CO Auto Insurance Legalities

If you are purchasing a policy for the first time or simply looking to renew your CO auto insurance, you are obliged to meet all current legislation that exists in the state of Colorado. It is important to understand the required levels of coverage and the mandatory minimum requirements as this can prevent any problems with being underinsured if you are ever involved in a road traffic accident

Your policy must have the minimum bodily injury liability and property damage liability coverage levels. CO auto insurance legislation has minimum amounts set for both. Road users are required to purchase $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability per accident and property damage liability to the value of $15,000.

A CO car insurance policy does not have to include uninsured and underinsured motorist coverage but all auto insurance companies with a license to operate in Colorado are legally obliged to offer UM/UIM coverage at levels of $100,000 per person and $300,000 per accident. If a policyholder doesn’t want additional coverage, it must be rejected in writing. UM/UIM auto insurance leaves motorists better protected if they are involved in a collision with an uninsured or underinsured driver.

New regulations that came into force in January 2009 also require all CO auto insurance carriers to include medical payment coverage automatically whenever a new policy is issued. Road users must opt out this arrangement in writing for the additional coverage to be removed.