Colorado car insurance laws are among the strictest in the country. Colorado state law mandates that you have a minimum amount of car insurance. Failure to have this coverage will result in harsh penalties such as monetary fines and prison time. Understanding Colorado car insurance laws will help cover you and your family in the unfortunate event of a car accident. Let’s guide you through Colorado’s basic car insurance laws and regulations.
Do you have to have car insurance in Colorado?
Yes, car insurance is mandatory in Colorado. In Colorado, car owners are expected to carry liability insurance. If the insured person is at fault for an accident, liability insurance covers physical harm to another person or property damage to another’s person’s car or property.
What is the minimum car insurance coverage in Colorado?
The state of Colorado requires the following minimum coverages, though higher coverages can be bought:
- $25,000 for bodily injury or death to any one person in an accident;
- $50,000 for bodily injury or death to all persons in any one accident; and
- $15,000 in property damage for any single accident.
Is Colorado a no-fault state for car insurance?
Colorado is not a no-fault state in terms of car insurance. Colorado transitioned from a ‘no-fault’ car insurance state to a tort scheme or ‘at fault’ state in 2003. Under the original no-fault clause, drivers relied on their own insurance coverage to obtain compensation following a car accident, regardless of who was at fault. You could only file a lawsuit against the at-fault driver if the injuries exceeded a certain amount. Under the at-fault clause, drivers can now bring lawsuits against the responsible parties without waiting to reach a threshold.
In the event of an accident, drivers in Colorado can seek compensation in one of three ways:
- If the at-fault driver is uninsured or underinsured, they can file a claim with their own insurance provider.
- They can submit a claim to the at-fault driver’s insurance company
- They can file a personal injury case against the negligent driver
Can you get can insurance without a license in Colorado?
Legally, you don’t need a driver’s license to buy a car. However, it is difficult to obtain insurance without a driver’s license number. Your license number is used by insurers to verify your driving record and determine if you are a high-risk driver. They’ll be concerned about having to pay bills after an accident if you try to drive without a license. Because of this increased risk, you may need to look beyond well-known insurance firms to find a non-standard insurer willing to take you on if you don’t have a drivers license.
How much is car insurance in Colorado?
Colorado car insurance costs vary based on factors such as age, gender, driving record, city, make and model of car, marital status, and credit score. Currently, Colorado car insurance costs an average of $520 a year for limited coverage and $2,030 per year for full coverage. This works out to around $44 a month for limited coverage and $170 a month for full coverage.
Why is Colorado car insurance so expensive?
Colorado car insurance is expensive mainly because the state has many heavily populated cities with more drivers and accidents, which in turn causes premiums to go higher. The cost of auto insurance is influenced by various factors, most of which are beyond your control. However, you can have an influence on some of the contributing factors. Driving safely, obeying traffic rules, and maintaining a clean driving record are the most effective ways to reduce insurance costs.
Besides that, comparing rates from at least three insurance providers is the easiest way to save money on auto insurance. When you renew your policy, you can ideally review your rates every 6-12 months. Also, update your background and shop for rates every three or five years because you might be able to get a lower rate if a traffic violation is removed from your record. The best way to compare Colorado car insurance rates and get free quotes online is via the Way.com website or app.
