Why Do I Need State Minimum Coverage?

State minimum auto insurance coverage plays a vital role in keeping Colorado roads safer and ensuring that everyone has a basic level of financial protection.

Colorado law requires all drivers to maintain liability insurance, which helps cover the costs of injuries or property damage they may cause to others in an accident. The state minimums include coverage for bodily injury per person and per accident, as well as for property damage.

These limits are the lowest amount of coverage you can legally carry and still operate a vehicle in Colorado. Each state sets its own limits, which are subject to change. For more information, please contact Legacy Insurance.

Why Colorado Has State Minimum Coverage Requirements

Colorado’s minimum insurance requirements help ensure that drivers can cover the costs of the damage they cause, since accidents often involve expensive medical bills, vehicle repairs and potential legal fees. Without mandatory coverage, injured drivers and passengers could be left paying out of pocket for someone else’s mistake, creating financial strain for victims.

Requiring liability insurance also helps keep uninsured driving rates lower. When more drivers carry at least basic coverage, there are fewer situations where accident victims have no way to recover their losses.

Minimum coverage helps drivers avoid serious legal consequences. Colorado imposes fines, license suspensions, and even vehicle impoundment for those caught driving without insurance. The state minimums create a baseline level of protection that supports both individual drivers and the broader community.

Why State Minimum Coverage May Not Be Enough

While state minimums satisfy legal requirements, they may not provide sufficient protection in the event of a severe accident. Medical bills and vehicle repairs can easily exceed minimum limits, leaving you responsible for the remaining costs.

For example:

• A single totaled vehicle can exceed $15,000 in property damage
• Hospital bills for one injured person can surpass $25,000
• Multi-vehicle accidents often involve multiple injury claims

Once your insurance limits are exhausted, you are responsible for the rest. That’s why many Colorado drivers choose higher liability limits or additional coverage options, such as collision, comprehensive, medical payments, or uninsured motorist protection.

How Legacy Insurance Helps Colorado Drivers Get Appropriate Coverage

Legacy Insurance helps drivers:

• Understand state minimum requirements
• Compare policies from multiple top-rated insurers
• Choose coverage that meets legal obligations and personal needs
• Find affordable options that offer stronger protection than the minimum
• Get support with policy updates, renewals and claims

Our team works with Colorado drivers every day, helping them stay compliant while building coverage that protects their finances.

Contact Legacy Insurance to explore your options and select coverage that suits your life and budget.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.