Key Takeaways
- Colorado requires minimum auto liability limits of 25/50/15 ($25,000 per person/$50,000 per accident bodily injury/$15,000 property damage)
- Colorado is an "at-fault" state with modified comparative negligence (50% bar rule)
- UM/UIM coverage must be offered to all auto insurance purchasers
- Colorado requires electronic proof of insurance to be accepted by law enforcement
- PIP (Personal Injury Protection) is not mandatory but must be offered
Colorado Auto Insurance Requirements
Colorado has specific auto insurance requirements that producers must understand.
Mandatory Coverage
Colorado requires all registered vehicles to have liability insurance with minimum limits:
Minimum Liability Limits (25/50/15)
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $25,000 |
| Bodily Injury per Accident | $50,000 |
| Property Damage | $15,000 |
Memory Tip: Remember "25/50/15" for Colorado minimum limits.
Proof of Insurance
Colorado drivers must carry proof of insurance:
- Physical insurance card, OR
- Electronic proof on smartphone (Colorado accepts electronic proof)
- SR-22 required for certain violations
- Penalties for driving without insurance include fines and license suspension
Colorado's At-Fault System
Colorado uses a "modified comparative negligence" system with a 50% bar rule:
How It Works
- The driver at fault is responsible for damages
- Fault can be shared between drivers
- Recovery reduced by percentage of fault
- 50% Bar: If you are 50% or more at fault, you CANNOT recover damages
Modified Comparative Negligence Example
| Your Fault % | Can You Recover? |
|---|---|
| 0% | Yes - full damages |
| 25% | Yes - 75% of damages |
| 49% | Yes - 51% of damages |
| 50% | NO - barred from recovery |
| 75% | NO - barred from recovery |
Exam Tip: Colorado's 50% bar rule means at 50% or MORE fault, you cannot recover any damages. This is different from pure comparative negligence states.
Uninsured/Underinsured Motorist Coverage
Colorado requires insurers to offer UM/UIM coverage:
UM/UIM Requirements
| Requirement | Details |
|---|---|
| Must Offer | Yes, to every auto policyholder |
| Can Reject | Yes, in writing |
| Minimum Limits | Equal to liability limits |
| Stacking | May be available |
Coverage Purpose
- UM Coverage: Protects when at-fault driver has no insurance
- UIM Coverage: Protects when at-fault driver has insufficient coverage
- Covers bodily injury to policyholder and passengers
Personal Injury Protection (PIP)
Colorado requires insurers to offer PIP coverage:
PIP in Colorado
| Feature | Details |
|---|---|
| Mandatory | Must be offered, not required to purchase |
| Benefits | Medical expenses, lost wages |
| Limits | Varies by policy |
| Coordination | With health insurance |
PIP Rejection
- Policyholder can reject in writing
- Rejection must be knowing and voluntary
- Should document rejection
Medical Payments Coverage
- Optional coverage
- Pays medical expenses regardless of fault
- Lower limits than PIP typically
- No wage loss benefits
What are Colorado's minimum auto liability insurance limits?
Under Colorado's modified comparative negligence system, what happens if a driver is found 50% at fault?
Is UM/UIM coverage mandatory in Colorado?