Colorado Car Insurance Requirements
Car insurance in the state of Colorado is not optional. If you own a vehicle you want to drive on public roads you must purchase at least a minimum liability insurance policy. Liability insurance protects other people from financial loss if your negligence or carelessness results in an accident that injures them or damages their property.
Colorado law requires every car insurance policy offer minimum coverages in the amounts of $25,000 per accident for bodily injury or death ($50,000 for multiple victims) and $15,000 for property damage claims. In addition, there is one other quirk Colorado drivers need to know.
That quirk comes by way of something known as “med pay” insurance. Short for “medical payments”, med pay is a supplemental insurance product that helps to defray your medical costs regardless of who is at fault in an accident. Beginning in 2009 insurance companies in Colorado were required to include med pay in every auto policy.
Drivers have the option of refusing med pay coverage when they purchase car insurance. And in fact, many drivers looking for the cheapest car insurance coverage they can find do just that. In order to opt out of med pay coverage you have to sign an insurance company affidavit attesting to that fact.
Maintaining Car Insurance in Colorado
In the Centennial State compulsory auto insurance extends to any motor vehicle that requires registration to legally operate. That means you would have to purchase liability insurance for boats, ATVs, snowmobiles, private planes, RVs, and so on. Your insurance must remain in force as long as you hold a valid registration.
In addition, the law requires Colorado drivers to carry proof of insurance in their vehicles of all times. Acceptable forms of proof include an insurance company ID card or a letter from your insurance company, written on official company letterhead, stating you have an insurance policy in force.
In Colorado police officers have real-time access to the state’s insurance database. Furthermore, Colorado utilizes an electronic reporting system which requires insurance companies to inform the state whenever an insurance policy is created, modified, or canceled.
If You’re Caught
The first time you’re caught in violation of the state’s compulsory insurance law you will be assessed a minimum $500 fine and four points will be added to your license. A second offense results in a $1,000 fine, additional points, and a mandatory four-month registration suspension. A third offense carries a $1,000 fine, and eight-month suspension, and a requirement for community service.
If you live in Colorado just buy a cheap car insurance policy. You can’t afford to be caught without one.