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The Mandatory Amounts of Automobile Insurance Required by Colorado Law

By Burg Simpson
April 10, 2022
6 min read
blue car near car insurance documents

Automobile Insurance Requirements

Colorado law dictates the type and amount of car insurance every driver must carry. But Colorado’s minimum insurance requirements should not be the only criteria for determining how much coverage you choose. If you are involved in a collision, or if your vehicle is damaged because of theft, vandalism, fire, or a natural disaster, the costs to replace or repair your vehicle could be significant. Protect yourself, your family, and your assets by having adequate coverage to ensure that most of those costs will be paid by your insurance company.

Make sure you have the proper levels of automobile insurance coverage by meeting with your insurance agent every year to review your current policy. When you speak with your insurance representative, ask them about the different kinds of coverage and let them know if your circumstances have changed. Working together, you should be able to jointly decide on the levels that will afford you the protection you need.

Types of Automobile Insurance Coverage:

Liability Insurance

Colorado law requires automobile owners to carry a minimum amount of liability insurance. When a motorist causes a crash, liability insurance covers bodily injury to other parties and property damage to the other party’s vehicle or property.

Bodily injury liability insurance coverage will cover the policyholder if they cause a collision in which another party is injured or killed. Colorado law requires limits of at least $25,000 per person and $50,000 per accident for bodily injury.

Property damage liability coverage covers the policyholder if they damage another party’s property. Colorado law requires a limit of at least $15,000 per occurrence.

Uninsured/Underinsured Motorist Insurance

Colorado drivers are encouraged to purchase Uninsured/Underinsured motorist (UM/UIM) insurance to protect themselves in the event of a collision with a driver with no insurance or inadequate insurance. This additional kind of coverage is very important because it will pay for the value of your own injuries and damages when the policyholder is involved in a crash with an at-fault driver who does not have any insurance or sufficient insurance to pay for your injuries and damages. Most auto insurance companies encourage policyholders to choose to carry UM/UIM insurance coverage because it can offer an additional level of protection. This kind of insurance can help cover economic and non-economic losses in the event of a collision with a negligent driver who is uninsured or underinsured.

Comprehensive and Collision Insurance

Comprehensive insurance coverage protects the policyholder against damage to their own vehicles. These damages include not only damage caused by another vehicle, but also theft and damage from vandalism, fire, encounters with wildlife, falling objects, or natural disasters.

The collision component of this insurance coverage pays for damages to the vehicle sustained during a collision or a rollover. Collision coverage also covers damage if the driver runs into an object, such as a retaining wall, stop sign, or fire hydrant. Comprehensive and collision insurance is not required by Colorado law but is often required when financing a vehicle.

Medical Payments Insurance

Medical payments coverage is used as a supplement to your health insurance. This additional kind of coverage may help pay for some of the medical expenses associated with your incident. Unless the policyholder declines the coverage in writing, this coverage and premium will automatically be added to the insurance policy.

If You are Considering Increasing Your Levels of Coverage

Colorado law mandates that auto insurance policies provide the following minimum amounts of coverage, but insurance companies and financial advisors often encourage their clients to increase those amounts. The Colorado minimums include:

  • $25,000 for bodily injury, or death, to any one person in an accident.
  • $50,000 for bodily injury or death to all persons in any one accident; and
  • $15,000 for property damage in any one accident.

Many people believe the minimum requirements for auto insurance are too low and often recommend that policyholder purchase bodily injury liability coverage and uninsured/underinsured motorist coverage with limits of at least $100,000 per person and $300,000 per occurrence.

Obtaining Additional Coverage

If it is within your means to purchase a higher level of auto insurance, consider carrying more than the mandatory minimum requirements. Insurance protects you and covers your costs when unfortunate events turn your life upside down. You may also want to consider purchasing umbrella liability coverage, which offers even more financial security in the event you cause an accident. Talk to your insurance agent every year to review your policy and determine the amount of coverage you need for yourself and each member of your family.

Call Our Personal Injury Lawyers at Burg Simpson for Help Now

Dealing with insurance companies can be frustrating, and handling insurance claims can be complicated. If you have been injured in a crash that was not your fault, contact us at Burg Simpson and talk to a Denver injury lawyer as soon as possible. Our personal injury team will help protect your rights and fight for the compensation you deserve. Contact us today at 303-792-5595 or fill out our Free Case Evaluation form now.

About Burg Simpson Eldredge Hersh & Jardine

The award-winning trial lawyers at Burg Simpson never hesitate when fighting for our client’s rights and consistently face and defeat formidable adversaries at trial. Burg Simpson has secured more than $2.7 billion in verdicts, settlements, and judgments in practice areas spanning catastrophic personal injury, mass tort and class actions regarding gas explosions, dangerous pharmaceutical drugs and devices, medical malpractice, complex commercial and business litigation, construction defects, and workers’ compensation.

The firm was founded in 1976 by Michael Burg. Mr. Burg is an inductee into the Trial Lawyer Hall of Fame and a recipient of the Clarence Darrow Award. Mr. Burg has also been consistently recognized by his peers as a Best Lawyer in America® and a Colorado Super Lawyer®. Burg Simpson Eldredge Hersh & Jardine is based in Colorado and has offices in Arizona, Florida, Nevada, New Mexico, Ohio, California, and Wyoming.

Call Burg Simpson for Help Now

If you need assistance with a complex legal matter, contact the trial attorneys at Burg Simpson for help now at 888 895 2080, or access our free case evaluation at


Colorado Auto Insurance Requirements (

Mandatory Automobile Insurance in Colorado | Colorado General Assembly



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