Auto Insurance

Liability insurance is a type of insurance policy that protects the policyholder from financial loss resulting from legal claims and lawsuits filed by a third party for injuries or property damage that the policyholder caused.

Colorado law requires you to have liability coverage on your automobile. This coverage pays bodily injury damages to another person and property damage to another’s property that are the result of an accident in which you are found to be at fault.

Coverage is not provided for any automobile owned by you or a resident relative that is not insured for liability under your policy. There is no coverage for intentional acts.

The minimum limit of liability coverage that is required is $25,000 per person for bodily injury, $50,000 per accident and $15,000 for property damage to another. 

Uninsured/underinsured motorist (UM/UIM) coverage is optional in Colorado.  This coverage pays for the insured's bodily injury losses caused by a hit‑and‑run driver, a driver with no automobile insurance, or a driver of an underinsured vehicle. 

Uninsured and underinsured motorist coverage will be included in your policy unless you reject it in writing.

Uninsured Motorist coverage pays for your bodily injury damages that are the result of a not at fault accident with an uninsured or hit and run driver.

Underinsured Motorist coverage pays for your bodily injury damages that are the result of a not at fault accident with an underinsured driver. A motorist is considered underinsured if his or her liability coverage is not enough to pay the full amount you are legally allowed to recover as damages. 

An estimated 15-20% of drivers are uninsured. 

Physical damage coverage is a type of insurance that pays for repairs or replacement of your vehicle due to damage from collisions or other non-collision incidents, such as theft, fire, or vandalism.

You must be offered collision coverage with deductibles of $100 or $250. You may select higher deductibles.

Collision coverage pays for damage to your own automobile when it collides with another automobile or object. It also pays if your automobile overturns.
Comprehensive coverage pays for damage to your automobile from causes such as fire, theft, vandalism, hail, and falling objects.

Collision and comprehensive coverage is typically written with a deductible. A deductible is that part of a loss you will pay. 
A lender will likely require you to purchase both collision and comprehensive coverage.

Unless you have purchased the appropriate coverage your insurance does not apply to losses that occur while your automobile is rented or leased to others. 

Medical payments coverage pays for you and your passengers reasonable health care expenses incurred for bodily injury caused by an automobile accident, regardless of fault.

Medical payments coverage of $5,000 will be included in your policy unless you reject it. You may reject the coverage in writing or in the same method in which you applied for the policy.

Medical payments coverage is not required to be offered on motorcycles, low-powered scooters, off-road vehicles or other miscellaneous vehicles.

If you are in an automobile accident, your medical payments coverage will pay before your health insurance coverage.

Medical payments coverage will apply toward health insurance coverage coinsurance or deductible amounts.

Uninsured Motorist Property Damage Coverage pays for damages to your automobile caused by an at-fault owner of an uninsured automobile.

This is an optional coverage you can purchase if you do not have collision coverage on your automobile.

This coverage will not apply if the automobiles do not make physical contact.

This coverage only pays the actual cash value of your automobile or cost of repair or replacement, whichever is less.
 

Auto insurance is regulated by the states.

The Division cannot endorse or recommend any particular company. We would encourage you to review the Division's Complaint Ratio/Index page and/or the Premium Comparison Tool.

Complaint Ratio/Index

Premium Comparison Tool

The Division does not maintain a database of this information.  You will need to request this information directly from the entity or individual. 

If you file a complaint with the Division, the Division will ensure companies investigate claims thoroughly. We will contact the company and ensure they are complying with Colorado insurance law.  The Division does not determine coverage owed or make liability decisions in claims - this is determined by the insurance company.  However, if you have concerns that the company did not consider available information in its claim review, we recommend you file a formal complaint with the Division by clicking here. 

Ultimately, liability and amounts owed are determined by the insurance company.  While we cannot negotiate a settlement on your behalf, the Division can review the company’s claim handling to ensure they have considered all available information, completed a reasonable investigation, and complied with Colorado insurance laws. If you would like the Division to review the company’s handling of the claim, you may file a formal complaint by clicking here.

There are no timeframes included in our laws; however, the Division can address unreasonable delays directly with the company.  Please keep in mind that weekends, holidays and other circumstances may impact how long it takes the company to respond.  

At this time, there are no Colorado insurance laws that address diminished value.  Although there may be case law related to diminished value, the Division's regulatory authority is based on the Colorado Revised Statutes. 

No, you have the right to choose whichever repair shop you wish to use. However, the company can provide information related to preferred providers and they can guarantee the work performed by their preferred providers.  See Section 10-4-120, Colorado Revised Statutes. 

The company will pay reasonable market costs; however, they may not pay additional fees or excessive costs charged by the repair facility.  See Section 10-4-120, C.R.S. Unreasonable costs, such as excessive storage fees or labor rates, etc. may not be paid in full. 

Insurance companies submit filings using their own individual loss and expense experience.  There is no minimum or maximum amount a company can file. The Division of Insurance does not set rates in Colorado.  However, Division staff reviews rate filings to ensure the company can adequately support the requested rates.  

-Change of address;
-Adding or changing an automobile insured; 
-Addition of a driver;
-Change in use of your automobile;
-Annual mileage driven;
-Change in credit-based insurance score 
-Moving violations and/or at-fault accidents
-A general rate increase. This is caused by the insurance company having to pay higher than expected claims for a large group of policyholders and is not a result of a single driver. A general rate increase applies to everyone in the group, not just those who had a loss.

• Economic and Market Factors
  • Economic inflation and rising repair costs:  Inflation affects the overall economy, raising the costs of goods and services related to insurance. 
  • In addition to inflation, technology makes cars more complex to repair, which leads to higher material and repair costs.
  • For cars insured with comprehensive coverage, climate related losses such as hail, wind, and flood will drive up premiums.
• Societal and Behavioral Factors
  • Insurance Fraud: The prevalence of fraudulent claims across the industry contributes to higher premiums for all policyholders as insurers seek to recoup losses from these deceptive practices.
  • Distracted Driving: leads to more accidents, which leads to higher claim costs and increased premiums.
• Uninsured drivers
  • Drivers without insurance that are involved in accidents with people who are insured drive up costs, as the carriers and victims of these accidents are typically left to foot the bill from the accident.
• Policyholder-Specific Factors
  • Personal Claims History and Policy Changes: Individual claims history and adjustments in policy coverage can lead to higher premiums.