Liability Insurance — Colorado
Liability insurance pays for damage and injuries you cause to others in an at-fault accident — it does not cover your own vehicle or medical bills.
Free to compare
What Is Liability Insurance Insurance?
Liability insurance is split into two parts: bodily injury liability, which pays medical expenses, lost wages, and legal costs when you injure someone in an accident, and property damage liability, which covers repair or replacement of other people's vehicles and property you damage. If you cause an accident and the damages exceed your liability limits, you are personally responsible for the difference, which can result in wage garnishment or asset seizure.
Who Needs Liability Insurance Insurance?
You need liability insurance in Colorado if you own a registered vehicle, even during a license suspension — driving or not, registration requires proof of continuous coverage. SR-22 filers must maintain liability coverage for the entire three-year filing period without a single-day lapse, or the state re-suspends your license and restarts the clock.
If you own a car or need SR-22, liability insurance is mandatory — no decision to make. If you are suspended without SR-22 requirement and do not own a vehicle, you can skip coverage until reinstatement. If you drive occasionally using a borrowed car, consider non-owner liability to protect yourself from personal financial liability in an at-fault accident, even if the state does not require it.
How Much Does Liability Insurance Insurance Cost?
- Age and experience — drivers under 25 or over 70 pay higher liability rates, and newly licensed drivers of any age face surcharges until they establish a three-year clean driving record.
