Rachel Bodine

Insurance Feature Writer

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Insurance Feature Writer

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

UPDATED: Jun 17, 2022

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Residents of the mile-high city prefer to drive alone. According to DataUSA, 74.9 percent of drivers in Denver commute alone, followed by 8.56 percent who work from home, and 8.55 percent who carpool.

While rates are regulated by “open competition,” auto insurance rate increases and decreases will generally need to be approved by the State’s Insurance Commissioner.

Don’t be anxious. We will provide you with the most meaningful data you’ll need when deciding on the best car insurance company for you. The public reputation and perception of any company from which you’re considering purchasing car insurance should be a major factor in your deliberations.

The Insurance Commissioner must ensure that the individual will be able to pay the minimum coverages required by the state. For more information on self‑insurance, contact the state’s Division of Insurance within the Department of Regulatory Agencies (DORA).

  • $25,000 for bodily injury or death of one person in an accident caused by the owner of the insured vehicle

The state of Colorado requires all motorists to carry the minimum liability limits of 25/50/15 to satisfy “basic coverage.” This means that car owners must carry the following Colorado car insurance requirements, with minimum levels of liability insurance:

Colorado
Colorado Statistic Summary
Road Miles 88,740
Registered Vehicles 4,632,430
State Population 5,607,154
Percentage of
Uninsured Motorists
13.3
Driving Deaths Speeding: 230 Drunk Driving: 177
Average Premiums Annually
Liability: $520.04 Collision: $287 Comprehensive: $174.61
Cheapest Provider: USAA

Knowing the basics of Colorado car insurance laws is important when you’re ready to get out on the road. We’ll look at minimum requirements, rates, ways to lower your rates, factors that affect the price of car insurance, and more. If you’re looking to lower your rates, one option is taking an AARP.org driving 101 course. This is especially important considering the steeply rising cost of auto insurance in Colorado.

Another great way to keep your rates as low as possible, even in the midst of rising costs statewide, is to look at car insurance in Colorado and conduct a comparison of car insurance quotes from multiple companies. Then you can choose the one with the best rates for you.

Looking for affordable Colorado car insurance? Enter your ZIP code to start your Colorado car insurance quotes comparison with our FREE tool.

Table of Contents

What Are The Average Rates and Coverage on Colorado Car Insurance?

Car insurance is a necessity, but knowing how and where to begin to choose the proper coverage from the best car insurance companies can be burdensome.

The good news is we have made it our business to ease your burden when it comes to the need-to-knows about car insurance in your state. We will provide you with statistical and anecdotal medicine to alleviate any anxiety you may be feeling over the rising costs of auto insurance premiums.

Take a look at this chart to see the average cost of auto insurance in Colorado, as well as car insurance rates by state across the country.

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We’ll help you discover what the law requires, what you may want or need, and where you can get it at the best rates possible for your circumstance, as well as average car insurance per month in Colorado and other useful information.

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How Much Car Insurance Coverage Is Required in Colorado?

Colorado is a “fault” state. If you are found at-fault in an accident, you are responsible to pay for all the resulting damages. Minimum coverage is meant to cover your liability if you’re at fault. So it covers the other party’s property damage and bodily injury liability.

The state of Colorado requires all motorists to carry the minimum liability limits of 25/50/15 to satisfy “basic coverage.” This means that car owners must carry the following Colorado car insurance requirements, with minimum levels of liability insurance:

  • $25,000 for bodily injury or death of one person in an accident caused by the owner of the insured vehicle
  • $50,000 for total bodily injury or death in an accident caused by the owner of the insured vehicle
  • $15,000 for property damage per accident caused by the owner of the insured vehicle

Take a look at this table for specific minimum coverage requirements in Colorado.

Colorado Minimum Coverage Requirements
Colorado Minimum Coverage RequirementsMinimum Policy Limits
Bodily Injury Liability$25,000 per person
$50,000 per accident
Property Damage Liability$15,000 per accident
Uninsured/Underinsured Motorist Coverage*$25,000 per person
$50,000 per accident
Medical Payments (MedPay)*$5000

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*May be waived if rejected. UUM must be rejected in writing. MedPay may be rejected in writing or in the same way you buy insurance.If uninsured/underinsured motorist coverage is not rejected, it will automatically be applied to a basic policy. Take a look at this video to learn a little more about uninsured/underinsured motorist coverage.

 

Take a look at this chart to see mandatory minimum coverage requirements for every state in the country.

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Any motorist or business with 25 or more vehicles registered in the state has the option of self-insurance.

Any individual who has over 25 vehicles registered to his or her name may qualify as a self‑insurer by applying for a certificate of self‑insurance from the state Insurance Commissioner.

The Insurance Commissioner must ensure that the individual will be able to pay the minimum coverages required by the state. For more information on self‑insurance, contact the state’s Division of Insurance within the Department of Regulatory Agencies (DORA).

How Much Coverage Is Enough with Insurance Providers in Colorado?

Will opting for just the basic Colorado car insurance minimums meet all your insurance needs? That all depends on whether you have substantial assets (present or future) to protect. Are you willing to open yourself up to potential litigation in the event of an accident?

If not, consider increasing your liability limits. The experts at the Wall Street Journal advise limits of 100/300/50, offering the following recommendation:

Make sure you’re covered for an amount equal to the total value of your assets (add up the dollar values of your house, your car, savings, and investments).

Next, we will glance at what the average driver in Colorado pays for car insurance. The exact amount you will pay will probably be slightly higher or lower than these figures, but this data will give you a healthy frame of reference. With telematics programs and other discounts available that weren’t before, even the initial rate you get may not be completely accurate.

What Percentage of Income Are Car Insurance Rates in Colorado?

Arthur Godfrey, the late, great radio and television broadcaster and entertainer once quipped, “I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.”

This humorous quote underlies the principle of Disposable Personal Income (DPI), which is the amount of money you retain after paying the government its cut by way of taxes. Take a look at this table, where we compare average monthly Colorado car insurance rates to average DPI in the state.

Average Percentage of Income Spent on Auto Insurance in Colorado
Annual Full Coverage
Average Rate
Monthly Full Coverage
Average Rate
Annual Per Capita