Colorado Auto Insurance
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Colorado Auto Insurance Requirements
Whether for work or for pleasure, Colorado motorists always have reason to be on the road. State laws require owners and operators of vehicles registered in Colorful Colorado to meet certain requirements for Colorado auto insurance. Read on to learn what they are.
What’s important to understand about Colorado is that it’s a “No Fault” states, meaning that in an accident, each vehicle operator’s respective auto insurer will pay the costs associated with the insured’s bodily and/or property damage, regardless of which operator is found to have caused the accident. No-fault laws were created as a way of keeping to a minimum resulting lawsuits as well as auto insurance rates.
Understanding Colorado No-Fault laws
Note however that the “no-fault” laws in Colorado do have limits. Should damage to persons or property be extensive and the associated costs exceed those limits, it’s possible the other driver could be required to appear in court where the extent of that driver’s responsibility will be decided.
Minimum Colorado State Requirements
Because of this, the state of Colorado requires drivers to purchase liability coverage. Minimum state requirements are 25/50/15 meaning that a maximum of $25,000 will be paid towards bodily injury and vehicle repair expenses in a single-occupant accident. In situations where more than one occupant in the other vehicle is involved, the insurer will pay a maximum of $50,000 towards the occupants’ combined expenses. A maximum of $15,000 will be paid to cover property damage resulting from the accident.
Personal Injury Protection Coverage (PIP)
Colorado also requires motorists to carry Personal Injury Protection coverage, also known as PIP. PIP helps cover a portion of the insured’s medical expenses resulting from an accident. When a policyholder opts for comprehensive/collision coverage, state PIP minimums are usually sufficient.
Comprehensive/Collision Coverage
Comprehensive/collision coverage is optional in Colorado. Collision covers the insured’s vehicle repair costs, up to policy limits, when the insured is at-fault in an accident. Comprehensive kicks in when an insured’s car is damaged because of weather, animals and other situations beyond the driver’s control.
Uninsured/underinsured Motorist coverage is also optional in Colorado, and is designed to protect the driver when he/she is hit by a hit-and-run driver or a driver without auto insurance, or whose insurance coverage is insufficient to cover accident-related costs.
For more information visit www.dora.state.co.us or call the Colorado Division of Insurance at 1-800-930-3745. The insurance division is headquartered in Denver.