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What to Know
As a Colorado resident, you must carry at least $25,000 per person in bodily injury liability, $50,000 per accident in bodily injury liability, and $15,000 in property damage liability. This is known as 25/50/15 liability coverage.
Just know that liability-only coverage does not cover you or your vehicle - only other drivers, their passengers, and their vehicles.
Colorado's Minimum Auto Insurance Requirements
Colorado requires drivers to carry bodily injury liability and property damage liability coverage that meet the state's minimum limits. The Colorado Division of Insurance sets these minimum coverage requirements, and they apply when you cause a crash.
Here's what each of the three numbers pays for, because "per person" and "per accident" read alike but work differently.
| Coverage | Colorado minimum | What it pays for |
|---|---|---|
| Bodily injury per person | $25,000 | Injuries to any one person you hurt in a crash you cause |
| Bodily injury per accident | $50,000 | The total for everyone you injure in one crash, combined |
| Property damage | $15,000 | Another person's car or property you damage |
How Colorado liability car insurance works
Liability car insurance pays the other party when you're at fault, up to your limits. If one injured person's bills exceed your per-person limit, your policy stops paying once it reaches that limit. You may be held liable for paying the remaining balance.
Required vs. Optional Coverage in Colorado
Only liability is required in Colorado. Uninsured/underinsured motorist coverage, collision, and comprehensive are all optional under state law, though a lender may require collision and comprehensive on a financed or leased car.
This table separates what the law requires from what you choose, along with who each coverage protects.
| Coverage | Required by Colorado law? | Who it protects | What it pays for |
|---|---|---|---|
| Bodily injury liability | Yes, at state-set minimum limits | Other people | Injuries to others in a crash you cause |
| Property damage liability | Yes, at a state-set minimum limit | Other people | Damage you cause to another person's car or property |
| Uninsured/underinsured motorist (UM/UIM) | No, optional | You | Your injury costs when the at-fault driver has no insurance or too little |
| Collision | No (lenders often require it) | You | Damage to your own car from a crash |
| Comprehensive | No (lenders often require it) | You | Theft, weather and other non-crash damage to your car |
Uninsured motorist (UM) coverage pays when the driver who caused the crash has no insurance. Underinsured motorist (UIM) coverage pays when that driver has insurance, but their limits run out before your bills do.
Nearly 20% of Colorado drivers did not carry insurance in 2023, according to industry group Triple-I. The Insurance Research Council estimates Colorado's underinsured motorist rate was at 49.7% that year.
Why the Colorado Minimum Often Isn't Enough
If you own a car worth repairing, or you have savings, wages, or a home you'd want to keep out of a lawsuit, 25/50/15 alone is a budget choice with real exposure. It isn't a safe default. You can still choose it. Just choose it knowing what it leaves open on both sides of a crash.
Here's an example: You cause a crash. Two people are hurt, with $40,000 and $30,000 in medical bills, and their car needs $22,000 in repairs.
- Your policy pays $25,000 toward the first person, leaving $15,000 unpaid.
- It pays $25,000 toward the second person, leaving $5,000 unpaid. That also reaches the $50,000 per-accident cap.
- It pays $15,000 toward the car, leaving $7,000 unpaid.
That leaves $27,000, and it's yours to cover.
Now flip the crash. Someone else causes it, and you're the one left with significant medical bills. If they carry only the state minimum, their insurer stops paying once it reaches the per-person limit. Without UIM on your own policy, you pay the remaining balance.
What Happens if Your Colorado Coverage Lapses
Colorado checks coverage through the Motorist Insurance Identification Database (MIIDB), which insurers report to, so a lapse can show up in the database even if you're never pulled over.
According to the Colorado Division of Motor Vehicles, a first offense for driving uninsured can bring a fine and license points. After a suspension notice, you generally have seven days to provide proof of insurance, obtain SR-22 insurance, or request a hearing. An SR-22 is a form your insurer files with the state to certify that you carry the required coverage.
If a notice arrives, or you're between policies, work through it in this order:
- Start with the date on the notice. The seven-day window starts then, so act on the first letter instead of waiting for a second.
- Call your insurer and ask them to confirm your policy is active and that they've reported it to the state.
- Send proof or request a hearing, following the instructions on the DMV notice itself.
- When you switch insurers, set the new policy's start date first, then cancel the old one. Overlap by a day is fine. A one-day gap is a lapse.
Frequently Asked Questions
What car insurance is required in Colorado?
Colorado requires liability coverage only, at state-set minimum limits of 25/50/15 covering injuries and property damage. Uninsured/underinsured motorist coverage, collision, and comprehensive are all optional unless a lender requires them.
Is uninsured motorist coverage required in Colorado?
No. UM/UIM is optional under Colorado law, even though the Insurance Research Council estimated Colorado's underinsured motorist rate at 49.7% in 2023, the highest in the country. That gap is worth pricing before you decide to skip it, since the state's liability minimums don't cover you if the other driver can't pay.
What happens if I'm caught driving without insurance in Colorado?
A first offense for driving uninsured in Colorado can bring a fine and license points, according to the Colorado DMV. If you get a suspension notice, you generally have seven days to provide proof of coverage, file an SR-22, or request a hearing.
I just moved to Colorado. When do I need Colorado car insurance?
You'll need a policy that meets Colorado auto insurance requirements before you register your car with the state. Check your county clerk's registration instructions for the exact process, and ask your current insurer whether they can rewrite your policy for a Colorado address or if you need a new one.
Does Colorado's minimum coverage pay for damage to my own car?
No. Colorado's 25/50/15 liability minimum pays for the other driver's injuries and property damage when you're at fault; it doesn't cover your own car or your own medical bills. To cover your vehicle, you'd need collision coverage for crash damage and comprehensive for things like theft, hail, or vandalism.
