Under Colorado law, motorists are required to carry a minimum of $25,000 per person and $50,000 per accident in Bodily Injury Liability (BIL) insurance, as well as at least $15,000 in Property Damage Liability (PDL) insurance. BIL pays the medical and accident-related expenses of the other driver, pedestrian or cyclist when the insured is at fault for the collision. PDL covers the repair or replacement of the other driver’s vehicle. Neither BIL nor PDL applies to the insured’s medical or property damage expenses. While these amounts are the required minimum, it is wise to purchase additional coverage in case of a serious accident to avoid putting personal assets at risk.
Colorado does not require drivers to buy uninsured or underinsured motorist coverage, but obtaining such insurance is a good idea in the event an accident occurs with an uninsured or underinsured driver.
While not required, Colorado allows drivers the option of purchasing $5,000 in Medical Payments coverage, which provides prompt compensation for medical bills relating to the auto accident no matter who was at fault. If the driver does not opt-out of Medical Payments coverage, it is automatically added to the auto insurance policy, and the premium is somewhat higher.
While there is no state requirement for collision or comprehensive coverage, lenders will almost certainly mandate such insurance for leased or financed vehicles.
Anyone caught driving without auto insurance in Colorado faces a $500 fine for the first offense and a $1,000 fine for the second offense, along with four points on their license. For a first offense, the license is suspended until the driver can prove to the Colorado Division of Motor Vehicles that they are insured. A second offense involves a four-month license suspension, and subsequent offenses are much harsher. A court may add as much as 40 hours of community service to each offense.
