Colorado Auto Insurance: Everything You Need to Know

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Whether you’ve just moved to Colorado or you’re a long-time resident, you need to have auto insurance to legally drive on the state’s roads. But with so many insurance providers and policy options to choose from, it can be overwhelming to navigate the world of auto insurance in Colorado. In this article, we’ll break down the basics of Colorado auto insurance and answer some common questions to help you make informed decisions about your coverage.

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What Does Colorado Auto Insurance Cover?

Auto insurance policies in Colorado typically include several types of coverage:

Type of Coverage
Description
Bodily Injury Liability
Covers medical expenses and lost wages for people injured in an accident you cause.
Property Damage Liability
Covers damage to other people’s property caused by an accident you cause.
Personal Injury Protection (PIP)
Covers medical expenses and lost wages for you and your passengers, regardless of who caused the accident.
Uninsured/Underinsured Motorist
Covers expenses if you’re hit by a driver who doesn’t have insurance or doesn’t have enough insurance to cover your costs.
Collision
Covers damage to your own vehicle in an accident.
Comprehensive
Covers damage to your vehicle from non-collision events, such as theft, fire, or natural disasters.

Keep in mind that minimum coverage requirements vary by state. In Colorado, the minimum coverage required by law is:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

However, these minimums may not be sufficient to cover all of your expenses in the event of an accident. It’s a good idea to consider higher coverage limits or additional types of coverage.

How Much Does Colorado Auto Insurance Cost?

The cost of auto insurance in Colorado varies depending on several factors, including:

  • Your age, gender, and marital status
  • Your driving record and claims history
  • The type of vehicle you drive
  • The amount of coverage you choose
  • Your location

According to the National Association of Insurance Commissioners, the average cost of auto insurance in Colorado in 2017 was $872 per year. However, your individual cost may be higher or lower depending on your specific circumstances.

What Happens If You Don’t Have Auto Insurance in Colorado?

Driving without auto insurance in Colorado is illegal and can result in several consequences:

  • Fines and penalties
  • Suspension of your driver’s license and registration
  • Requirement to file an SR-22, a form that verifies you have insurance, before you can drive again
  • Potential civil lawsuits if you cause an accident and can’t cover the damages

Additionally, if you’re involved in an accident and don’t have insurance, you’ll be responsible for covering your own expenses and the expenses of any other parties involved. This can be financially devastating and potentially ruinous.

What Should You Look for in an Auto Insurance Policy?

When shopping for auto insurance in Colorado, there are several things to consider:

  • Coverage options and limits
  • Cost of premiums
  • Deductibles
  • Availability of discounts
  • Customer service and claims satisfaction ratings

It’s also important to read your policy carefully and understand what is and isn’t covered. Ask questions if you’re unsure about anything, and don’t be afraid to shop around and compare rates from multiple providers.

FAQs

What is the difference between bodily injury liability and personal injury protection?

Bodily injury liability covers medical expenses and lost wages for people injured in an accident you cause, while personal injury protection (PIP) covers similar expenses for you and your passengers, regardless of who caused the accident.

Do I need uninsured/underinsured motorist coverage?

While it’s not required by law, uninsured/underinsured motorist coverage can be valuable in the event that you’re hit by a driver who doesn’t have insurance or doesn’t have enough insurance to cover your costs. It can help you avoid having to pay out of pocket for expenses that the other driver should be responsible for.

What is an SR-22?

An SR-22 is a form that verifies you have insurance. If your driver’s license or registration has been suspended, you’ll need to file an SR-22 before you can drive again. It’s typically required for a certain period of time, and if you let your insurance lapse during that time, your license and registration will be suspended again.

What should I do if I’m in an accident?

If you’re in an accident, follow these steps:

  1. Check for injuries and call 911 if necessary
  2. Exchange information with the other driver, including name, contact information, and insurance information
  3. Take photos of the damage and the accident scene
  4. Contact your insurance provider and report the accident
  5. Cooperate with any requests from law enforcement or insurance adjusters

What if I can’t afford auto insurance?

If you can’t afford auto insurance, you may be eligible for Colorado’s Auto Insurance Plan (CAIP). CAIP is a state-sponsored program that helps high-risk drivers get insurance coverage. However, the premiums for CAIP policies are typically higher than those for standard policies.

Conclusion

Auto insurance is a necessary expense for drivers in Colorado, but it doesn’t have to be confusing or overwhelming. By understanding the basics of Colorado auto insurance and shopping around for the right policy, you can protect yourself and your finances in the event of an accident.

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