Colorado Auto Insurance Requirements

By Contributing Writer

  • Overview

    If the driver of a car gets into an accident, there can be hefty bills for repairs and medical treatment. Auto insurance helps with these expenses. However, if the accident is someone else's fault, her car insurance--not yours--is the one that's on the hook. If that person doesn't have car insurance, you might not be able to get the coverage you need. That's why Colorado has laws that require all drivers to have insurance.
  • History

    Colorado was a no-fault state for automobile accidents until 2003. Since then, Colorado has used the more standard tort law for auto accidents and liability in which the person at fault is responsible for the damages caused in an accident.
  • Significance

    Proof of insurance is required in order to register a vehicle. It is also required to get a driver's license. In addition, every year when a car's title is renewed, the owner must sign the back stating under penalty of perjury that he has current auto insurance.

  • Size

    The amount of liability insurance required by Colorado law is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage.
  • Benefits

    Mandatory auto insurance reduces the number of uninsured drivers and helps ensure that people get at least a certain level of coverage. By establishing minimum amounts, people are likely to buy at least basic coverage.
  • Considerations

    Although Colorado law proscribes minimum amounts of liability coverage, it should not be assumed that those levels are appropriate for every person. Generally, a person with more assets will require more coverage, especially those who own their home.
  • Features

    Colorado also requires "med-pay" coverage on all auto insurance policies as of Jan. 1, 2009, although customers may refuse such coverage in writing.
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