State Minimums and Car Insurance: How Much Insurance Do I Need?


Each state has certain minimum requirements when it comes to car insurance. With low monthly rates, sticking with these state minimums can be tempting. But is this coverage enough?


Insurance is designed to protect people when the unimaginable happens. No one wants to consider the possibility of a serious accident or the consequential events that may occur. However, as insurers, we must take these possibilities into account. Minimal coverage is exactly what it sounds like, minimal. In the event of an accident, state minimums may not be adequate enough to cover all expenses and you would be held liable for damages. Those additional expenses can turn into a lawsuit, and one may find themselves in a complicated financial position.


In Colorado, our state minimums are $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $15,000 for property damage per accident (25/50/15). These are liability limits that will only cover the damage you cause another driver and/or property owner.


As insurers, what do we recommend?


Bump up your liability insurance to at least 100/300/100. This should be the bare minimum to protect your assets.

Add comprehensive and collision insurance. This will protect your vehicle from damages that occur from an accident and other events such hail, theft, vandalism, contact with animals, etc.

Add uninsured/underinsured motorist coverage. This coverage is important to protect you from underinsured or uninsured motorists on the road.

Add medical payments or personal injury protection (PIP). This will cover lost wages, and treatment of any injuries sustained by you or other passengers in your vehicle. Medical payments can be used right away for costs like an ambulance, or physical therapy. And it does not need to be paid back.

Add an umbrella policy. The umbrella will extend your liability limits to $1M on your car, toys and home in the event of a claim. This can be increased as well.


If you are looking to add these coverages but want to keep your lower costs, let’s look at raising your deductible or bundling your policies to help save on your premium.

Proper insurance coverage will protect your assets, as well as future earnings which is priceless!