Colorado Auto Insurance Laws
Auto Insurance Laws and Trends in CO
Liability insurance, at minimum levels, is mandatory in Colorado. It is recommended that motorists increase these limits as high as possible as the cost of accidents and medical treatment can be extraordinary and the minimum amounts may not be sufficient to cover expenses.
Colorado auto insurance regulations
In cases where a driver carries inadequate insurance or no insurance at all, the injured parties may be responsible for all expenses out of pocket. This is why it is recommended that each driver in Colorado purchases under and uninsured motorist coverage. This will cover the cost between the insured's liability and the liability carried by the at fault party. Under and uninsured motorist insurance covers the policy holder, other drivers on the policy, and passengers. If caught and charged with not having auto insurance the driver faces a maximum fine (for the first offense) of $500 plus four points added to the driver's license.
On January 1, 2009 Colorado added another mandatory auto insurance coverage called "med-pay." This covers a minimum amount of $5,000 (policy owners can choose higher amounts) to use towards emergency medical services such as ambulance costs, physicians, tests, diagnostics, etc. It is designed to help the injured party to concentrate on their recovery rather than worrying about immediate medical expenses. Although this coverage is deemed to be mandatory, if a policy owner absolutely doesn't wish to have this coverage, he or she can opt out in writing.
Colorado auto insurance premiums
Colorado enjoys one of the lowest auto insurance premiums in the country. They are well below the national average; however, the rates seem to be rising slightly. This may be because of the harsh weather conditions that sometimes occur in the state, or the fact that more drivers are being involved in accidents cause by distractions such as cell phones, satellite radios, or portable music devices.