Understanding Auto Insurance Coverage in Colorado

Auto insurance in Colorado is the financial lifeline that helps car crash victims rebuild their lives. Under the Colorado auto insurance laws, every driver must carry at least:

• $25,000 for each person’s bodily injury
• $50,000 per crash
• $15,000 for property damage 

While those minimums keep you street-legal, they rarely cover the real‐world cost of injuries, hospital stays, lost wages, and major vehicle repairs. 

That gap in protection explains why so many drivers explore optional car insurance coverage and, when injuries occur, turn to seasoned Colorado auto accident attorneys, The Morgan Law Group, who pursue insurance claims or, when warranted, full-scale car accident cases for injured clients.

Colorado’s Mandatory Liability Insurance

Colorado operates under a fault-based (tort) system, so the at-fault driver’s insurer pays for the other party’s losses. 

State law sets the mandatory liability floor at 25/50/15, meaning:

• Bodily Injury Liability: Up to $25,000 per person and $50,000 per accident
• Property Damage Liability: Up to $15,000 per accident

Only liability coverage is required; it protects third parties, not the at-fault driver. Any bills beyond these limits become the at-fault party’s personal responsibility, one reason many drivers buy higher BI limits.

The average cost of a 30-day hospital stay in the U.S. is between $6,000 and $12,000 – not counting follow-up therapy or wage loss. A single overnight ICU visit can wipe out the entire $25,000 BI auto insurance limit. When damages exceed the at-fault driver’s limits, injured people must either collect from their own optional coverage or sue the driver personally, exposing everyone to costly litigation.

Optional Auto Insurance Coverage Drivers Should Consider

To close the gaps after Colorado’s mandatory 25/50/15 liability limitation, smart motorists look beyond the minimum and add optional auto insurance coverage that protects both their finances.

• Uninsured/Underinsured Motorist (UM/UIM): Your medical bills, property damage, and lost wages when an at-fault driver has no insurance or too little. With 17.5% of drivers without car insurance in 2023, Colorado ranked in the top 10  with uninsured drivers; UM/UIM is offered in limits equal to your BI unless you reject it in writing.
• Medical Payments (MedPay): Up-front medical costs for you and passengers, regardless of fault. Insurers must offer at least $5,000 in MedPay; you can decline only by a signed waiver. It fills health-insurance deductibles and pays immediately, without waiting for fault findings.
• Collision Coverage: Repairs (or actual-cash-value payout) for your car after a crash with another vehicle or object. Lenders require it on financed cars; smart for vehicles worth more than $4,000.
• Comprehensive Coverage: Non-collision damage – hail, wildfire, theft, vandalism, wildlife hits. Colorado ranks among the top states for hail claims; comprehensive coverage keeps those repairs off your expenses.
• Loan/Lease Payoff: The balance between your loan and the car’s depreciated value if it is totaled. Crucial for new cars that lose up to 20 % in value the moment they leave the lot.
• Rental Reimbursement & Towing: Daily rental fees and roadside assistance. Helpful in a state where many households operate with one primary vehicle.

Choose the mix that shields your budget as well as your vehicle. Reviewing your policy now, and upgrading where needed, can mean the difference between financial stability and hardship when the unexpected happens.

How Colorado’s Fault System Leads to a Personal Injury Claim

Because Colorado is an at-fault state, accident victims typically file a third-party claim against the other driver’s insurer. If that insurer drags its feet or disputes liability, you may first rely on your own collision, MedPay, or UM/UIM and then let your carrier pursue subrogation. 

Colorado also follows modified comparative negligence: if you are 50 % or more at fault, you cannot collect from the other party; below 50 %, your award is reduced by your percentage of blame.

How to File an Auto Insurance Claim in Colorado

The steps you take after a car accident in Colorado determine how smoothly your auto insurance claim moves forward.

Here’s how you approach a car insurance claim in Colorado:

• Report the crash immediately to police and obtain the official report (officers must file within five days).

• Notify your insurer “as soon as practicable.” Most carriers require notice within days; late reporting can void coverage.

• Document everything: photos, witness contacts, medical records, repair estimates, etc.

• Understand the deadline. You have 3 years from the accident date to file a car accident lawsuit.

• Beware of early recorded statements and lowball offers; consult auto accident attorneys in Colorado before signing a release.

When questions or conflicts arise, consulting experienced auto accident attorneys in Colorado can safeguard your rights and help you secure every dollar you deserve.

How Accident Attorneys in Colorado Strengthen Your Case

Experienced Colorado auto accident attorneys level the playing field by:

• Calculating the true value of your medical bills, future care, and diminished earning capacity.
• Leveraging expert crash reconstruction to counter insurer blame-shifting.
• Triggering all available coverage layers (BI, UM/UIM, MedPay, umbrella) so no dollar is left on the table.
• Negotiating, or if necessary, litigating, to secure fair pain-and-suffering multipliers. 
• Preserving evidence and claim-filing deadlines while you focus on recovery. 

To know about our firm’s successful cases, take a moment to review our past case results and testimonials.

Do You Have Enough Auto Insurance Coverage in Colorado?

Even the most cautious driver can find themselves facing six-figure medical bills after a single car crash. If you are relying on bare-bones 25/50/15 liability, or if an uninsured driver just totaled your vehicle, now is the time to reassess your auto insurance coverage. 

The Morgan Law Group stands ready to analyze your auto insurance policy, file strong insurance claims – and when insurers refuse to pay, fight for you in court. Talk with our accident attorneys in Colorado to receive personalized legal representation, because peace of mind on Colorado’s roads begins with the right car insurance coverage and the right legal team.

Call us today or complete our contact form to schedule your free consultation.