Colorado requires that each motor vehicle in operation on the state's roads be covered by liability insurance in these minimum amounts:
No other types of car insurance are required in Colorado. Drivers can "opt out" of uninsured motorist and medical payments coverage under state law.
This basic coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.
You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.
Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.
Remember that the liability coverage we discussed here doesn't apply to your own injuries or vehicle damage after a Colorado car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, collision coverage (optional in Colorado) can pay for repairs to (or replacement of) your damaged vehicle after a car accident.
Since 2009, Colorado has required auto insurers to offer drivers $5,000 in medical payment, or "med pay," coverage. Drivers can opt out, but if they take no action, the med pay coverage—and the additional premium—is added to the driver's policy automatically. MedPay coverage can be used to get quick compensation for your car accident injuries, regardless of who caused the accident.
While uninsured/underinsured motorist coverage (UIM) is not required in Colorado, all insurers in the state must provide this kind of coverage, in an amount equal to the policyholder's chosen liability coverage for bodily injury, unless UIM coverage is waived in writing by the policyholder.
According to Colorado Revised Statute 42-4-1409, violation of Colorado's mandatory car insurance laws amounts to a "class 1 misdemeanor traffic offense," and offenders:
Subsequent violations of Colorado's mandatory insurance laws will bring harsher penalties than the ones listed above, And on top of these penalties, you'll face serious financial jeopardy if you cause a car accident and you don't have car insurance.
After a car accident in Colorado, if you've suffered any kind of injury or damage, you can usually:
Note: Colorado was a no-fault car insurance state until 2003, but Colorado drivers no longer need to worry about no-fault after an in-state accident.
Besides understanding how car insurance works in the state, you might want to learn more about Colorado laws that could come into play after a car accident.
If you're thinking about making an injury claim after a crash, it might make sense to discuss your situation (and your options) with a legal professional. Get more information on when you might need a car accident lawyer, and how to find the right injury lawyer for you and your case.