Colorado law mandates that all residents must carry a minimum of liability auto insurance to operate a vehicle on Colorado roadways. Beginning January 1st, 2009, Colorado requires insurance companies to include medical payment coverage on all auto insurance policies. This plan pays $5,000 for medical costs for the insured driver carrying the medical payment coverage regardless of which driver is at fault. Injured passengers riding with the insured motorist will also be able to take advantage of the $5,000 benefit. While some insurance plans take time to pay costs accrued as a result of car accident injuries, the medical payment plan is designed to pay out immediately. Although this plan is considered necessary and included unless otherwise specified, consumers may only opt out through written consent.

Colorado’s Liability Minimums
Liability coverage in Colorado is $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $15,000 per accident for property damage. This plan will provide funds to the victim of a car accident for medical expenses and property damage costs up to the minimum requirement unless a greater sum is specified. A greater sum should be declared for drivers wanting enhanced protection. Increasing coverage helps to keep a driver’s assets safe when costs to the victim exceed the minimum insurance amount.

Bodily Injury Plans
The bodily injury section of an insurance plan should be carefully considered when choosing a minimum coverage amount. Because medical costs and hospital stays can accumulate large bills, insured individuals want to be sure they have enough insurance to make these payments to the victim. If a driver does not have enough insurance, he or she may be responsible for the additional fees that will need to be paid out of pocket.

Colorado has a $25,000/$50,000 liability policy where each injured individual can receive no more than $25,000 for medical and pain and suffering expenses. If more than one person is injured, the group will be provided with $50,000 without exceeding $25,000 per person. This will be quoted as a $25,000/$50,000 bodily injury plan on the policy.

Property Damage Plans
Colorado enforces a $15,000 liability minimum for property damage. This amount is used to cover property damage costs accrued by the collision victim. In the event that the negligent driver damages public property, he or she will be responsible for those costs as well. In Colorado, $15,000 can be paid out to the other driver without limitation to the number of parties involved. The only damage that liability insurance will not cover is the repair or replacement costs of the faulty driver’s vehicle.

Optional Increases in Property Damage
Collision and comprehension coverage should be considered by all drivers. This policy enhances the liability minimum requirement by providing protection to the insured individual’s motor vehicle even if he or she is at fault. This plan will be listed as the collision coverage. If a driver has an older vehicle worth $2,000 or less, they should opt out of collision coverage because they would pay more for the policy than they would receive in a claim. Comprehensive coverage will pay repair costs in the event that a car becomes damaged due to falling objects, environmental factors and vandalism.

Adding Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage is not mandatory by Colorado law but insurance representatives are required to offer it. This coverage protects drivers from other drivers who are operating a vehicle without adequate coverage. If a driver is only carrying liability insurance and is hit by an individual without any insurance, the expense to repair the negligent driver’s car, even though he or she carries liability insurance, will be at the expense of the faulty driver. Individuals who reject this coverage must do so in writing so that the insurance company can keep it for their records.

Penalties
If drivers in Colorado are caught without car insurance, they will face heavy penalties. The first offense is a $500 fine along with four points added to the individual’s driving record. If a driver is found to be operating a motor vehicle for a second time without proper insurance, he or she will pay a $1,000 fee and will have his or her driver’s license suspended for four months. The third offense is especially severe with another $1,000 fine, community service and a license suspension up to eight months.