Colorado Auto Insurance Guide
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Get affordable Colorado auto insurance quote rates for free.
Call Now: (866) 845-3808
Colorado law requires all vehicles to have basic liability coverage. Most CO drivers buy their auto insurance from a traditional insurance company and pay a premium to do so.
However, CO law allows individuals who own 25 vehicles or more to self-insure. In a nutshell, high-net-worth individuals can prove to the state they have enough cash on hand at any time to pay for any damage or injury they might cause when behind the wheel. Self-insurance is rare, though. Most drivers choose traditional auto insurance policies.
Key Takeaways
Colorado law states drivers must have liability coverage of $25,000 / $50,000/ $15,000. In a covered accident, Colorado’s minimum car insurance will pay:
Liability coverage in Colorado exists to protect drivers financially in case of an accident. Still, many drivers feel they need more coverage than the state minimum. That’s because our modern vehicles are faster than ever, and more capable of causing damage to other people and their property.
The costs to repair damaged property are increasing as well, so people with assets tend to buy more liability coverage.
Colorado only requires drivers to maintain basic liability coverage. But other coverages are available, and they might be required by your lienholder (the financial institution that has your auto loan.) Some important coverages include:
$25,000 Personal Injury
If you’re responsible for injuring another driver, this coverage helps to pay medical costs and more. But it may not be enough coverage. With these limits, medical costs above $25,000 for one person, or $50,000 for more people become the responsibility of the at-fault driver.
$15,000 Property Damage Liability (PDL)
Most vehicle accidents cause some amount of property damage, whether it’s to other vehicles on the road, real estate, or another person’s belongings. This coverage pays for these damages. If these damages are more than $15,000, the at-fault driver will need to pay the difference.
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No. As of 2022, there is no Colorado law that requires drivers to keep this type of coverage. However, it’s included in most full-coverage packages, and might be available as an add-on or endorsement. Many drivers feel it’s a valuable addition.
As of January 1, 2022, Colorado has softened their approach to driver license revocation. Previously, CO drivers could lose their driving privileges for infractions that had little to do with their driving behavior. For instance, CO drivers could lose their license for supplying alcohol to a minor or a theft conviction.
CO drivers will no longer lose their license for these sorts of events, and the state estimates 100,000 people will keep their license every year.
If you are caught driving without insurance in CO, the penalties are significant. Your first offense will lead to a $500 fine and four points on your license. These points may make it difficult to find affordable Colorado auto insurance in the future.
If a driver is found to be operating a motor vehicle without insurance a second time, the fine is $1,000, and your license may be suspended for four months.
For third offenses and beyond, the fine is also $1,000. Your license will be suspended for eight months.
Most auto insurance companies will slowly increase your premium (price) over time, even if you don’t have any claims. This is a marketing tactic, not your imagination. So, it makes sense to call around and shop for auto insurance every few years. Insurers will try to gain your business by offering a better price.
Other ways to decrease your costs for CO auto insurance are:
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Read More: 8 Simple Ways to Save You 90% On Your Car Insurance
Colorado insurance companies rate drivers and vehicles by their risk level. Electric vehicles (EVs), fast foreign cars, very heavy vehicles, and unsafe drivers tend to cost the most to insure. When creating your contract and deciding on your premium, insurers will consider:
CO Auto Insurance Rates by Carrier
We scoured the web to find the best Colorado auto insurance rates for very safe drivers with no claims history. However, your final price will depend on the issues listed above.
Carrier | Yearly Average Premium in Colorado |
GEICO | $354 |
State Farm | $452 |
Progressive | $619 |
Farmers | $620 |
For help finding Colorado auto insurance quotes, contact us today or simply put your zip code below and hit “Get A Quote” !
Simply enter your zipcode to compare car insurance rates and find the best coverage.
Here are answers to the most common questions we hear about CO auto insurance.
Is auto insurance mandatory in CO?
Yes. Colorado requires all drivers to keep at least a minimum amount of liability coverage. If you’re caught driving without insurance in CO, you’ll face fines ranging from $500 to $1,000, get points applied to your license, and have your license suspended for repeat violations.
Do I need full coverage auto insurance in Colorado?
There is no law that forces CO drivers to carry full coverage auto insurance. However, your bank or lienholder may require it if you are still paying for the vehicle, and many CO drivers feel more comfortable with a full coverage policy.
What is the cheapest auto insurance in Colorado?
Our research suggests GEICO offers the most affordable policy for safe drivers. But it’s important to shop around every few years and seek a bundle if possible.
How often should I shop for auto insurance?
You will save money by shopping around for auto insurance every few years. If you spend one afternoon getting 10 quotes, you might save hundreds of dollars every year.
Colorado Department of Revenue – Motor Vehicle
US Federal Highway Administration
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