Well known for being the Rocky Mountain state with its mountains reaching well over 14,000 feet, Colorado attracts a lot of tourists from all over the world.  Skiing in the mountain resorts is a popular pastime for tourist and Colorado natives alike. Colorado also has the Great Plains, plenty of forested areas and brushes.  The rugged terrain coupled with the influx of tourists each year made it absolutely essential that Colorado State show concern for the safety of its drivers. The rugged terrain, the influx of tourists and the natural weather conditions such as snow, ice and sleet, led to the decision to make Colorado a no fault state and appropriate good insurance coverage for each of the state’s drivers.

Colorado Auto Insurance Requirements

Since Colorado is a no fault state that means that Colorado motorists can breathe without worrying about what would happen if they were only insured for one way coverage. It doesn’t matter who caused the accident each person’s insurance company would pay for the damages to property and bodily injury.  Of course how much is paid out is reflected in the amount of coverage the Colorado auto insurance owners have taken out along with the total cost of the damage.

By enacting no fault insurance, the state of Colorado eliminated the need for most court cases and was able to pass on the savings to the consumer.  In 2006, Colorado natives paid $1657 on average for their car insurance and by 2007 that amount dropped by 2.7%, to an incredible $1614.  This amount is $282 less than the national average.  Of course each individual Colorado auto insurance rate will reflect the driving habits of the motorist and will be charged accordingly

Even though Colorado auto insurance is deemed as no fault insurance it does have some exceptions whereby the basic coverage would not be enough and extra coverage would be necessary.  The driver who was actually at fault for the accident can be taken to court if the damages sustained to the person or car of the other driver is so extensive that minimum coverage could not cover it. Colorado State mandates that each driver carry Personal Injury Liability.

• Personal Injury Liability – The minimum is set at $25,000 for injury sustained by a single individual.
• Personal Injury Liability for additional persons – A total of $50,000 is set for more than one individual who was hurt in the accident.
• Property Damage Liability requirements for Colorado auto insurance is set at $15,000 and is to cover minimum payout for damage to the vehicle, or public or private property by the Coloradoan who caused the accident.

Even though these are the basic amounts mandated by law, still there will be people who have no insurance or who are underinsured and will not be able to pay for damage sustained in an accident.  The State of Colorado recommends that drivers also carry Uninsured Motorist Protection.  UM insurance will also offer coverage in case of a hit and run.

Personal Injury Protection coverage is required by Colorado law and can be purchased at the minimum amount, if the motorist also carries Comprehensive and Collision coverage.

PIP coverage covers the driver for medical injuries sustained in a car accident while Comprehensive and Collision insurance protects the driver against damage to the car due to natural occurrences such as hail stones or collisions with wildlife.  Comprehensive and Collision insurance will also protect the driver who was at fault to cover damages that exceed minimum coverage sustained on the other driver’s car.