If you own a vehicle or plan to buy a car, you should know that auto insurance in Colorado is required for all drivers. The requirements are enforced by the Division of Insurance in Colorado. At one time, Colorado was a no-fault state, but that designation changed in 2003.
Today, fault must be determined in a car accident before it can be decided which party is responsible and which car insurance company must pay the claim. Every driver must carry minimum auto coverage in Colorado Springs and throughout the state.
Liability Coverage Requirements
All drivers must have liability coverage, which means the insurance provider pays out if you are at fault in an accident with another person. Under this coverage, the provider must pay out for repairs to the other person’s property and medical costs for any injuries.
The minimum amount of coverage drivers in Colorado must have include the following amounts:
- $25,000 per person for injury
- $50,000 per accident for injury regardless of number of people involved
- $15,000 per accident for damage to property
You can have more coverage than this, but you cannot carry less if you are a resident of Colorado.
Understanding Liability Coverage
As you can see with the minimum amounts, you are covered for two separate issues in an accident if you have liability insurance. First, you are liable for any injury that results from an accident where you are responsible. Your coverage in this area has two limits: by person and by incident.
If one person is injured, your insurance provider would pay up to the amount of coverage you have for their medical costs. In this case, it would be $25,000. However, the coverage has limits per accident with the minimum set at $50,000. So, if you were at fault in an accident involving three people, you would be liable up to that amount in total rather than $25,000 per person.
The second aspect of the liability coverage is the damage to any property. It may include the other party’s car or even a fence or other structure. As you can see, $15,000 isn’t a lot if multiple vehicles are involved.
Considering the Amount of Coverage You Need
You must carry the minimum amount of liability coverage required by law. However, that doesn’t mean you can’t have more coverage. You should understand that you are still responsible for the expenses incurred from an accident that is your fault. You may have to pay out of pocket if costs are above the amount of insurance you have.
Many people make the mistake of only thinking about the requirements of state law, but you should also consider how an accident would impact your life and your financial situation if you had to come up with extra money in a lawsuit.
It’s important to know the requirements for liability coverage in Colorado, but you should also consider how much you need to carry to protect yourself and your assets.