Colorado insurance laws require its drivers and registered vehicle owners to maintain auto insurance in order to lawfully operate on its roadways. To comply with these regulations, Colorado drivers must carry bodily injury and property damage limits of at least $25,000 per person, $50,000 per accident with $15,000 in property damage. Drivers that elect combined single limits of liability must carry at least $65,000 of coverage.
Uninsured and Underinsured Motorist
Under Colorado law, auto insurance carriers are required to offer drivers uninsured and underinsured motorist coverages. However, Colorado drivers are not required to accept the coverages. Uninsured and underinsured motorist coverages protect policyholders from injuries that are caused by uninsured drivers, as well as those who do not have enough insurance. Though these coverages are not required by law, Colorado policyholders can only reject these coverages in writing.
Med-Pay
Like uninsured and underinsured motorist coverage, insurance carriers must offer Colorado policyholders medical payment coverage, or med-pay. Medical payment coverage reimburses the policyholder and passengers for medical expenses incurred during an accident. The coverage is paid regardless of fault, up to the selected coverage limits. Medical payment coverage can be rejected, but the rejection must be in writing.
Noncompliance
Colorado drivers who fail to comply with the state's auto insurance laws will have their driving privileges suspended or revoked. To restore privileges, drivers must complete an application for reinstatement and submit it to the Colorado Division of Motor Vehicles, along with a $95.00 reinstatement fee. Noncompliant drivers must also file an SR22 with the division. The certificate must be issued by a state-authorized auto insurance carrier. Some drivers may be required to take all parts of the driving exam in order to restore their driving privileges.
Considerations
Insure.com's March 2011 insurance analysis reported Colorado as the 26th most expensive state for buying auto insurance. In efforts to reduce auto insurance costs, legislation requires Colorado auto insurance carriers to pay one dollar for every vehicle it insures. Colorado insurance carriers have the option of passing that fee onto its policyholders.
Tags: auto insurance, insurance carriers, Colorado drivers, drivers must, payment coverage, auto insurance carriers, Colorado auto
