When shopping for car insurance, the temptation is always to ask for "just the minimum to be legal." But in Colorado, driving with state minimum limits is a massive financial risk that could result in wage garnishment and bankruptcy if you cause a serious accident.
What is the Colorado state minimum?
Colorado law requires all drivers to carry liability insurance with limits of at least 25/50/15:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $15,000 per accident for property damage
Why the minimum is dangerously low
Imagine you rear-end a new SUV on I-70, totaling the vehicle and injuring the two occupants. A new SUV costs upwards of $40,000. Your state minimum property damage limit is only $15,000. That leaves you personally responsible for the remaining $25,000.
Furthermore, an ambulance ride and a short stay in the emergency room for the injured parties will quickly obliterate the $50,000 bodily injury limit. Once your insurance pays out its maximum limit, the victims' lawyers will come after your personal assets, savings, and future wages.
What we recommend
Cassondra recommends that most drivers carry liability limits of at least 100/300/100. The cost difference between state minimums and these protective limits is often surprisingly small—sometimes just $10 to $20 a month.
Don't forget Uninsured Motorist Coverage
Colorado has a high rate of uninsured drivers. Uninsured/Underinsured Motorist (UM/UIM) coverage pays for your medical bills if you are hit by someone who doesn't have insurance. State law requires insurers to offer it, but allows you to waive it. Don't.