Getting caught driving without Colorado car insurance can have very serious consequences. Colorado, and every other state, requires all vehicles and their drivers to be insured if they are responsible for causing injury or property damage to another party. Driving is a privilege and not a right and if you want to drive you need to show that you are willing to accept financial responsibility for your actions while operating a motor vehicle. Following are some of the consequences you might face if you are caught driving without insurance in Colorado.

Impound – Your car could be impounded if you are involved in an accident and have no insurance. If you are stopped for a moving violation or other infraction and have been driving without insurance for an extended period of time, your car may also be impounded.

Driver’s License Suspended – Your driver’s license may be suspended for a period of time if you do not have Colorado auto insurance. To get your license reinstated you may be required to file an SR-22 which is a rider to a standard insurance policy where the insurance company guarantees you will keep your insurance coverage in effect for a certain period of time. A second offense will result in a minimum 4 month suspension of your driving privileges and a third suspension will mean a minimum of 8 months without a valid Colorado driver’s license.

Fines – Depending upon the situation, you may be forced to pay a fine or penalty before being allowed to drive again. Generally, the more egregious you have been in neglecting to carry auto insurance, the higher the fines and penalties will be to get back in good standing and be able to legally drive in Colorado.

An educated consumer will be much more likely to get a better deal for their money. That applies to everything from shopping for groceries, buying an airplane ticket or purchasing auto insurance. In Colorado, there are numerous companies ready, willing and able to sell you Colorado auto insurance. Just how do you know which company you should choose?

There are several important factors you should consider when comparing different Colorado auto insurance companies including the premium you will be required to pay, the history and reputation of the company and how well they handle claims.

At the top of most people’s list when comparing Colorado auto insurance policies is the amount that it will cost to insure their vehicle. All companies measure and assess risk in determining the premiums that they charge. Categories of risk might include age, sex, type of vehicle, how many miles the vehicle is driven annually, the neighborhood where the car is garaged and a number of other factors. A Denver car insurance company may assign a different amount of importance to a particular category of risk than a Boulder auto insurance company and that can affect the premium they charge to a particular individual. In addition, some insurance companies are run more efficiently and can charge lower rates while others spend heavily on advertising and have more overhead costs that they pass on to their customers. Still others simply charge more because they feel it will lead to greater profits.

Shop around and get quotes for the same coverage from a number of different Colorado insurance agencies. Do not base your decision solely on the lowest price you can find.

Make sure the Colorado car insurance company you are considering has been in business for a long time and has a good reputation of being fair and honest. No one wants to find out their policy is not worth the paper it is printed on because their insurer is less than reputable.

The best way to compare Colorado auto insurance companies is to find out about their claims payment policy. You can ask an agent specifically to explain how they handle claims or, better yet, talk to some clients and ask them about their claims experience.

In Colorado, drivers and owners of motorized vehicles are required to carry a minimum amount of bodily injury and property damage liability insurance. The minimum required amount of Colorado auto insurance is 25/50/15. Simply stated, if you are involved in an accident and found to be at fault, your insurance will pay up to $25,000 for any bodily injury to a single individual or up to $50,000 for all individuals injured by your actions. The policy will also pay out up to $15,000 in property damage you may have caused as a result of the accident.

While these are the minimum requirements, in today’s world an accident can result in far more financial costs than the minimum insurance requirements will cover. If you are found responsible for an accident, you can and very possibly will be held responsible for any amount of damage above the minimum coverage limits. A prudent person should have adequate liability coverage to protect their personal assets.

Mandatory car insurance in Colorado does not require you to carry Comprehensive or Collision coverage to protect your own vehicle. However, if you finance a car, the lender may require you to have this type of coverage. Comprehensive insurance covers you against such things as theft, vandalism or other damage other than collision. Collision insurance covers your car regardless of which party was at fault. If the other party was at fault, your insurance company may try to recover the repair costs from the other driver’s insurance company.

In addition to Comprehensive and Collision coverage, Colorado drivers can elect to purchase Uninsured/Underinsured coverage that protects them, their named resident relatives and any passengers in their vehicle in the event of an accident with a person who has no insurance or an inadequate amount of insurance.

Finally, another optional type of coverage is Medical Payments that pays for reasonable and necessary medical expenses for you and you covered passengers without regard to liability in an accident that causes bodily injury.