard insurers, Colorado offers the Colorado Motor Vehicle Insurance Plan (CO AIP) to high-risk drivers. This plan ensures everyone has access to the minimum coverage required to drive.

All drivers in Colorado must carry at least the minimum auto insurance to comply with the law and protect themselves on the road. For more details on insuring a high-risk vehicle, visit the official Colorado state government website.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Colorado may have been canceled for several reasons:

Non-payment: If you don't pay your premium, insurers will cancel your policy.
Fraud: Lying or providing false information can lead to cancelation.
License suspension: Losing your license will result in losing your insurance.
High risk: Causing accidents or getting many tickets makes you a high-risk driver, and insurers might cancel your policy.
State minimums: Not maintaining state minimum coverage violates insurance laws, leading to cancelation.

FAQ: Colorado Minimum Coverage Car Insurance

All drivers must know Colorado's minimum car insurance requirements for legal compliance and financial protection. We answered frequently asked questions to help you understand the coverage you need for peace of mind on the road in the Centennial State.

What is the minimum car insurance coverage in Colorado?

Colorado's minimum coverage auto insurance includes $25,000 for bodily injury liability per person, $50,000 per accident and $15,000 for property damage liability per accident. Uninsured/underinsured motorist coverage isn't mandated. This basic coverage ensures drivers meet the legal requirements to operate a vehicle in the state.

Why does Colorado require minimum automobile liability coverage for motorists?

Colorado requires minimum coverage auto insurance to ensure motorists can cover costs for damage and injuries they may cause in an accident. This financial responsibility protects the policyholder, as well as drivers, passengers and pedestrians, from unmanageable expenses and maintains accountability on the road.

Do you need comprehensive insurance in Colorado?

Comprehensive insurance isn't legally required in Colorado. However, this coverage financially protects against losses due to non-collision incidents such as theft, vandalism or natural disasters. While carrying only minimum coverage is enough to meet legal obligations, adding comprehensive insurance ensures a safeguard for unforeseen events that could damage your vehicle.

What happens if you drive uninsured in Colorado?

Driving uninsured in Colorado can lead to severe penalties. First-time offenders face a minimum fine of $500 and their driver's license suspension. Subsequent violations increase fines and may result in community service or even jail time. Proof of insurance and a fee are required to reinstate a license. Maintaining at least the state minimum coverage is crucial to avoid these consequences and ensure financial protection in case of an accident.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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