Guide to Auto Insurance in Colorado

For those trying to get the cheapest auto insurance in Colorado, here are the state minimums.

• Bodily injury liability: $25,000 in coverage per person, or $50,000 per accident if two or more people are injured. Bodily injury liability pays for the other party’s injuries or deaths if you or someone on your policy causes an accident.
• Property damage liability: $15,000 in coverage per accident. Property damage liability pays for damage to a third-party’s vehicles or property that you or someone else on your policy causes while driving your car.

What Happens if You Don’t Have Insurance?

If you are caught driving without insurance in Colorado, there is a $500 fine and the possibility of your license being suspended.

Property damage liability and bodily injury liability are the bare minimum. You may want to look into additional coverage such as comprehensive and collision coverage, uninsured/underinsured motorist coverage, and personal injury protection.

Bodily Injury Liability

Since bodily injury liability covers others’ health and safety, it is important for you to have enough coverage. We recommend $100,000 per person/$300,000 per accident, or $500,000 if you have important assets (such as a house).

Property Damage Liability

Paying out of pocket for property or vehicle damages can add stress to an already stressful situation. We recommend at least $100,000, and even up to $500,000, in coverage so you don’t find yourself going over your limit.

Comprehensive

Comprehensive coverage is an optional addition that covers damage and loss from events other than collisions, including theft, hitting an animal, vandalism, or hail.

The limit for comprehensive coverage is the actual market value of your car (minus any deductible). You can find the actual market value of your car by going to car pricing websites, such as Kelley Blue Book or Edmunds, and plugging in your model, make, year, and mileage. Understand that your car will have depreciated in price from the wear and tear of driving. The actual market value of your car is not what you paid for it, but what it is worth now.

Collision

Collision coverage pays for repairs due to at-fault accidents. We recommend getting collision coverage in case you hit a vehicle or object. The limit for collision coverage is the actual market value of your car.

Uninsured/Underinsured Motorist

Unfortunately, high premiums and other barriers mean that approximately 17.5 percent of drivers in Colorado don’t have auto insurance. The Insurance Information Institute ranks Colorado ninth in terms of uninsured motorists, coming just after Delaware and Georgia.¹ If you’re a licensed driver in Colorado, consider adding uninsured or underinsured motorist coverage to your policy.

Uninsured or underinsured motorist coverage helps pay for damage to your vehicle if the at-fault driver doesn’t have enough or any liability coverage. Uninsured or underinsured motorist coverage covers hit-and-runs as well. We recommend getting the same amount of uninsured or underinsured motorist coverage as your bodily injury liability limits.

Medical Payments

In Colorado, medical payments coverage, often referred to as MedPay, is an optional addition to auto insurance policies. It provides financial assistance for medical expenses incurred by the policyholder and passengers following an auto accident, regardless of who is at fault. This coverage can be particularly useful for covering costs, such as health insurance deductibles, co-pays, doctor visits, hospital stays, and emergency services like ambulance fees. Colorado law mandates that insurers offer a minimum of $5,000 in MedPay coverage when purchasing car insurance. If a policyholder opts not to include MedPay, they must sign a waiver to decline this coverage. In the absence of such a waiver, the policy is automatically reformed to include the $5,000 coverage. MedPay can also extend to accidents involving the insured while they are pedestrians or bicyclists.

Our industry analysis found that the average cost of car insurance in Colorado is $1,823 for full coverage, while minimum coverage is $520. In 2021, the last time the National Association of Insurance Commissioners released data, the average yearly cost of auto insurance in Colorado was $1,190.² Unfortunately, since then, insurance rates have risen significantly across the country.

If you’re looking for car insurance in Colorado, consider the following companies:

• Allstate
• American Family Insurance
• American National
• Colorado Farm Bureau
• Direct Auto
• Farmers
• GAINSCO
• GEICO
• Grange Insurance Association
• Nationwide
• Progressive
• Root
• State Farm
• The General
• Travelers
• USAA

Here are some ways to lower insurance premiums in Colorado:

1. Drop coverages, like comprehensive coverage or an old car.
2. Lower your limits.
3. Pay attention to the discounts that your auto insurance provider offers. We’ve seen discounts for being a loyal customer, being a good driver, being a good student, or taking a defensive driving course.
4. Raise your deductible. The higher your deductible, the lower your premium becomes. If you couldn’t afford a higher deductible were you to get in an accident tomorrow, though, you shouldn’t raise it.

You can show proof of insurance by paper copy or digitally. If you get caught driving without proof of insurance, Colorado car insurance laws impose consequences.

• First offense: A minimum fine of $500 and license suspension
• Second offense: A minimum fine of $1,000, license suspension for four months, and imprisonment ranging from 10 days to one year
• Third and subsequent offenses: $1,000 fine, eight-month license suspension, and up to 40 hours of community service

While understanding insurance for your vehicle is important, it is also important to know the laws of the road. Following the rules will protect you from fines, penalties, and license suspensions and revocations.

Fault System

Colorado is an at-fault state. This means that if you cause an accident, you are responsible for the other party’s property damage and bodily injuries. If it is a partial fault between two parties, you can split the costs according to fault.

Colorado has a modified comparative negligence law, which means that your damages are reduced by your percentage of fault in the accident. If your fault is greater than the third party’s, you get nothing.³

Uninsured Motorists

An estimated 17.5 percent of drivers in Colorado are uninsured, which accounts for around 787,500 people. Insurance companies are required to offer uninsured motorist coverage, but you are not required to hold either uninsured or underinsured motorist coverage.

When you have more than one car on your policy, you can stack uninsured and underinsured bodily injury coverage. Your selected limit would be multiplied by the number of cars on your policy. If you have limits of $50,000 or $100,000 and two cars, the limits would increase to $100,000 or $200,000.

DUI Laws

In Colorado, a DUI can stay on your record indefinitely. For the first offense, you could have your license suspended for four months. For all offenders who drive with a blood alcohol concentration above 0.08 percent, DUI interlocks are required.⁴

Seat Belt Laws

Seat belts are required for drivers and front passengers. Colorado has only a secondary seat belt law, which means that it can only write a seat belt citation if there is another traffic citation. However, if the driver is under 18, the seat belt law is primary, which means that law enforcement can write a citation for not wearing a seat belt even if there is no other traffic violation.⁵

Distracted Driving Laws

As of August 2024, Colorado does not have a hand-held ban for those over 18 years old. That will change in 2025, when Colorado enforces a secondary law that outlaws hand-held cell phone use for all drivers.⁶

For drivers ages 16 to 18, any cell phone usage is banned. Texting while driving is illegal for all drivers, regardless of age. This is a primary enforcement. If you get caught texting and driving, you can be fined or even jailed if the incident involves injuries or death.

Teen Driver Laws

Teens and new drivers have restrictions that drivers with more experience do not. Those with learner’s permits must be accompanied by driving instructors, parents, legal guardians, or licensed adults 21 years or older in the front seat, buckled up.

Once teens receive their licenses, they cannot drive any passengers under 21 for the first six months unless a parent or other licensed driver over 21 is in the vehicle. After six months, one passenger under the age of 21 is allowed. Driving for medical emergencies is an exception to this law.

For the first year of having a license, drivers cannot drive between midnight and 5 a.m. unless accompanied by an instructor, parent, or legal guardian. Driving to or from work or school is an exception to this law if drivers have a signed statement from their employer or school. Exceptions are also made for medical emergencies and emancipated minors.

Now that you are aware of Colorado’s laws, it’s time for the next step. Whether you need to register your car, get a copy of your car title, or contact your state’s insurance department, we’ve got you covered.

Registration Information

After you obtain insurance, you will need to register your car. In order to register in Colorado, you need to call or visit your local DMV. Here’s how:

1. Call 303-205-5600.¹²
2. Visit the nearest office to show your documents, including your insurance card, a primary document such as a bill of sale, and a federal odometer statement.

How to Get a Copy of Your Car Title in Colorado

Here’s how to get a copy of your car’s title if you need it to prove ownership:

1. Go to https://dmv.colorado.gov/sites/dmv/files/documents/DR2539A_2021.pdf.
2. Print out the form.
3. Fill it out.
4. Include an $8.20 payment in an envelope with the form.
5. Send it to this address:
   • Colorado Department of Revenue
     Vehicle Services Section
     P.O. Box 173350, Room 147
     Denver, CO 80217

How to Contact the Colorado Insurance Department

In case you have more questions about Colorado’s auto insurance laws, here is the contact information for the state insurance department.

• Phone number: 303-894-7499
• Mailing address:
  • 1560 Broadway, Suite 850
    Denver, CO 80202
• URL: https://doi.colorado.gov/

If you get in an accident and need repairs, here are the average costs in Colorado:

• Labor and parts: $410.08
• Labor: $149.04
• Parts: $261.34

Crime rates affect insurance rates, as insurance companies calculate risk. In other words, the more crime in an area, the higher the average cost of auto insurance.

Motor Vehicle Theft

Colorado consistently ranks among the top US states for auto theft. In 2021 and 2022 (the most recent years for which we have data), Colorado saw the highest levels of auto theft of any state. There were 42,706 total thefts in 2022, or 731 thefts per 100,000 inhabitants — 2.7 times the national average rate of 268. Rates are even higher in cities like Pueblo and Denver, which ranked first and third, respectively, as the top cities for motor vehicle theft in the entire country.¹³

However, the state reported a 21 percent decrease in auto thefts from 2022 to 2023, largely due to legislative changes that classified all auto thefts as felonies, as well as increased public awareness and anti-theft education efforts.¹⁴

Traffic Fatalities

Colorado had 1.42 traffic fatalities per 100 million vehicle miles traveled in 2022. This is 8 percent higher than the national average of 1.33.¹⁵

Driving and car insurance laws differ by state, so if you’re moving or traveling, it’s important to brush up before you drive. If you want to learn more, read our state-by-state driving statistics guide. Also, find the right car insurance provider by checking out the best auto insurance in Colorado.