Colorado Car Insurance Laws

By Contributing Writer

  • Overview

    Car insurance is something everyone who drives a car in Colorado must have. In addition to the fact that auto insurance covers potentially large expenses in the case of an accident or damage to your car, Colorado law requires all motorists to have adequate auto insurance. Understanding Colorado laws regarding car insurance can make sure that you have the right coverage without getting ripped off.
  • Significance

    The State of Colorado requires automobile liability insurance for all drivers regardless of age. Failure to comply can result in a fine and suspension of drivers license, and in certain cases, even imprisonment.
  • Features

    Colorado State law requires all motorists to carry a minimum liability coverage of $25,000 liability per injured person, $50,000 per accident and $15,000 property damage.


  • Identification

    All vehicle owners in Colorado must sign the back of their automobile registration attesting to the fact that they do indeed have the minimum liability coverage in force and will keep it in force. Failure to sign the back can result in a fine and signing the back without having the requisite coverage is considered perjury.
  • Other Insurance Laws

    Colorado law requires that all insurers offer un-insured and under-insured coverage as optional protection on all new and renewing automobile policies. This option covers those involved in an accident with a driver who was either un-insured, or who only had the minimum coverage and such coverage was not sufficient. There is no regulation on what this coverage may cost.
  • Considerations

    While minimum insurance amounts are required by law, they may be insufficient for many drivers. People who own their own home, or who otherwise have sizable assets should have higher coverage. Many times, additional coverage is not much more expensive than the minimum.
  • Misconceptions

    Colorado is no longer a no-fault state. Colorado was a no fault state until 2003 when it changed to the more standard tort system where the driver at fault is responsible for damages. Older (or infrequently updated) sources may not have this correct.
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