Insurance Center

Just like every other state, Colorado has gone to great lengths to require that citizens with vehicles in operation on the roads and highways meet minimum insurance requirements. It is impossible to legally register a vehicle in the state without verifiable proof of liability coverage.

If you are driving about without proper registration (or any at all) just so you do not have to purchase insurance, you might consider parking it in the driveway and hopping the bus. Seriously, the consequences of getting stopped without proof of insurance, or even worse causing an accident, are just not worth the penalties compared to a couple hundred bucks a month or $1.50 for bus fare.

Minimum Insurance Requirements

Although insurance companies will recommend carrying both comprehensive and collision (if the vehicle is under a lien to a dealer or bank, collision is necessary) the minimum liability requirements in Colorado (also known as 25/50/15) are as follows:

• $25,000 per person for bodily injury

• $50,000 per accident for bodily injury

• $15,000 per accident for property

Penalties for Driving Without Proof of Insurance

A first offense alone will set you back a minimum of $500 and tack four points onto your motor vehicle record, which in turn will make insurance rates substantially more expensive.

And, it gets worse from there: a second offense is a minimum $1,000 fine and a license suspension of four months. Get a third violation, and you are looking at possible community service (40 hours or so), a minimum $1,000 fine, and an eight-month license suspension.

Colorado Motorist Insurance Identification Program (MIIP)

The state is such a stickler when it comes to insurance coverage, that in 1997 the legislature enacted a program tracking the coverage status of residents with vehicles. The confidential program, which was simply designed to reduce the number of uninsured drivers on the roads, requires insurance companies authorized in the state to provide information on their customers' polices. Basically, your insurance company notifies the state that you are indeed covered or that you canceled a policy and might be driving without coverage.

Although the Big Brother talk may be inevitable, the program has had successes, and it was renewed in 2001. However, after a marathon head-butting session the 2006 legislature decided to remove the enforcement arm of the program. Thus, if you received a note in the past, whether in error or because you let your insurance lapse, you will not receive another.

The state decided to take control of the program for the private entity initially running both the collection and enforcement arms. What this means is that insurance companies still report new policies and cancellations to the state. But at this point drivers are no longer put on notice via mail and required to show proof of insurance or face losing registration.

Exemptions

If you are residing out-of-state temporarily, in the military, or the owner of a seasonal vehicle (motor home, motorcycle, etc.) you can fill out the following affidavit requesting reprieve from the Colorado insurance requirement. The completed form, due annually, should be returned to your local title and registration office.