Colorado drivers can breathe easy in 2025. The state’s minimum auto insurance requirements remain unchanged at 25/50/15, meaning you don’t need to update your policy or pay higher premiums if you already carry minimum coverage. However, just because the law hasn’t changed doesn’t mean your current coverage adequately protects you in today’s world of rising medical costs and expensive vehicle repairs.

Colorado’s auto insurance laws continue to require all drivers to carry liability insurance with specific minimum limits. If you’re involved in an accident in Colorado, your insurance must provide at least $25,000 per person for bodily injury, $50,000 total per accident for bodily injuries, and $15,000 per accident for property damage. These minimums haven’t budged, but the real-world costs of accidents have skyrocketed, creating a dangerous gap between legal requirements and actual protection.

Why Minimum Coverage May No Longer Be Enough

While state minimums meet legal requirements, they often fall short when accidents occur. Medical expenses continue rising, with even minor emergency room visits costing thousands of dollars. The average cost of a new vehicle now exceeds $48,000, making the $15,000 property damage minimum woefully inadequate if you collide with a newer car.

Consider this scenario: You cause an accident injuring two people. One person requires surgery and rehabilitation totaling $40,000 in medical bills. Your policy pays the maximum $25,000 for that person, leaving you personally responsible for the remaining $15,000. The second injured person has $30,000 in expenses, but your policy only pays $25,000 more (reaching the $50,000 per-accident limit). You’re now $20,000 out of pocket. If you also damaged the other driver’s $35,000 SUV, your $15,000 property damage coverage leaves you owing another $20,000.

Optional Coverage You Should Consider

Colorado law requires insurers to offer medical payments coverage, commonly called MedPay, with a minimum of $5,000. This coverage pays for your medical expenses after an accident, regardless of who was at fault. While you can decline it in writing, MedPay provides valuable protection, especially if you have a high-deductible health insurance plan.

Uninsured and underinsured motorist coverage protects you when hit by drivers who lack adequate insurance. With approximately 17.5% of Colorado drivers operating without insurance, this coverage is critical. Insurers must offer UM/UIM coverage at the same limits as your bodily injury liability, though you can waive it in writing.

Collision and comprehensive coverage protect your vehicle. Collision coverage pays for damage to your car after an accident, while comprehensive covers theft, vandalism, weather damage, and encounters with wildlife. These aren’t legally required but may be mandated by your lender if you’re financing your vehicle.

What Happens If You Drive Without Insurance

Colorado takes uninsured driving seriously. First-time offenders face a minimum $500 fine and license suspension until they provide proof of insurance to the DMV. Second offenses bring $1,000 fines and four-month license suspensions. Third and subsequent violations result in $1,000 fines and eight-month suspensions, plus potential community service requirements and vehicle impoundment.

Beyond legal penalties, driving without insurance exposes you to devastating financial risk. If you cause a serious accident without coverage, you’re personally liable for all damages and injuries. This can result in wage garnishment, liens on property, and potentially bankruptcy.

Evaluating Your Current Coverage

Review your policy annually to ensure it still meets your needs. Higher liability limits, such as 100/300/50 or even 250/500/100, provide better protection without dramatically increasing premiums. The additional cost often amounts to just a few dollars per month but can save you from financial ruin.

Consider your assets when choosing coverage limits. If you own a home, have significant savings, or earn a substantial income, you need enough coverage to protect these assets from lawsuits after an accident. The minimum 25/50/15 coverage won’t shield you from personal liability if damages exceed these limits.

Get Help from Mintz Law Firm

Navigating Colorado’s insurance requirements and dealing with insurance companies after an accident can be overwhelming. At Mintz Law Firm, our team brings decades of combined experience helping accident victims understand their rights and maximize their compensation. We work with clients throughout Colorado, handling cases involving car accidents, truck collisions, motorcycle crashes, and more.

Whether you’re questioning if your current coverage is adequate or you’ve been injured by an uninsured driver, we’re here to help. Our attorneys fight to protect your interests and secure the compensation you deserve. Contact our team today to schedule a free consultation and learn how we can assist with your case.