Colorado Car Insurance Laws – How Drivers Can Stay Legal
Having a vehicle comes with specific responsibilities. You’ll have to learn the rules of the road, how to operate your vehicle, take steps to maintain it, and you’ll have to follow the laws. Colorado car insurance laws are in place for drivers to help protect against major financial losses.
All drivers must have a minimum amount of liability coverage, but there are many instances in which this might not be enough. Nevertheless, understanding Colorado car insurance requirements is imperative for avoiding legal issues and potentially facing expensive lawsuits after an accident.
Freedom Insurance Group is here to help you protect against the many perils drivers in The Centennial State might face. Get a free auto insurance quote and learn more about what car insurance is required in Colorado, additional coverage options, and how to stay protected for less.
Colorado Auto Insurance Requirements
Colorado car insurance laws require all drivers to maintain what is known as 25/50/15. This means all drivers must have at least $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage.
The Colorado minimum auto insurance laws are in place to help everyone on the road avoid having to pay for a financial loss that they didn’t cause. Because CO is an at-fault state, if you cause an accident, you are responsible to restore the losses to another party.
Without mandating coverage, it would be much more difficult to insure that losses were restored. This could leave many motorists scrambling to secure legal representation and go through the process of securing reparations.
Maintaining financial responsibility is something all drivers benefit from. There are quicker resolutions, financial safeguards, and less of a process after accidents because of them. But there can still be areas in which drivers still face these situations after an accident.
Although the Colorado state minimum auto insurance coverage has its policy limits, some accidents may exceed them. Furthermore, there are other instances in which vehicles may become damaged outside of an accident.
It’s also important to note that liability coverage doesn’t cover your vehicle and if an accident is bad enough, you might be left paying to restore your own vehicle, the property damage of another party, and even medical bills if you only have minimum coverage.
Ideally, there would be no accidents, but until that day, it’s best to speak with a licensed insurance agent about your coverage options. The right agent will help you determine your risks, protect against them with an appropriate amount of coverage, not just the bare minimum, and do so in a manner that saves you money.
Colorado Car Insurance Grace Period
Maintaining your Colorado car insurance minimum requirements is important, but real life isn’t always black and white. Things happen and sometimes, while important, auto coverage payments aren’t at the forefront of your mind.
While the best practice is to always maintain an active auto insurance policy, there are grace periods that help you stay protected should you miss a payment, purchase a new vehicle, or whatever else may qualify.
The grace period that your car insurance has is a perfect example of why it’s important to note the details of your coverage. This is because grace periods vary from person to person, policy to policy, and carrier to carrier.
An overall range of normal grace periods could be 24 hours to 10 days to 30 days and anything in between. To avoid a lapse in coverage and all of the legal, and financial ramifications that it may bring, here’s what drivers in Colorado should do:
- Ensure that your premiums are paid on time each month. Automatic billing can help and can even earn you a discount.
- Always work with a reliable, licensed auto insurance agent to maintain a current policy and avoid a lapse in coverage.
- Notify your insurance agency if there is a life change. In the event that you miss a payment, it’s also important to contact them immediately and speak with them to rectify this error.
Grace periods exist to help everyone stay protected, but should not be abused. There are limitations that exist and eventually, your car insurance provider can simply drop you as a client for nonpayment.
Colorado Proof of Insurance Law
The Motor Vehicle Financial Responsibility Law (Colorado Code Title 42, Article 7) is the legislation that requires drivers in the state to maintain liability coverage. Though requirements may change, as of this writing, Colorado car insurance laws for minimum coverage are as described above.
Colorado Rental Car Insurance Laws
The laws surrounding renting a vehicle in Colorado and insurance are the same as when you own one. All drivers must have the state minimum liability coverage before operating a rental vehicle on the road.
But everything else is optional and in most cases, if you have liability coverage for your own vehicle, you don’t have to purchase rental insurance from the rental car company you are using. Of course, your coverage may vary, so always check with your agent before making such decisions.
There are, however, additional considerations you’ll want to take into account. For example:
- If you don’t have a collision or comprehensive policy, you may want to purchase additional coverage from the rental company. Remember, liability coverage is mandatory but it only helps restore the losses to other vehicles.
- Renting a vehicle inside the state of Colorado means you’re protected, but if you’re traveling abroad, you’re going to need to rely on additional coverage. Virtually all auto policies in the U.S. don’t carry over into other countries such as Mexico or Canada.
Everyone is different when it comes to their coverage and risk tolerance. It’s important to assess such details before renting a vehicle. You may even receive coverage through your credit cards. Overall, if you need a rental, speak with your insurance agent to determine your best course of action.
Colorado Full Coverage Insurance Requirements
While liability coverage is required according to Colorado car insurance requirements, full coverage is not. Full coverage consists of three separate coverages that combine to protect drivers better.
This includes liability, but there are also collision and comprehensive coverages that are optional. We’ve already revied what liability coverage brings to the table, here are how drivers are protected by the other two coverages:
- A driver with collision coverage receives help covering their own losses after an accident. It doesn’t matter who is at fault, all you have to do is pay your deductible, and then you’ll receive reimbursement to help restore your losses.
- There are plenty of perils that can cause damage to your vehicle outside of an accident, such as a fallen tree, hail damage, wildfire damage, etc. This is where comprehensive coverage comes in. You’ll have to pay your deductible, but afterward, you receive a reimbursement to restore your vehicle.
Liability coverage is important not just for staying legal but also for protecting your finances, however, without additional coverage you may still be vulnerable to paying hefty expenses following an accident.
It may not be required by law, but full coverage is an important consideration for all drivers. Speaking with a licensed auto insurance agent can help you pinpoint the right coverage for your needs, and with full coverage, you can receive discounts to help gain more protection at a discounted rate.
Does Colorado Require At-Fault Auto Insurance?
Yes, Colorado requires at-fault auto insurance, because this term is often confused with its proper name, liability coverage. Remember, there are coverage limits that each driver must have according to Colorado auto insurance requirements that protect against bodily injury and property damage.
The state of Colorado is an at-fault state, meaning that if you are the cause of an automobile accident, you are responsible for restoring the losses involved. This is why there are mandatory coverage laws revolving around financial responsibility. To protect others who suffer a loss due to the error of another party.
How To Stay Covered for Colorado Auto Insurance Requirements
As a driver, navigating the Colorado auto insurance minimum coverage requirements may be a concern, but it doesn’t have to be. Here at Freedom Insurance Group, we help drivers stay legal, assess their risks, and provide solutions to help manage them while on the road.
If you shop for car insurance in Colorado, even if you’re just looking to stay legal, you’ll notice that the amount you can pay for coverage will vary greatly from carrier to carrier. There’s a reason for this and it’s in part, out of the hands of drivers:
- All carriers are looking at the amount of risk potential clients possess before insuring them and their vehicles.
- More risk will mean higher premiums and while you can control some of these factors, such as your driving record, type of vehicle, or how much coverage you need, other factors, such as statewide driving trends and the weather, are out of your control.
- Furthermore, each carrier may look at the same risk factors but they do so in different ways. This is why premiums change, even for the same coverage, among different brands. Each carrier sets premium prices according to its own metrics.
So with this in mind, it’s easy to see why so many drivers have difficulty finding affordable car insurance. The best way to find the cheapest coverage is to shop among many different brands for a policy, but this can take quite some time.
Our agents can help you save money and time through our partnerships with over 25 top-rated carriers. Not only do you receive the coverage you need for less, but you gain peace of mind knowing it’s from a carrier that you can trust.
Because we work with so many great partners, we can compare your coverage quickly, find more discounts, and customize your protection.
We’ll even help you bundle coverage with your home insurance for even more savings. For help navigating the Colorado car insurance laws, a quote, or if you simply wish to compare your rates, contact our agents today!