To legally drive in Colorado, you must carry minimum liability insurance and proof of coverage. Colorado follows a fault-based (tort) system, where the driver who causes an accident is responsible for covering damages. Here’s what drivers need to know in 2025.
- Minimum liability: 25/50/15
- Proof of insurance required at all times
- UM/UIM must be offered but can be declined in writing
- Electronic proof accepted
Colorado’s Minimum Legal Auto Coverage
As of 2025, Colorado law requires the following minimum auto insurance coverage:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $15,000 per accident
This is often referred to as 25/50/15 coverage. It covers damages and injuries you cause to others in an at-fault accident.
In Colorado With No Auto Insurance?
Colorado law requires insurers to offer UM/UIM coverage in equal amounts to your bodily injury limits. You may reject it in writing.
- UM/UIM Bodily Injury: Matches your selected BI limits unless declined
- UM/UIM Property Damage: Optional, may overlap with collision coverage
This protects you in hit-and-run accidents or when the at-fault driver is uninsured or underinsured.
Other Coverages Not To Forget About
For better protection, many Colorado drivers choose to add optional coverages such as:
- Comprehensive Coverage: Protects against theft, vandalism, hail, and natural disasters
- Collision Coverage: Covers your vehicle regardless of fault
- Medical Payments (MedPay): Pays for your medical bills regardless of fault (often a $5,000 minimum)
- Gap Insurance: Covers the gap if your vehicle is totaled while under a lease or loan
- Roadside Assistance: Helpful for emergencies and breakdowns
Note: Full coverage (comprehensive + collision) is typically required by lenders or leasing companies.
Ways To Verify Car Insurance In Colorado
You must carry valid proof of insurance in your vehicle at all times and present it:
- During traffic stops
- After an accident
- When registering a vehicle
Colorado accepts both paper insurance cards and electronic proof via mobile apps or digital files.
Laws Against Driving Without Insurance In Colorado
Penalties in Colorado escalate with each offense:
- First Offense: $500 minimum fine, 4 license points, and license suspension until proof provided
- Second Offense: $1,000 fine, 4-month license suspension
- Third+ Offense: 8-month suspension, up to 40 hours community service
Serious or repeat offenses may also require proof of financial responsibility, similar to an SR-22.
Colorado Is a Fault-Based Insurance State
In Colorado, the at-fault driver (and their insurer) is responsible for damages. If damages exceed policy limits, the driver may be personally liable.
Why Consider Higher Coverage Limits?
Colorado faces unique insurance risks that make minimum coverage insufficient for many drivers:
- High auto theft rate — among the highest in the U.S.
- Frequent hail damage claims
- Rising repair and medical costs
- Uninsured driver rate estimated between 16%–17.5%
“Colorado has the highest auto theft rate in the nation… insurance companies jack up rates hoping you’ll stick around.”
Frequently Asked Questions About Colorado Car Insurance
Is Colorado a no-fault state?
No. Colorado uses an at-fault (tort) system where the driver who causes an accident pays for the damages.
Is UM/UIM coverage mandatory in Colorado?
No. It is not required, but it must be offered by your insurer. You may reject it in writing.
What is an SR-22 in Colorado?
Colorado does not use SR-22 forms in the same way as other states, but it may require other forms of proof of financial responsibility after serious violations.
Can I show proof of insurance on my phone?
Yes. Colorado allows digital proof of insurance during traffic stops and registration.