Colorado Car Insurance Requirements (Updated for 2025)

Driving in Colorado requires you to carry at least the state minimum liability insurance and proof of coverage. Colorado is a fault-based state; driving uninsured carries financial and legal risk.

Minimum Liability Coverage in Colorado

As of 2025, Colorado law mandates the following minimum liability insurance:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $15,000 per accident

Often expressed as 25/50/15 coverage.

Uninsured/Underinsured Motorist Coverage (UM/UIM)

Colorado requires all auto insurers to offer UM/UIM coverage matching your BI limits—but you may reject it in writing.

• UM/UIM bodily injury typically matches your selected liability limits
• UM/UIM property damage (UMPD) is optional and may overlap with collision coverage

This coverage applies to hit-and-run or drivers who lack adequate insurance.

Optional Coverages to Consider

• Comprehensive Coverage (e.g., hail, theft, vandalism)
• Collision Coverage
• Medical Payments (MedPay) – often $5,000 minimum
• Roadside Assistance
• Gap Insurance (for leased/financed vehicles)

Lenders typically require full (comprehensive + collision) coverage.

Proof of Insurance Requirements

You must carry proof of insurance—paper or digital—and present it upon request during traffic stops, accidents, or vehicle registration.

Penalties for Driving Without Insurance

• 4 points on your license
• $500 minimum fine for first offense; $1,000 fine for repeat offenses
• 1st offense: suspension until proof is provided
• 2nd offense: 4‑month license suspension
• 3rd+ offense: 8‑month suspension, up to 40 hours community service

Colorado is a Fault State

At-fault driver’s insurance pays damages. If damages exceed policy limits, you’re financially responsible.

Why Carry Higher Coverage?

Colorado has a high rate of uninsured drivers—around 16%–17.5%—and costly claims due to hail, theft, and accidents. Many policyholders report significant rate hikes over recent years due to these factors. For example:

Colorado has the highest auto theft rate in the nation… insurance companies jack up rates hoping you’ll stick around.

Compare Auto Insurance Quotes in Colorado

Rates vary based on zip code, driving record, age, vehicle, and coverage levels. Compare quotes from top Colorado insurers to find the best fit.

🔍 Start Comparing Colorado Car Insurance Quotes →

FAQs

Is Colorado a no‑fault state?

No. Colorado uses an at‑fault (tort) system—those at fault pay for damages.

Is UM/UIM coverage mandatory?

No, but insurers must offer it. You must sign a written waiver to decline.

What is an SR‑22 in Colorado?

Colorado doesn’t use “SR‑22” forms—but may require proof of financial responsibility or filing after serious violations.