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Colorado Car Insurance Laws: What Drivers Need to Know

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Auto insurance requirements in the state of Colorado

Drivers in Colorado are required by law to hold liability coverage of at least $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 per accident for property damage.

Colorado Auto Insurance Laws

In the state of Colorado, drivers who are responsible for a car crash are financially responsible for any resulting injuries or property damage. In Colorado, automobile insurance is a requirement by law. Drivers or individuals who own motor vehicles in the state of Colorado are required to carry certain types of automobile coverage.

Even in situations where an at fault driver has sufficient motor vehicle insurance, dealing with an insurance company is still often a stressful experience for individuals. Fortunately, a skilled Colorado car crash attorney can help an individual respond to the various issues related to automobile insurance coverage that might arise.

Colorado Insurance Law

Law in the state of Colorado requires that every owner of a motor vehicle who operates a vehicle on public highways or knowingly permits the operation of a motor vehicle on the public highways of the state must fully comply with various insurance requirements.

Drivers are required, for example, to carry a minimum amount of $25,000.00 in liability insurance to cover the injuries that driver may cause to other motorists or pedestrians as a result of his or her negligence.

Minimum Insurance Requirements

If a motor vehicle driver can afford to carry more insurance than minimum requirements, it is usually a wise idea to do so. Colorado law, however, requires that motorists carry certain types of insurance coverage with minimum liability limits, including the following:

  • Bodily Injury Liability. This type of coverage protects individuals who cause an accident in which someone else is injured or even killed. The state of Colorado requires that motor vehicle operators carry at least $25,000 per person for bodily injury and $50,000 per accident for bodily injuries. This type of agreement is often referred to as “25/50”.
  • Collision Coverage. This type of coverage applies to damage to a car if one vehicle collides with another car, a wall, or any other object. The state of Colorado does not require individuals to carry collision coverage, but individuals who have an automobile loan from a bank might be required to carry collision coverage as a term of the loan.
  • Comprehensive Coverage. This type of insurance applies to any case where an individual’s vehicle is stolen or damaged in ways that do not involve a collision. Some of the various situations to which comprehensive coverage applies include encounters with wildlife, earthquakes, explosions, falling objects, fire, flood, hail, and theft. Comprehensive coverage is optional in the state of Colorado but may be required as a term of a loan.
  • Medical Payments Coverage. As of January 1, 2009, the state of Colorado requires that insurers offer $5,000 in coverage. Individuals can choose not to buy medical payment coverage or purchase a different amount, but must do so in writing or in the same manner that the parties buy insurance like over the internet or telephone.
  • Property Damage Liability. This coverage protects individual who damage someone else’s property. This property in question is often someone else’s automobile, but property damage can include buildings, garage doors, utility poles, and other types of physical property. The state of Colorado requires that individuals carry a limit of $15,000 per occurrence.
  • Uninsured or Underinsured Motorist Coverage. This type of protection applies to a variety of personal injuries such physical injuries, pain and suffering, lost wages, and medical and other expenses incurred when an individual is hit negligently by a driver who lacks adequate automobile insurance. In the state of Colorado, insurers are required to offer Uninsured or Underinsured Motorist Coverage of $25,000 for uninsured motorists and $50,000 for underinsured motorists. This coverage can also be waived in writing, but it is an important coverage that should not be waived.

Examples of Issues That Create Complicated Insurance Situations

There are many issues that can arise concerning insurance coverage, which include but are certainly not limited to the following examples:

  • Drivers who are responsible for a car crash might not have legally required liability insurance.
  • Drivers who are responsible for a car crash but do not have enough insurance.
  • Issues concerning medical payments from the medical payments provisions of insurance policies frequently arise.

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