Colorado Car Insurance Requirements

Colorado car insurance laws require all drivers/owners of motor vehicles to carry a minimum amount of liability coverage. If you are the cause of an accident, liability insurance will cover you for any physical property damage or bodily injury to another person that was a result of your negligent actions. If you are found responsible for the damage, your insurance will pay up to settle any claims up to the limits of your policy. There are minimum mandated amounts of coverage in the state of Colorado for both bodily injury and property damage liability.

The minimum requirement under Colorado law for property damage is $15,000. That simply means if you get in an accident that was your fault, your insurance company will pay up to $15,000 to repair or replace the vehicle that was damaged.

Bodily injury liability minimum coverage is $25,000 for any single individual injured in an accident and $50,000 for all individuals injured in an accident. If you are in an accident where 4 people are injured, your insurance company will pay up to $50,000 to settle all claims, but will not pay more than $25,000 to any one individual.

It is important to consider purchasing more than the minimum amount of Colorado auto insurance mandated by state law. Be smart and buy enough insurance to protect yourself against a personal lawsuit in the event you cause more damage than the minimum amounts cover. Any amount of damage above your insurance limits can become your personal responsibility. If you have substantial assets such as a home, stocks and bonds or anything else, you could put them at risk if you do not have adequate liability insurance.