Vehicle owners In Colorado are required to have liability insurance. Beyond that, it’s up to the insured to make the decision about how much, if any, extra coverage to add to their policy.

Minimum Insurance Requirements:

In Colorado, the minimum insurance requirement is $25,000/$50,000/$15,000. This means if you are involved in an accident, the minimum coverage required is $25,000 for bodily injury per person, with the total allotment being $50,000. The $15,000 is for damage caused to the no-fault driver’s vehicle. These State minimums for liability were set by Colorado in the late 1960s. As you know, the cost of health care has skyrocketed since then. Also, the State minimum of $15,000 is very low for property damage. If you totaled someone’s vehicle would $15K be sufficient? Most likely it would not. While State minimums for liability get you “on the board,” they are awfully inadequate if you were to cause an injury accident. We recommend a minimum of $100,000/$300,000/$100,000 for liability and property damage coverage.

Liability Coverage:

There are two types of liability coverage, both of which are required in the state of Colorado.

Property Damage: This protects your assets if you are legally found at-fault including damage to the other driver’s property.

Bodily Injury: Here, if one or more parties are injured, certain expenses will be covered, at least in part.

Legal expenses are also covered if a lawsuit arises due to the accident in question.

Optional Coverages:

Having peace of mind when on the road is unparalleled. We recommend adding the following coverage to your policy.


Offers coverage for repairs unrelated to the accident, such as theft, popped tires, vandalism, broken glass, even hail damage, or hitting an animal. Most policies have a $500 or $1,000 deductible, though there are other options. 


Used to repair any damage to vehicle incurred in any accidents, many people opt for the $500, or $1,000 deductible in this case, as well.

Uninsured/Underinsured Motorist:

If you get into an accident with an uninsured, or underinsured motorist, this coverage provides protection, including property damage (aids in repairs to vehicle if the other driver is uninsured/underinsured) and bodily damage (in case of bodily injury occurring in an accident with an uninsured/underinsured driver). Keep in mind, roughly 25-30% of Colorado drivers are completely uninsured, and of the insured, it's estimated 30% are underinsured.

Rental Car Reimbursement:

When your vehicle is damaged and needs repair, this helps cover rental car costs until you get your vehicle back.

Medical Benefits

Provides coverage for urgent care or E.R. costs, as well as funeral costs in the case of a fatal accident, regardless of which driver is at-fault.

Consequences of Driving Without Insurance:

  • Medical cost and repairs to the vehicle
  • Legal fines
  • Potential impound
  • Loss of license
  • Premiums tend to increase

Things that affect rates:

  • Location of vehicle to be insured
  • Number of accidents
  • Type of vehicle
  • Driving history

Things that increase rates:

  • Lapse in insurance
  • Adding a driver
  • At-fault accidents
  • Traffic violations