Not all states require car insurance but they do require financial responsibility to operate a vehicle on the roadway. So while not all states require drivers to buy liability insurance to show financial responsibility, a majority of them do.
All 50 states have different requirements when it comes to auto insurance and the minimum insurance requirements. Almost every state requires you to have bodily injury liability insurance and every states has financial responsibility laws that require you be able to have sufficient assets to pay for any liability you cause in an incident.
The Colorado Division of Insurance (DOI) states that if you own an automobile in Colorado you are required to purchase auto insurance. By law, you are required to carry liability insurance to provide financial protection in the event you injure someone else or damage someone else’s property while operating your automobile.
The Colorado Revised Statute 42-4-1409 discusses the state financial responsibility / compulsory insurance law. This states that no owner of a motor vehicle required to be registered in this state shall operate the vehicle or permit it to be operated on the public highways of this state when the owner has failed to have a complying policy or certificate of self-insurance in full force and effect as required by law.
The Colorado driver’s manual notes that minimum insurance you must have is:
- $25,000 for bodily injury or death to one person in any one accident.
- $50,000 for bodily injury or death to two or more persons in any one accident.
- $15,000 property damage coverage.
Coverage above this minimum may be purchased, as can coverage to protect against uninsured/underinsured motorists, and physical damage.
Insurance companies that issue automobile liability insurance policies in Colorado are required to report new policies issued and canceled policies on a weekly basis before the seventh working day after the last day of the week reported. Transactions are submitted when:
- A liability insurance policy is issued or reinstated
- A liability insurance policy is canceled
- A vehicle is added to a policy
- A vehicle is removed from a policy
- When a Verification Acknowledgment is requested
So it is against the law in Colorado to drive your vehicle without insurance. If you are caught driving without insurance there are severe penalties.
A first offense for driving without insurance comes with a $500 minimum fine and 4 points being placed onto your CO motor vehicle record (MVR). A second is a minimum $1000 fine and a license suspension of 4 months. A third violation comes with penalties which can include a minimum fine of $1000, community service, and an 8 month license suspension.
If you have any questions about what car insurance coverages you must maintain in Colorado you may contact the Colorado Division of Insurance at 303-894-7499.
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