Car insurance in Colorado (25/50/15)
- Minimum car insuranceColorado requires at least $25,000 bodily injury liability per person, $50,000 per accident and $15,000 property damage liability. PIP is not required. Uninsured/underinsured motorist coverage and $5,000 of medical payments coverage are included automatically unless you reject them in writing. Source
- Fault systemColorado has been an at-fault (tort) state since its no-fault law expired in July 2003. Source
Business insurance rules in Colorado
- Workers’ compensationColorado employers with one or more employees must carry workers' comp at all times, whether those workers are full-time, part-time or family members. The state is not monopolistic: over 500 licensed insurers write coverage, and Pinnacol Assurance must provide coverage to any Colorado employer. Source
Home insurance in Colorado
- Home insurer of last resortThe Colorado FAIR Plan was created by HB23-1288 and began offering homeowners policies on April 10, 2025 (commercial property followed on June 17, 2025). It covers property that the regular market won't insure, often because of wildfire or hail risk, which are the state's main homeowner catastrophe exposures. Source
Disasters, floods, hail, tornadoes and earthquakes in Colorado
| Measure | Colorado | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 12 | #45 of 51 | Most often for fire (7), flood (3), severe storm (2). El Paso County has been in 6 of them. |
| National Flood Insurance Program claims, 2005–2025 | 3,631 | #34 of 51 | $82.5 million paid; 55% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Homes in high-risk flood zones with a federal flood policy | 21% | #31 of 50 | 4,790 policies for 22,669 homes in the counties FEMA can measure; US: 40%. |
| Hail reports, 2016–2025 | 4,491 | #5 of 51 | 583 of them 2 inches or larger. Largest stone 5.25 inches, Yuma County, August 2023. |
| Tornadoes, 2016–2025 | 403 | #14 of 51 | 19 rated EF2 or stronger; 2,479 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 21 | #14 of 51 | Largest: magnitude 5.3, 6 km S of Valdez, Colorado, August 23, 2011. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
Look up the storm history of any county in Colorado.
The property risks that matter in Colorado
The Front Range is among the most hail-prone areas in the country, and the 2021 Marshall Fire showed how quickly grass fires can reach suburbs.
Hail is one of the most frequent property claims in Colorado. Read how your policy settles roof claims: some pay replacement cost, others pay actual cash value on roofs past a certain age, and cosmetic-damage exclusions are increasingly common. Impact-resistant (Class 4) shingles may earn a discount.
For homes in the Colorado wildland-urban interface, insurers increasingly use parcel-level wildfire scores. Document your mitigation work, keep your dwelling limit at full rebuild cost, and review extended replacement cost options.
Worth knowing in Colorado
Colorado is one of the newest states with a FAIR Plan; it began writing homeowners policies in April 2025. Colorado auto policies also include $5,000 of medical payments coverage and UM/UIM automatically unless you reject them.
Colorado coverage checkup
- Compare your auto liability limits with the Colorado minimum of 25/50/15 and with your actual assets.
- Read the roof settlement clause and ask whether Class 4 impact-resistant shingles earn a credit.
- Document defensible space and home hardening work with dated photos for your insurer.
- Add water backup coverage and keep heat on when the home is empty.
- Keep a current home inventory stored off-site.
Colorado’s insurance regulator
Insurance in Colorado is regulated by the Colorado Division of Insurance, which handles consumer complaints and licenses insurers and agents.
Sam Alishahi holds a Colorado nonresident insurance producer license (#972727, NPN 21022298) and places Colorado policies directly.
Common questions
What is the minimum car insurance in Colorado?
Colorado requires at least $25,000 bodily injury liability per person, $50,000 per accident and $15,000 property damage liability. PIP is not required. Uninsured/underinsured motorist coverage and $5,000 of medical payments coverage are included automatically unless you reject them in writing.
Is Colorado a no-fault state?
Colorado has been an at-fault (tort) state since its no-fault law expired in July 2003.
Do employers in Colorado need workers’ comp?
Colorado employers with one or more employees must carry workers' comp at all times, whether those workers are full-time, part-time or family members. The state is not monopolistic: over 500 licensed insurers write coverage, and Pinnacol Assurance must provide coverage to any Colorado employer.
What can a Colorado homeowner do if no insurer will write the house?
The Colorado FAIR Plan was created by HB23-1288 and began offering homeowners policies on April 10, 2025 (commercial property followed on June 17, 2025). It covers property that the regular market won't insure, often because of wildfire or hail risk, which are the state's main homeowner catastrophe exposures.
Will my Colorado policy pay to replace a hail-damaged roof?
It depends on the roof settlement terms. Some policies pay replacement cost; others pay actual cash value on older roofs or exclude cosmetic damage.
Why are insurers declining homes in parts of Colorado?
Wildfire risk models and rising rebuild costs have led some insurers to limit new business in high-risk areas.
More answers: Colorado homeowners insurance guide Colorado renters insurance and security deposit guide Colorado small business insurance requirements Colorado flood risk and NFIP guide Colorado life insurance consumer guide Denver home and auto insurance guide Colorado Springs home and auto insurance guide Guía de seguro de inquilinos y depósito de garantía en Colorado Requisitos de seguro para pequeñas empresas en Colorado Guía de seguro de vida para consumidores en Colorado Guía de riesgo de inundación y NFIP en Colorado
Sources
- Colorado: Minimum car insurance
- Colorado: Fault system
- Colorado: Workers’ compensation
- Colorado: Home insurer of last resort
- Colorado: insurance regulator
- NAIC: directory of state insurance departments
General information as of October 2026, not legal advice; confirm current rules with the agency.