Colorado Minimum Coverage Car Insurance: Requirements and Costs (2024)

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Updated: May 20, 2024

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In Colorado, drivers should carry the minimum car insurance requirements, which include $25,000 bodily injury liability per person, $50,000 per accident and $15,000 for property damage liability. Note that Colorado is an at-fault state, meaning the driver at fault for an accident is responsible for covering any resulting damages and injuries.

The average monthly cost for the state minimum coverage hovers around $37. While this provides a basic level of protection, Colorado motorists may want to explore beyond the cheapest car insurance in Colorado to ensure a more comprehensive policy that fits their unique needs.

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Colorado Division of Insurance to give you the most accurate cost data for a range of Colorado drivers.

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These rates reflect the cost of minimum coverage car insurance requirements in Colorado as of June 2024.

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Colorado Minimum Coverage Car Insurance Requirements

In Colorado, drivers are legally required to have minimum coverage auto insurance to operate a vehicle. The following are the minimum amounts of coverage mandated by Colorado:

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

Colorado is a fault state, which requires the person at fault for an accident to pay for the damages. Whether a state is a fault or no-fault state affects insurance costs and how claims are processed after a car accident. In a no-fault state, drivers typically turn to their own insurance coverage to pay for minor injuries, regardless of who is at fault, often increasing the cost of personal injury protection coverage. Fault states require the person at fault for an accident to pay for the damages.

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Colorado does not require drivers to carry collision or comprehensive insurance. However, if you finance or lease your vehicle, lenders often mandate that you have collision and comprehensive coverage to protect their financial interest in your car. These coverages pay for damages from accidents, theft, natural disasters and other non-collision incidents. Ultimately, if you own your vehicle outright, deciding to acquire collision or comprehensive insurance is at your discretion. Still, it's recommended for high-value vehicles or where potential out-of-pocket repair costs are a concern.

What Does Minimum Coverage Cover?
What Liability Insurance Covers
What Liability Insurance Doesn't Cover

Injuries to others if you are at fault in an accident

Your injuries

Damage to another person’s property if you are at fault in an accident

Damages to your car

Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy

Repairs for weather-related accidents or if an animal hit you

Property damage caused by uninsured/underinsured drivers, unless additional coverage is purchased

The table above is based on the Colorado state minimum car insurance requirements, which mainly include liability coverage for bodily injury and property damage. Specific coverage details are subject to the terms and conditions of an individual's policy.

Average Cost of Minimum Coverage Car Insurance in Colorado

The table below outlines the average cost of minimum coverage car insurance in Colorado by age group, presenting how age influences insurance costs. In Colorado, the highest premiums are commonly found among drivers aged 22 to 29. Young drivers face greater rates due to their inexperience, which statistically leads to a higher risk of accidents.

22-29Annual Premium$565Monthly Premium$47
30-59Annual Premium$443Monthly Premium$37
60 +Annual Premium$467Monthly Premium$39

Cheapest Companies for Minimum Coverage Car Insurance in Colorado

These are the most competitive rates for residents in Colorado seeking budget-friendly state minimum coverage insurance options:

  • American National P&C: $283 per year and $24 per month
  • Colorado Farm Bureau: $293 per year and $24 per month

Finding affordable minimum coverage insurance is important, but it is also crucial to ensure that you choose a plan that aligns with your individual needs. Make an informed decision by exploring the best car insurance in Colorado.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
American National P&CAnnual Premium$283Monthly Premium$24
Colorado Farm BureauAnnual Premium$293Monthly Premium$24
GEICOAnnual Premium$378Monthly Premium$31
Auto-Owners Insurance CoAnnual Premium$412Monthly Premium$34
ProgressiveAnnual Premium$497Monthly Premium$41
State FarmAnnual Premium$506Monthly Premium$42
American FamilyAnnual Premium$507Monthly Premium$42
Farmers Union InsuranceAnnual Premium$514Monthly Premium$43

Optional Add-On Coverages in Colorado

In Colorado, optional add-on coverages include uninsured/underinsured motorists, collisions, comprehensive coverage, medical payments and roadside assistance. These options enhance protection beyond state minimum coverage, covering expenses from accidents with uninsured drivers, vehicle repairs, medical bills and towing services. Understanding how much car insurance you need can help tailor coverage to your lifestyle.

Add-On Coverage
What It Covers
What It Doesn't Cover

Uninsured/Underinsured Motorist Coverage

Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.

Damage to your vehicle if you are at fault or damages that exceed policy limits.

Personal Injury Protection (PIP)

Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault.

Vehicle damage or injuries to the other driver.

Roadside Assistance

Services like towing, flat tire changes and jump-starts when your car breaks down.

Cost of parts or repairs needed after the tow.

Gap Insurance

Pays the difference between your car's current value and what you still owe if it's totaled or stolen.

Vehicle depreciation or overdue loan payments.

Rental Car Reimbursement

The cost of a rental car while your vehicle is being repaired after a covered event.

Fuel, insurance or other rental extras.

Penalties for Driving Without Insurance in Colorado

The cost of a ticket for driving without insurance in Colorado can be more severe if you've been caught without coverage before. For first-time offenders, penalties may be lighter, but they escalate with subsequent offenses.

Penalties include:

  • Vehicle impoundment: Your car may be taken to an impound lot or tow yard, and you will have to pay the associated fees for towing and storage.
  • Suspension of vehicle registration: You cannot legally drive your car until the suspension of registration is lifted.
  • Driving license suspension: Your driving privilege is denied for a defined period, and a reinstatement fee is required.
  • Requirement to file an SR-22: You might have to file an SR-22, a form that proves you have insurance, which will increase your insurance premiums.
  • Jail: If you are involved in an accident without insurance, you could face jail time of up to six months.

Driving with insurance is the law, and it's important to adhere to it to avoid penalties and to protect yourself and others on the road. Remember, ensuring you have minimum coverage is a responsibility that comes with operating a vehicle.

What to Do if Your Policy Is Canceled

If your car insurance is canceled in Colorado, it's important to immediately stop driving and contact your insurance agent. Driving without insurance is against the law and can lead to severe penalties. After cancellation, you must acquire a new policy to legally drive. The Colorado Department of Motor Vehicles (DMV) keeps track of insured vehicles and will be alerted of your insurance status through the state's monitoring system. If you are uninsured, you might face license suspension, fines and vehicle impoundment.

If you're having trouble obtaining coverage through standard insurers, Colorado offers the Colorado Motor Vehicle Insurance Plan (CO AIP) to high-risk drivers. This plan ensures everyone has access to the minimum coverage required to drive. All drivers in Colorado need to carry at least the state minimum auto insurance to comply with the law and protect themselves on the road. For more details on insuring a high-risk vehicle, you can visit the official Colorado state government website.

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Your car insurance policy in Colorado may have been canceled for several reasons:

  • Non-Payment: If you don't pay your premium, insurers will cancel your policy.
  • Fraud: Lying or providing false information can lead to cancellation.
  • License Suspension: Losing your license will result in losing your insurance.
  • High Risk: Causing accidents or getting many tickets makes you a high-risk driver, and insurers might cancel your policy.
  • State Minimums: Not maintaining state minimum coverage violates insurance laws, leading to cancellation.

FAQ: Colorado Minimum Coverage Car Insurance

All drivers must understand the minimum car insurance requirements in Colorado to ensure legal compliance and financial protection. Here, we address frequently asked questions to help you grasp the coverage you need to hit the road with peace of mind in The Centennial State.

What is the minimum car insurance coverage in Colorado?
Why does Colorado require minimum automobile liability coverage for motorists?
Do you need comprehensive insurance in Colorado?
What happens if you drive uninsured in Colorado?

About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.