Colorado Auto Insurance

Colorado Auto Insurance Laws

Colorado auto insurance laws require you to carry a minimum amount of liability insurance. You will need to provide proof that you possess the minimum liability auto insurance to pay for injuries to another person or damages to their property in case of an accident.

The Colorado State Department of Revenue and the Colorado State Department of Insurance are the government agencies you need to present your proof of insurance to. You may also need to contact the Motor Vehicle Division. In order to register your car in Colorado, you must prove that you have the proper liability auto insurance coverage. All eligible drivers in a household must be covered under a liability auto insurance policy.

Mandatory liability auto insurance is also required on rental vehicles by the state, and is sufficient in covering Colorado auto insurance requirements. Your personal auto insurance policy generally covers rental cars but if it does not provide coverage for rental vehicles, you may want to check with the credit card that you used to rent the car on. Credit card companies sometimes cover insurance on rental cars. If neither option applies to your situation, you must purchase the minimum liability insurance from the rental company. Keep the rental agreement in the vehicle through-out the term of the agreement. This will be your proof of insurance in case of an accident or traffic stop.

Common Facts about Colorado Auto Insurance Laws

Colorado is now a Torte state. This means that the individual who is at fault in an accident may be sued by those injured in the accident, or families of those killed in the accident, for pain, suffering, and lost wages. That individual will also be held responsible for all medical expenses connected to the accident.

You must have proof of insurance with you at all times and failing to do so will result in violation of Colorado auto insurance laws. Colorado’s mandatory minimum liability auto insurance limits are $25,000.00 per individual injury or death, $50,000.00 for all injured persons, and $15,000.00 for damage to property. Auto insurance policies purchased in Colorado will include the mandatory liability minimum insurance limits.

However, the state of Colorado does not require drivers to carry underinsured or uninsured auto insurance coverage but the insurance company must offer that protection to you when you apply for a policy with their company, but if you can’t afford it, Colorado auto insurance requirements don’t require it, so breathe easy. The amount of the uninsured and underinsured policies must equal the bodily injury limits of $25,000.00 and $50,000.00 or $100,000.00 per person and $300,000.00 per accident totals, or whichever is lower. Likewise, you do not have to carry collision and comprehensive insurance on your vehicle but the company must offer you that option.


Colorado requires motorists to be covered by the mandatory liability auto insurance policy at all times. You will not be allowed to register your vehicle without proof of insurance. Should you become involved in an accident or be stopped for a traffic violation and you do not have the required liability policy, you will be cited as an uninsured motorist, a violation of Colorado auto insurance laws. Even if the accident is not your fault, you can still be cited for lacking proof of insurance. This will result in fines and points being added to your driving record. The penalties will increase with repeat offenses. The exemptions to the mandatory liability insurance are off highway vehicles and non-operational vehicles. Individuals who are out of state seasonally or in the military may also receive an exemption.

Not honoring Colorado auto insurance requirements can be quite expensive, too. Upon the first offense, you will be charged $500.00 and as well as having 4 points added to your driving record. With the second offense you will be charged $1,000.00, and have your license suspended for 4 months. The third offense will result in 40 hours of compulsory community service, suspension of your vehicle’s license for 8 months and a $1,000.00 fine. Vehicle registrations will also be suspended if you are found guilty of driving without proper liability auto insurance or submit false proof of insurance. Failure to comply with the laws or to submit proof of insurance upon request by the authorities may also result in vehicle registration suspension and fines.


You must produce proof of insurance upon request by the authorities. This proof needs to include the name of the insurance company, the dates of coverage, and the amount of liability coverage. It also needs to include the policy number, VIN number of the vehicles covered, the make and model of the vehicles as well as the name of the policy holder. The auto insurance needs to be authorized by a qualified auto insurance company, and if not, you’re subject to any fines under Colorado auto insurance laws.

Remember that you may need your proof of minimum liability auto insurance at any time. You will definitely need it at the time of registering your car, in the case of involvement in an accident either as the cause of the accident or the victim of the accident, or if you should be stopped for a traffic violation.