Motorists in Colorado must maintain financial responsibility at all times while behind the wheel of an automobile and the majority of residents choose to do so by purchasing and maintaining auto insurance coverage. The state mandates that all motorists must have compensation in place in the event that they cause a traffic accident and injure another driver, passengers, pedestrians, bicyclists or any other party that may be occupying the roads. Although there may be other ways accepted by the state as form of financial responsibility, Coloradans often choose to purchase a policy in order to comply since it can be a more affordable option.

If a resident driver does choose to purchase a Colorado car insurance policy to be in compliance with the state’s laws, they will have to obtain liability limits consisting of no less than $25,000 for bodily injury to one person, $50,000 for bodily injury for two or more people and $15,000 for property damage per accident. Higher limits of liability can be purchased and is often recommended; usually in the amounts of $100,000 for bodily injury to one person, $300,000 for bodily injury per accident and $50,000 for property damage. Motorists should also be aware that the required liability policies only cover the bodily injuries and/or property damage sustained by a third party.