The Colorado legal system mandates that drivers carry minimum liability insurance: $25,000 for bodily injury per person and $50,000 per accident. Notably, while these figures are legally compliant, they seldom cover the full spectrum of losses associated with serious car crashes. In a state where automobile accidents are frequent, choosing higher auto insurance coverage limits and additional policies fortify you against tomorrow’s uncertainties.

Why is Car Insurance Essential for Drivers in Colorado?

According to the Network of Employers for Traffic Safety, the average economic cost of a car crash in Colorado is approximately $75,176 for each nonfatal injury and $751,382 for each fatality. Auto insurance is designed to spread this financial risk associated with driving from individual drivers to a broader community, thereby making it manageable.

This is why almost every state requires drivers to have at least some form of car insurance. The most common requirement is liability insurance, which covers damage or injuries the policyholder may cause to others in an accident. In the event that you ever get injured or cause an accident, you can cover the damage costs without the need to resort to legal claims or court proceedings.

Despite the stringent laws, 17.5% of drivers in Colorado are uninsured. There are ways to protect yourself from these drivers. If you are hit by an uninsured driver, Uninsured/Underinsured Motorist (UM/UIM) Coverage may cover your damages. UM/UIM coverage is available to purchase with every auto insurance policy in Colorado.

Colorado’s Minimum Car Insurance Requirements

Each driver is legally required to carry at least minimum levels of liability insurance as following:

  • Bodily Injury Liability: This covers injuries that you, as the driver or policyholder, cause to someone else. The minimum requirement is $25,000 per person and $50,000 per accident.
  • Property Damage Liability: This covers damage that you cause to another person’s property. The minimum requirement is $15,000 per accident.

The standard limits offered for Uninsured/Underinsured Motorist (UM/UIM) coverage in the state are set to match the bodily injury liability limits that a driver chooses. The minimum for bodily injury liability, which also extends as the default minimum for UM/UIM coverage, is $25,000 per person and $50,000 per accident.

Notably, policyholders have the option to purchase higher limits to increase their coverage, for better financial protection against collisions involving drivers who are either uninsured or do not have sufficient insurance coverage to cover the full extent of damages or injuries they cause.



How Much Colorado Car Insurance Coverage Do You Need?

Evaluate Your Financial Health

Calculate the total value of your assets (home, savings, and investments). If these exceed the minimum liability coverage limits, you should get higher coverage limits to protect them from being targeted in lawsuits following catastrophic car accident injuries.

Understand the Risk of Uninsured Motorists

Given the significant percentage of uninsured drivers, consider maintaining or increasing your Uninsured/Underinsured Motorist Coverage. The snow, ice, or mountain driving conditions in Colorado also increase the likelihood of crashes. Comprehensive coverage can help cover vehicle damages from non-collision incidents like severe weather.

Choose the Right Additional Coverage

Collision Coverage pays for damage to your vehicle in an accident, regardless of fault. This is essential if you frequently drive in high-traffic areas or have a newer vehicle. To cover the non-collision damage to your car from theft, fire, or natural disasters, Comprehensive Coverage is highly recommended.

In addition to Liability insurance, Colorado also requires drivers to carry Medical Payments coverage. This coverage is intended to provide a source of payment for initial medical expenses such as emergency rooms and ambulances. Medical payments coverage does not reduce the liability of the at-fault driver for your losses, but can help offset some of the immediate out of pocket expenses. Use of Medical Payments coverage is not dependent on which driver is at fault, does not have to be paid back at the time of settlement, and may not be used to raise your insurance rates.

Decide on a Deductible

A deductible is the amount of money you agree to pay out of pocket when you make a claim before your insurance coverage gets activated to cover the remaining costs. For example, if your deductible is $500 and you have an accident that causes $2,000 in damage to your car, you will pay the first $500 and your insurance will cover the remaining $1,500.

A higher deductible means that your insurance premiums will be lower because you are taking on more of the financial responsibility in the event of a claim. This reduces the risk for your insurance company. Conversely, it also means you will have more out-of-pocket expenses during a claim.

Compare the Auto Insurance Companies

Gather quotes from several insurance companies to see who offers the best rates for the type of coverage you need. Beyond the price, check what each policy covers and the limits of that coverage. Sometimes a slightly more expensive policy may provide the best car insurance coverage that could be financially beneficial in the long term.

Choose Our Experienced Car Accident Attorneys in Colorado to Protect Your Rights

If you or a loved one has been injured in a car accident and the negligent driver is without sufficient insurance, you may have legal options to obtain financial compensation for your injuries. At Fuller Personal Injury Law, we will aggressively pursue every avenue to make sure you recover the rightful compensation for your medical bills, lost wages, and pain and suffering. Call us at (720)770-3832 or contact us online to schedule a free consultation.