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All 4.2 million licensed drivers in Colorado are required to carry auto insurance for their vehicles. With a normal driving record, you’d be expected to pay around $1,172 annually on auto insurance. This price is 12 percent above the national average of $1,047.
Are you moving to Colorado or just trying to brush up on laws in your state? There is so much to know about the requirements for auto insurance, costs, providers, state laws, and premiums specific to Colorado. We put it all on one page for your convenience.
For those trying to spend as little as possible on auto insurance in Colorado, here are the state minimums.
Property damage and bodily injury are the two areas covered under liability coverage. If you add comprehensive and collision coverage, it is considered full coverage. Full coverage is not required in Colorado, but each driver is required to have liability coverage at the minimum.
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.
Since bodily injury liability covers others’ health and safety, it is important for you to have enough coverage. We recommend $500,000 in coverage.
Paying out of pocket for property or vehicle damages can add stress to an already stressful situation. We recommend $500,000 in coverage so you don’t find yourself going over your limit.
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. 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 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.
Even though it is illegal to drive in Colorado without auto insurance, some still do. 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.
If you have medical expenses or lost wages due to an accident, personal injury protection can cover costs up to your limit for you and your passengers, regardless of health insurance. When looking into PIP, consider your financial situation and health insurance. If you do not have health insurance, or have a high deductible on your health insurance, we recommend purchasing coverage with higher limits. We suggest $500,000 in coverage.
According to the National Association of Insurance Commissioners, which last released data in 2020, the average yearly cost of auto insurance in Colorado is $1,172.1 We’ve also seen estimates range from $518 to $2,016 per year.
If you’re looking for car insurance in Colorado, consider the following companies:
Here are some ways to lower insurance premiums in Colorado:
You can show proof of insurance by paper copy or digitally. If you get caught driving without proof of insurance, there are consequences.
Every time you are caught driving without proof of insurance, you’ll receive four points on your driver’s license.
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.
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.2
An estimated 16 percent of drivers in Colorado are uninsured, which accounts for around 690,368 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.
In Colorado, a DUI can stay on your record for five years. For the first offense, you could have your license suspended for four months. For repeat offenders with blood alcohol concentration above 0.15 percent, DUI interlocks are required.
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.
Colorado does not have a handheld ban for those over 18 years old. 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.
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.
Curfews vary by city or county, so check the guidelines for your area before driving at night if you’re a new driver.
No driver under 18 is allowed to use their phone while driving. Being caught on your phone while driving can result in a fine or loss of license. Calls to the police and fire departments are exceptions to this law. New drivers must also wear seat belts at all times.3
In Colorado, you have three years following an incident to file both property damage and personal injury claims. If you wait more than three years, your insurance is not required to cover your claims.
Auto insurance companies cannot cancel policies that have been in force for over 60 days unless you don’t pay the premium, you’ve committed fraud or misrepresentation, or your driver’s license has been revoked or suspended. If your provider wants to cancel your insurance policy midterm, it must notify you 45 days before cancellation. If the midterm cancellation is due to nonpayment, then it must notify you 10 days before.
If the company decides not to renew your policy at the end of the term, it must explain a reason and notify you 30 days before the expiration date. Non-renewals may occur because the company no longer offers that type of insurance, it doesn’t want to write so many policies in your area, or you have a DUI conviction.4
Colorado allows self-insurance, but only if you own over 25 vehicles. The minimum requirement is at the discretion of the insurance commissioner.5
Colorado does not require yearly vehicle inspections, but you still should keep up to date on maintenance to make sure your car can get you from one place to the other safely.
An SR-22 is proof of minimum insurance. In Colorado, this specific form is required when you reinstate your license after revocation or suspension due to driving under the influence, driving without insurance, or, in some cases, having multiple traffic violations.
In lieu of paying a speeding ticket or having points added against your license, you can take a defensive driving course. Defensive driving means using safe driving strategies to avoid hazards. You can also take this type of course to get insurance discounts if you are 55 or older, depending on your provider.
Colorado is an at-fault state, so each party pays for damages based on their degree of fault. If you don’t agree with the payout, you can file a lawsuit and seek uncompensated economic damages such as medical expenses or lost wages. You can also seek noneconomic damages like pain, suffering, and anxiety.6
You must report accidents involving death, injury, or any property damage to the police within 10 days. If you do not report the accident to the police, you might face a penalty of 10 to 90 days in jail, a $150 to $300 fine, or both in some cases.
In Colorado, it is legal for insurance companies to discriminate based on your credit score when they make decisions about your insurance premiums. It is also legal to discriminate based on gender, so men pay more for car insurance in this state.
A total loss is when repairs for your vehicle would cost more than the vehicle’s estimated value, the vehicle cannot be safely repaired, or the damage meets your state’s total loss guidelines. In Colorado, if the repairs cost more than 100 percent of the car’s actual market value, it’s declared a total loss.
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.
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:
Here’s how to get a copy of your car’s title if you need it to prove ownership:
In case you have more questions about Colorado’s auto insurance laws, here is the contact information for the state insurance department.
If you get in an accident and need repairs, here are the average costs in Colorado.
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.
There were 524 motor vehicle thefts per 100,000 Colorado residents in 2020. This is 81 percent higher than the national average of 246 per 100,000 inhabitants. Rates were even higher in cities like Denver and Pueblo, which are among the top 10 cities for motor vehicle theft in the entire U.S.
Name of Metropolitan Statistical Area | Rate of motor vehicle theft by 100,000 inhabitants in 2020 |
---|---|
Denver-Aurora-Lakewood, CO | 706 |
Pueblo, CO | 602 |
Colorado Springs, CO | 357 |
Greeley, CO | 329 |
Grand Junction, CO | 289 |
Boulder, CO | 274 |
Fort Collins, CO | 158 |
Colorado had 596 traffic fatalities per 100 million vehicle miles traveled in 2019. This is 19 percent lower than the national average of 708.
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.
Read on to learn more about auto insurance in Colorado.
Colorado’s average annual insurance rate is 12 percent higher than the national average of $1,047, according to 2020 data from the National Association of Insurance Commissioners.
Drivers in Colorado pay an average of $98 monthly for auto insurance. This means they pay around $1,172 annually, according to average 2020 rates from the National Association of Insurance Commissioners.
If you’re looking to spend the least money possible on insurance, you can just get the minimum coverage. In Colorado, the minimum is liability coverage, which includes bodily injury and property damage. You must have at least $15,000 in coverage for property damage liability and $25,000 in coverage for bodily injury liability. For an accident involving two or more people, you need a minimum of $50,000 in bodily injury liability. We have seen estimates as low as $518 annually for minimum liability coverage in Colorado.
Insurance rates are so high in Colorado because there are several densely populated cities. This means more drivers and more accidents, which drives rates up.
2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf
Colorado’s Modified Comparative Negligence Law. Mintz Law Firm. (2022).
https://www.mintzlawfirm.com/colorados-modified-comparative-negligence-law/
Teen Driving Restrictions. Colorado Department of Transportation. (2021).
https://www.codot.gov/safety/colorado-teen-drivers/parent/teen-driving-restrictions.html
What’s the difference between auto policy cancellation and nonrenewal? Insurance Information Institute. (2022).
https://www.iii.org/article/whats-the-difference-between-auto-policy-cancellation-and-nonrenewal
Insurance: House Bill 03-1188. Colorado.gov. (2003).
https://leg.colorado.gov/sites/default/files/images/olls/2003a_sl_234.pdf
What Is the Difference between No-Fault and At-Fault Insurance States? HG.org Legal Resources. (2022).
https://www.hg.org/legal-articles/what-is-the-difference-between-no-fault-and-at-fault-insurance-states-35152
Contact Us – DMV. Colorado Department of Revenue. (2022).
https://dmv.colorado.gov/contact-us-dmv