The Colorado Financial Responsibility Act requires every driver to carry liability insurance with minimum limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 for property damage, and to show proof of that coverage on demand. Driving without it is a class 1 misdemeanor traffic offense that carries a mandatory $500 fine and license suspension on a first conviction. Your policy also includes medical payments coverage and uninsured motorist coverage by default unless you rejected them in writing.
Minimum Liability Coverage
Every vehicle registered in Colorado needs a liability policy before it goes on a public road. The state’s minimum, commonly written as 25/50/15, means $25,000 for one person’s bodily injuries, $50,000 for all bodily injuries in a single crash, and $15,000 for property damage.1DORA – Division of Insurance. Auto Insurance These dollars pay what you owe the other party when you cause an accident. They do nothing for your own injuries or your own vehicle.
The 25/50/15 figures are a legal floor. A serious collision with surgery, rehabilitation, and lost wages can pass $50,000 quickly, and anything above your limit comes out of your assets. Many Colorado drivers carry 100/300/100 or higher for that reason.
Medical Payments Coverage You Already Have
Colorado auto policies must include $5,000 in medical payments coverage, usually called MedPay, unless you rejected it in writing.2Justia. Colorado Code 10-4-635 – Exceptions MedPay pays medical expenses for you and your passengers after a crash no matter who caused it, which makes it useful early on while a larger injury claim is still in motion.
If your insurer never offered MedPay or cannot produce a signed written rejection, your policy is presumed to include the $5,000 by default.2Justia. Colorado Code 10-4-635 – Exceptions Collecting MedPay does not stop you from pursuing the at-fault driver’s liability coverage separately.
Uninsured and Underinsured Motorist Coverage
Colorado policies must also include uninsured and underinsured motorist coverage (UM/UIM) unless you specifically rejected it in writing.3Justia. Colorado Code 10-4-609 – Insurance Protection Against Uninsured Motorists – Applicability This coverage pays for your injuries when the driver who hit you has no insurance or not enough. Plenty of Colorado drivers remain uninsured despite the legal requirement, which is why this coverage matters.
Before issuing or renewing a policy, your insurer must offer UM/UIM limits equal to your bodily injury liability limits.3Justia. Colorado Code 10-4-609 – Insurance Protection Against Uninsured Motorists – Applicability You can select lower limits, but the insurer cannot steer you toward lower coverage without first putting the matching option in front of you.
Proof of Insurance at the Roadside
You need to be able to show proof of insurance during any traffic stop. If you cannot, you may be served with an Affidavit and Notice of Suspension on the spot.4Colorado Department of Revenue. Auto Insurance A physical insurance card or a copy on your phone both work. Keep it where you can get to it.
If you were actually insured at the time but could not produce proof during the stop, you can still avoid conviction. Bring documentation showing your policy was in full force and effect to court; the clerk’s office can verify coverage through the state’s uninsured motorist identification database.5Justia. Colorado Code 42-4-1409 – Penalty
Penalties for Driving Without Insurance
Driving uninsured is a class 1 misdemeanor traffic offense, and the penalties climb with repeat violations.
First Offense
A first conviction carries a mandatory minimum $500 fine. The court can suspend up to half of that fine if you show proof you have since obtained proper coverage.5Justia. Colorado Code 42-4-1409 – Penalty Your license is suspended until you furnish proof of financial responsibility, meaning you have to get insured before driving again.6Justia. Colorado Code 42-2-127.7 – Authority to Suspend Drivers License There is no fixed minimum suspension period for a first offense; the suspension lasts as long as you remain uninsured. Four points are added to your record.
Second and Subsequent Offenses
A second conviction within five years raises the mandatory minimum fine to $1,000, and the court cannot suspend any part of that minimum.5Justia. Colorado Code 42-4-1409 – Penalty License suspension jumps to a minimum of four months for a second offense and eight months for a third or subsequent offense.4Colorado Department of Revenue. Auto Insurance The court can also order at least 40 hours of community service for any conviction.
Reinstating Your License
Getting your license back after an insurance-related suspension requires filing an application for reinstatement, paying a $95 fee, and providing proof of insurance.7Colorado Department of Revenue – Motor Vehicle. Reinstatement Frequently Asked Questions Depending on the circumstances, you may also need to file an SR-22 and keep it in place for three years.
SR-22 Filings
An SR-22 is not a separate policy. It is a certificate your insurer files with the Colorado DMV confirming you carry at least the minimum required liability coverage. Drivers who lose their license for certain violations, including driving without insurance and DUI, are often required to carry an SR-22 before reinstatement.8FindLaw. Colorado Code 42-7-406 – Proof Required Under Certain Conditions
The SR-22 must stay active for three years.4Colorado Department of Revenue. Auto Insurance Any gap in coverage during that period triggers notification to the DMV, which can prompt another suspension and restart the three-year clock.9Colorado Department of Revenue – Motor Vehicle. SR-22 and Insurance Information Premiums with an SR-22 are substantially higher because insurers treat these drivers as high-risk, and you can expect an administrative filing fee of roughly $25 to $50 on top of that.
Rideshare and Delivery Work
A personal auto policy generally will not satisfy the Act’s requirements while you are working for a rideshare company. Colorado sets up a tiered structure for transportation network company (TNC) drivers that shifts responsibility depending on the phase of the trip.
- App on, waiting for a ride request: the TNC or the driver must maintain at least $50,000 per person for bodily injury, $100,000 per accident, and $30,000 for property damage.10Justia. Colorado Code 40-10.1-604 – Registration
- Ride accepted through drop-off: the TNC must provide at least $1,000,000 in liability coverage per occurrence, plus uninsured motorist coverage of $200,000 per person and $400,000 per accident.10Justia. Colorado Code 40-10.1-604 – Registration
- App off: your personal auto policy applies as usual, with no business use.
Delivery drivers face a separate problem. Most personal auto policies exclude delivery work entirely, even with a business use endorsement. If you deliver food, packages, or other goods and cause a crash during a delivery, your personal insurer can deny the claim. A commercial auto policy written for delivery exposure is the standard fix.
Self-Insurance Is Not an Option for Individuals
Colorado allows self-insurance as an alternative to a traditional policy, but only for owners who have more than 25 motor vehicles registered in their name.11Justia. Colorado Code 10-4-624 – Self-Insurers Qualifying entities receive a certificate of self-insurance from the state insurance commissioner after showing the financial capacity to cover claims. Individual drivers with one or two cars do not qualify.
Security Deposits After an At-Fault Crash
Drivers named in an accident report may be required to file proof of financial responsibility and post a security deposit with the state. The deposit covers potential judgments and cannot exceed $35,000.12Justia. Colorado Code 42-7-301 – Security and Proof of Financial Responsibility It can be satisfied through an insurance policy, a surety bond, or a qualifying savings account or certificate of deposit. If you were insured at the time of the crash and your policy covers the incident, your insurer handles this for you. The requirement mostly hits uninsured drivers who cause an accident and suddenly face both the other party’s damages and the state’s demand for proof they can pay.