No one ever imagines being involved in a car accident. Yet, every driver will, at some point in their lifetime, be the victim of a car accident. When you’re not at fault, you expect that the driver who was responsible for the accident will also pay for your injuries and damages to your vehicle. But what if the other driver was uninsured? What if they don’t carry enough car insurance to cover your expenses? Will your insurance plan pay? Here’s what you need to know about Colorado car insurance law:
What is the Minimum Amount of Car Insurance Required in Colorado?
In the state of Colorado, car drivers are required to carry liability insurance. The minimum requirements for liability insurance are as follows:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $15,000 per accident per property damage.
While these limits may protect you after a mild car accident or fender bender, they won’t be nearly enough if you are injured in a catastrophic car accident. A serious car accident can result in hundreds of thousands of dollars in expenses and lost wages. Without the proper insurance coverage, you could find yourself in serious financial difficulty.
Liability Car Insurance: What Does It Cover?
It is important to know that liability coverage covers people you hit, but won’t help you if you are injured. This is where Personal Injury Protection (PIP) coverage comes into play. PIP coverage will help pay for you and your passengers’ medical expenses after an accident. It is important to purchase this type of insurance as well.
Insurance experts recommend that drivers purchase additional liability coverage, as well as optional car insurance coverage, such as:
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- Collision coverage – protects the damages done to your car
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- Comprehensive coverage – protects against theft, weather damage, and wildlife damage
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- Uninsured/underinsured motorist coverage – protects you against accidents that involve uninsured or underinsured drivers
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- Rental car coverage – protects you if you are involved in an accident while driving a rental car
Further Reading: ELD for Truckers Aim to Improve Safety
Uninsured/Underinsured Motorist Coverage
The chances of being involved in an accident with an uninsured or underinsured driver are high, especially in Colorado. 17.5% of all drivers in Colorado are driving without car insurance, making Colorado the ninth-worst state in the country. Drivers can protect themselves by purchasing additional uninsured/underinsured motorist insurance (UM/UIM). The cost is relatively cheap compared to liability and collision coverage.
What Happens If the At-Fault Driver Doesn’t Have Insurance?
In Colorado, if you’re involved in an accident with an at-fault driver who lacks sufficient insurance, you can seek compensation through your own Uninsured/Underinsured Motorist (UM/UIM) coverage, provided you’ve elected this optional coverage. UM/UIM coverage can help pay for medical expenses, lost wages, and other damages when the other driver is at fault and unable to pay. Colorado law requires insurers to offer UM/UIM coverage in amounts equal to the policyholder’s bodily injury liability limits, unless the insured opts for a lower amount or rejects the coverage in writing. This ensures drivers have the opportunity to secure adequate protection in the event of an accident. If you don’t have this coverage, you may need to pursue compensation directly from the at-fault driver, which can be challenging if they lack sufficient assets.
Is Colorado A No-Fault State?
No, Colorado is not a no-fault state—it follows a traditional fault-based insurance system. This means that when a car accident happens in Colorado, the driver determined to be at fault is financially responsible for the damages, including medical expenses, lost wages, and vehicle repairs. Rather than automatically turning to their insurer for compensation (as is common in no-fault states), injured parties in Colorado typically pursue claims against the at-fault driver’s insurance. This system can influence how claims are handled, often requiring a clearer determination of liability before any payouts occur.
Does Insurance Cover Pain and Suffering in Colorado?
Yes, in Colorado, compensation for pain and suffering—classified as non-economic damages—is available through the at-fault driver’s liability insurance. However, it’s important to note that Colorado law imposes caps on non-economic damages in personal injury cases. As of January 1, 2025, the cap for non-economic damages in most personal injury cases is $1.5 million. This cap applies to claims filed on or after this date and is subject to biennial adjustments for inflation starting in 2028. To pursue compensation for pain and suffering, you would typically file a third-party claim against the at-fault driver’s insurance. Your own insurance policies, such as MedPay or UM/UIM, may also provide coverage for non-economic damages, depending on the specifics of your policy.
How Does Car Insurance Work With a Personal Injury Claim in Colorado?
In Colorado’s fault-based insurance system, if you’re injured in a car accident caused by another driver, you typically file a claim against the at-fault driver’s liability insurance to seek compensation for medical expenses, lost wages, and other damages. If the at-fault driver is uninsured or underinsured, and you have UM/UIM coverage, you can file a claim with your own insurer to cover the shortfall. Additionally, if you have Medical Payments (MedPay) coverage, it can help cover immediate medical costs regardless of who is at fault. Should insurance settlements not fully compensate your losses, you may consider filing a personal injury lawsuit to pursue additional damages.
Contact Our Colorado Springs Car Accident Lawyers
No matter what life throws your way, the Colorado Springs car accident lawyers at Schofield & Green Law Firm are ready and willing to help. Contact the experienced attorneys at the Schofield & Green Law Firm today to schedule a no-obligation consultation and discuss your case. Call us today at 719-694-8515.
