Colorado Car Insurance
Last Updated on September 2, 2020
Colorado is a big state with countless roadways. Whether you’re looking for a new auto insurance policy in Colorado, or are just now moving to the Rocky Mountain state, be prepared for some differences from your old coverage. Below, we will highlight the insurance requirements in the state of Colorado and also help you find cheap auto insurance coverage in the state.
The Best Car Insurance Companies in Colorado
Colorado drivers are served by some of the best car insurance companies in the United States. All major nationwide car insurance companies in the United States serve drivers in Colorado. As with any state, you might also find some smaller, local providers that offer good car insurance coverage at a competitive price.
Some of the lesser-known but still popular car insurance companies in Colorado include Colorado Farm Bureau, Encompass, Unitrin, The Hartford, Auto-Owners, American Family, and Grange Insurance Association. Colorado drivers can also buy policies from the same popular nationwide companies, including State Farm, Allied, Progressive, Farmers, GEICO, Allstate, and MetLife.
Recommended Car Insurance Coverage in Colorado
How much car insurance do you need in Colorado? It’s important to not be underinsured in Colorado. The state requires a bare minimum of the following coverage limits on your insurance policy:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $15,000 per accident for property damage
Any additional car insurance is optional. If you’re being cautious, then you may wish to exceed the limits above. Some Colorado drivers choose to have $100,000 or more of bodily injury liability per accident, for example, while other drivers increase the coverage limit to over $1 million. However, you’re not legally required to have car insurance in Colorado beyond the requirements above.
Car insurance in Colorado is mandatory for all drivers. The state operates under a tort law system. Until 2003, Colorado was a “no fault” state. However, to lower costs and reduce fraudulent claims across the state, the government decided to implement a tort law system from that point forward.
Average Car Insurance Rates in Colorado
The average driver in Colorado pays about $1,360 per year for car insurance.
You can find quotes for significantly less with certain providers. Grange Insurance Association, State Farm, American Family, Auto Owners, and The Hartford, for example, all offer lower-than-average rates to Colorado drivers.
Obviously, rates will vary widely among individuals. The rates you pay as a young male, for example, will be significantly different than the rates you pay as a 55-year old male with a long history of clean driving.
Best Car Insurance for Teen Drivers in Colorado
Teen drivers in Colorado are legally required to have car insurance. However, teen drivers on a learner’s permit will not require car insurance (assuming they’re driving the fully-insured family vehicle).
Once the teen gets a provisional license, you’ll need to upgrade your car insurance policy. In terms of teen driver insurance in Colorado, rates vary widely between providers. You can expect to pay significantly more for teen driver car insurance, but by comparing quotes, you can reduce the amount you pay.
Which Colorado Cities Have the Cheapest Car Insurance?
Car insurance rates vary between cities in Colorado. Generally speaking, drivers in larger, more urbanized areas pay some of the highest rates for car insurance in the state, while drivers in more rural areas will pay less.
If you live in the greater Denver metropolitan area, for example, then you can expect to pay higher rates for car insurance than someone who lives in more remote parts of the state.
Auto Insurance Minimum Requirements In Colorado
These days Colorado is no longer a “No-Fault” state when it comes to auto insurance. In 2003, the state switched to a “Tort” system. Under this new system, drivers no longer need to carry Personal Injury Protection (PIP) on their policies. PIP covers certain medical expenses incurred in an accident. If you carry health insurance from another source (from work, parents, etc.), this will satisfy your auto requirements and drop your annual auto premiums by as much as 20%.
On the other hand, you will be held liable for the damages you cause in an accident. This means lawsuits may be brought against you to compensate for damages not covered under your policy, as well as other losses, such as pain and suffering. Because of this, you may want to re-evaluate specific aspects of your policy.
Optional coverage in the state of Colorado includes collision, comprehensive, uninsured and underinsured motorists, and may available through your auto insurance representative.
|Coverage Type||Required?||Minimum Coverage Amount Required|
|Bodily Injury Liability||Yes||$25,000 per person$50,000 per accident|
|Property Damage Liability||Yes||$15,000|
|Uninsured/Underinsured Motorist||No||$25,000 per person$50,000 per accident|
You may want to consider purchasing limits of coverage higher than those required by law to protect your assets or property, as you may be personally responsible for any damages above the policy limits.
Auto Insurance for Leased Vehicles in Colorado
Most leasing companies in Colorado typically require drivers to maintain insurance coverage which exceeds the minimums set by Colorado state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage for your leased vehicle:
- Bodily injury liability coverage: $100,000 per person/$300,000 per accident
- Property damage liability coverage: $50,000
- Comprehensive and collision coverage: $500 maximum deductible
Contacts for Auto Insurance Information in Colorado
|Colorado Division of Motor Vehicles
1881 Pierce St.
Lakewood, CO 80214
|Colorado Division of Insurance
1560 Broadway, Suite 850
Denver, CO 80202