Colorado Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

If you own a vehicle, Colorado’s car insurance laws require you to have liability coverage. It gives you protection against costs from third-party injuries and property damage. The minimum car insurance you can have in Colorado is a policy with 25/50/15 liability limits. You must also have insurance to register your car. The penalty for driving with no insurance in Colorado may include fines, license suspension and community service.


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What Is the Minimum Car Insurance Requirement in Colorado?

If you want to operate a vehicle in Colorado, you need to carry insurance. Your policy must have at least 25/50/10 liability limits to meet the minimum car insurance requirement in Colorado. It covers the following:

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

Although this fulfills Colorado’s minimum car insurance requirements, sometimes purchasing a policy with higher limits is better. There are several factors to consider when calculating how much insurance you need in Colorado.

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What Does This Minimum Coverage Mean?

25/50/15 limits mean your insurer will cover third-party costs from medical fees up to $50,000 for each accident, with a $25,000 limit per individual. They also cover $15,000 worth of property damage.

Understanding what your liability limits mean is crucial because Colorado is an at-fault state. It means you’re obliged to cover the other driver’s medical and repair expenses if you cause an accident. Costs from accidents are usually higher than the state minimum coverage threshold — once you’ve exhausted your limits, you’ll have to pay for the remaining amount from your pocket. Increasing your limits is typically encouraged — it may raise your annual premium, but it provides you more protection while driving.

How Much Does the Minimum Car Insurance Cost in Colorado?

The average cost of car insurance in Colorado is $1,450 per year. You may get a significantly different rate when applying for quotes since insurers consider several factors when setting premiums. These include your age, driving experience, driving history and credit score. Which city you live in and the provider you choose also affects your rates.

USAA offers the cheapest minimum liability insurance in Colorado at $295 per year on average. Their policies, however, are only available to present and former members of the military and their families. A more widely available option is GEICO — you can purchase a policy with similar coverage for an annual average premium of $373.

Cheapest Minimum Liability Car Insurance in Colorado

Cheapest Minimum Car Insurance in Colorado
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These prices are only estimates based on rates for an average Colorado driver and should not be used to compare insurance prices.

The table above shows rates for policies with Colorado’s minimum car insurance requirements of 25/50/15. MoneyGeek used the profile of a 40-year-old male with no violations and good credit driving a 2010 Toyota Camry.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Colorado.

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What Is the Minimum Car Insurance Requirement in Colorado While Leasing a Car?

If you want to lease a car in Colorado, you still have to purchase insurance. Having a policy with limits following Colorado’s minimum car insurance requirements may not suffice. Insurance requirements for car leases in Colorado are different from those of the state because each lender sets its own minimums.

Most leasing companies require you to have full coverage insurance, meaning it includes comprehensive and collision coverage. Liability limits should also typically be at least 100/300/50.

If you’re planning to lease a car, make sure to call your leasing company and ask for specific details about their process and requirements.

MoneyGeek recommends getting full coverage car insurance with liability limits of at least 50/100/50. You may also consider adding uninsured motorist insurance to your policy, even if it isn’t part of Colorado’s car insurance requirements. 16.3% of Colorado drivers do not have insurance — if you get into an accident with one of them, you may not receive compensation for your expenses even if they were at fault. These are factors you need to consider when figuring out how much car insurance you need.

Penalties for Driving Without Car Insurance in Colorado

There are steep penalties in Colorado for drivers caught driving with no insurance. These are as follows:

  • Fines worth at least $500 for the first offense and at least $1,000 for subsequent offenses
  • Up to 40 hours of community service
  • Suspension of your driver's license until you provide proof of insurance
  • 4 points against your driver’s license

If you want to have your driver’s license reinstated, you must pay a $40 fee. You’ll also need to file for an SR-22 and carry it for three years.

Frequently Asked Questions About Car Insurance in Colorado

Drivers who want to understand Colorado’s car insurance laws have several questions. Here are the answers to the most frequently asked ones.

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About the Author


Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.