Colorado Car Insurance Requirements

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Colorado is one of the semi-flexible states where its car insurance requirements are concerned. For the vast majority of individuals, liability insurance is required to be maintained. They do offer a financial responsibility option for businesses. Colorado has its own unique liability insurance and proof of insurance mandates, as well as penalties for not having this insurance minimum and a regulatory environment.

Colorado Liability Insurance Mandates

Colorado’s liability coverage minimums are much like other states. One difference is that they do permit a combined single limit for this auto insurance. The liability insurance requirements are listed as follows:

* $25,000 for single person bodily injury coverage.
* $50,000 for single accident bodily injury coverage.
* $15,000 for single accident property damage coverage.

If an individual opts to go with the combined single limit that Colorado accepts, the amount minimally permissible by law in the state is $65,000. Colorado does not require comprehension or collision insurance coverage. A lender might require collision coverage from a person until the vehicle loan is actually paid off. Because of this, the law of Colorado requires insurance companies to offer individuals collision coverage on their vehicle, even though it is optional coverage as far as the state is concerned.

Colorado Financial Responsibility Equivalent

Colorado only allows one case of financial responsibility equivalency. This pertains to those who own twenty-five or more vehicles that are actually registered in the one individual’s name. For these persons, a self service insurance possibility is made available.

Colorado Proof of Insurance

Colorado maintains an insurance database, although it is not as exhaustive and mandatory as some states. When a police officer requests proof of insurance, the driver should be prepared to show either a self insurance certificate, an insurance company insurance card, or an insurance company letter that is typed up on the company’s letterhead.

Colorado Penalties for Not Maintaining Liability Insurance

If a driver is found to be operating a vehicle without being able to demonstrate his or her proof of insurance upon demand, this is deemed to be a misdemeanor. Failure to maintain such liability insurance incurs the penalties listed out below:

* First Offenders are given a fine of at least $500 with a potential suspension. They also have four points put on their driving record.

* Second Offenders are issued a thousand dollar fine, as well as a four month long suspension.

* Third Offenders are levied a thousand dollar fine, along with community service. They are also suspended for eight months.

Colorado Regulatory and Legal Environment

Financial and legal responsibility centers on the laws of negligence within the state of Colorado. Negligent acts on the parts of drivers that lead to injury or damage in an accident are called torts. Should an accident be the fault of a person, then he or she is ultimately responsible for any property damages and physical injuries that have been inflicted upon the other innocent party. One can read more about the Colorado regulatory and legal environment by typing in the following link to his or her browser:

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