Accident Auto Insurance: Colorado

All 50 states in the U.S. require some form of auto insurance (also called accident auto insurance, motor insurance, or vehicle insurance), but different states have different minimum requirements and different penalties for failing to provide the minimum auto insurance coverage. It is important that you know your state's auto insurance minimum requirements and your options above and beyond what the state requires.

Types of auto insurance coverage:

Liability
In the event of an auto accident, liability auto insurance pays for bodily injuries as well as property damages to the other (injured) party or parties. Included in bodily injuries are the medical expenses, compensation for pain and suffering, in addition to compensation for lost wages due to the accident. Included in property damages are both damages to the other vehicle in the auto accident as well as damages to any other property involved. Liability auto insurance also pays for court costs and defense attorney costs.
Collision
In the event of an auto accident (between your car and either another car or an object), collision auto insurance pays for damages to your vehicle caused by the incident.

Comprehensive
In an event other than an auto accident, such as flood, wind, fire, hail, theft, vandalism, comprehensive auto insurance pays for loss or damages to your insured vehicle.

Medical Coverage
In the event of an auto accident, regardless of who is at fault, medical coverage auto insurance pays for the medical expenses.
PIP (Personal Injury Protection)
In the event of an auto accident, regardless of who is at fault, PIP auto insurance pays for your (as the injured party) medical expenses incurred from the accident.

Uninsured Motorist
In the event of an auto accident with an uninsured motorist, uninsured motorist auto insurance pays for your insured car's damages from the accident.
Underinsured Motorist
In the event of an auto accident, underinsured motorist auto insurance pays for your insured car's damages when the other motorist has insufficient liability insurance to pay for the damages from the accident. Rental Reimbursement
In the event of an auto accident, rental reimbursement auto insurance pays for a rental car due to the damages of your insured car (usually with a daily price limit).

Colorado Law Minimum Requirements for Accident Auto Insurance
Liability Insurance: $25,000 for bodily injuries and/or death of one person caused by an auto accident; $50,000 for bodily injuries and/or death to all persons caused by an auto accident; $15,000 for property damages caused by an auto accident. Insurance policy must be obtained by a legitimate auto insurance provider recognized by Colorado.

Colorado's Proof of Auto Insurance
In order to register a vehicle in Colorado, you must have proof of liability insurance. You may use the issued insurance card, the actual insurance policy, or an official letter from your insurance company written on the company's letterhead. The confidential Colorado Motorist Insurance Identification Program (MIIP) requires the state's authorized insurance companies to give the state insurance policy information so that state knows who is properly insured and who is not.
Colorado Law Auto Insurance Penalties
The first offense of driving a motor vehicle without proper auto insurance carries a fine of no less than $500 and 4 points on your motor vehicle record (which will increase your subsequent insurance rates). The second offense results in a fine of $1,000 or more and a four month driver's license suspension. The third violation could result in approximately 40 hours of community service in addition to a $1,000 minimum fine and an eight month driver's license suspension.

Colorado Auto Insurance Exceptions
You can request a temporary (due yearly) auto insurance exemption from Colorado if you reside outside the state temporarily, in the military, or own a seasonal motor vehicle (such as a motor home, motorcycle, etc.).

As always it is important to shop around for auto insurance quotes, as rates can vary greatly between companies. Also, when you get auto insurance quotes, be sure to ask about special discounts which are often given based on age, marital status, location, etc.