Driving Without Insurance in Colorado – Penalties and Costs

On the surface, driving without insurance in Colorado can feel like a great way to save money. After all, in Colorado driving without insurance is a pretty common occurrence. The Centennial State ranks 13th according to the Insurance Research Council with 16.3% of drivers being uninsured.

But the truth about a car accident with no insurance in Colorado is that there are legal issues and financial repercussions that can come in the aftermath. For your first offense, an accident without insurance in Colorado may not be the end of the world from a legal standpoint, but it should still be avoided.

Jail time isn’t necessarily always avoided. Moreover, there are several financial setbacks that you’ll experience even beyond the legal issues that will arise.

Overall, you’re going to always want to be sure that you have auto insurance in Colorado. Learn more about the consequences of driving without insurance in Colorado and how to avoid the issue altogether with affordable, personalized coverage.

 

Is Driving Without Insurance a Misdemeanor in Colorado?

Yes, driving without insurance in Colorado is a misdemeanor under the authority found in Colorado Statute 42-4-1409 (Title 42). Considered a Class 1 misdemeanor, driving without insurance can lead to fines and community service, even if it’s your first offense.

Technically, jail time, a suspension of your driving privileges, and other financial repercussions are not off the table. You’ll also receive up to four points on your driving record and face higher auto insurance rates as a result.

It’s important to note that when it comes to car insurance, you’re going to need a policy in virtually every state. Only Virginia and New Hampshire don’t have mandatory insurance laws for drivers, but the type of policy you maintain is also going to be important to understand.

To avoid driving without insurance in Colorado, liability coverage is necessary. Furthermore, you’ll need to have a minimum amount of coverage to help protect against both property damage and bodily injury. Here’s how that breaks down for drivers in Colorado:

• $25,000 for bodily injury or death up to one person per accident
• $50,000 for bodily injury or death for all persons per accident
• $15,000 for property damage caused per accident

Overall, to stay legal, you’re going to have to maintain liability coverage in Colorado, but there are several other coverages that can help you stay protected. While not required by law, it’s important to familiarize yourself with each coverage to understand how to mitigate your risks:

• Liability coverage may protect you in an accident you’ve caused, but your vehicle can become damaged outside of driving. In these cases, you’re going to need to have comprehensive car insurance in Colorado. This keeps you protected from things such as weather-related damage that might harm your vehicle.
• Of course, if you are in an accident, even if you have liability coverage, if you’re at fault, you’re going to need collision insurance to cover repairs to your own vehicle. Otherwise, you’ll be facing a hefty repair bill and forced to pay it out of your own pockets.
• One of the best options for most drivers is to simply combine liability, comprehensive, and collision coverages. This is what’s known as full coverage auto insurance in Colorado and it’s an affordable way to protect yourself from more.

 

What Is the Penalty for Driving Without Insurance in Colorado?

The fine for driving without insurance in Colorado depends on your previous offenses. Repeat offenders face higher fines and stricter punishments, while even first-time offenders can face significant penalties. Below, we’ll review the penalties you can face for forgoing Colorado insurance for your vehicle.

 

Penalty for Driving Without Insurance in Colorado (First Offense)

Although everyone makes mistakes, driving without insurance in Colorado is completely avoidable. You don’t have to have every coverage, but it’s mandatory to maintain the minimum liability coverage required by law. Failure to do so will result in consequences.

Here are the penalties the first time you are caught driving without insurance in Colorado:

• Fines for your first time driving without insurance in Colorado are going to be no less than $500.
• You can expect as many as four points on your license.
• Your license will be suspended. This will be in place until you go to the Division of Motor Vehicles (DMV) with proof of insurance for your vehicle.
• If your license is surrendered to the police or the DMV, you’ll need to pay a $40 fee for a replacement, while submitting proof of liability insurance within seven days in the form of an SR22 form. The SR22 will remain with you for three years.
• On top of all of this, you’re going to also be subject to participating in as much as 40 hours of community service, at the discretion of the court.
• Furthermore, if you don’t have a legal method of getting your vehicle to your home, be prepared to have your car towed and possibly impounded.

 

Colorado Penalty for Driving Without Insurance (Repeat Offenders)

Although nothing to scoff at, the first time you are caught driving without insurance in Colorado, there are realistic, manageable consequences that will come. The idea is to correct the behavior so that it doesn’t happen again.

Yet, if you are a multiple offender, things are only going to get worse. This means more complications, more costs, and harsher punishments. Here’s what happens for drivers who don’t maintain valid liability coverage in the Centennial State:

• If it’s your second offense, you’ll face stiffer fines. Be prepared to pay at least $1,000 if not more. The same is true if it’s your third offense or beyond, but it’s likely that these fines will grow over time for those who commit the same offense multiple times.
• Rather than suspending your license until you obtain proof of insurance, second-time offenders will have a four-month suspension. If it’s your third time, you’ll lose your license for eight months.
• Just as before, as much as 40 hours of community service may be part of your punishment no matter which offense it is. You may also have your vehicle towed or impounded as well.

There are fees to tow your vehicle, the cost of getting your license back, and not to mention, the hassle of not being able to move around as you please. Furthermore, the loss of income can be tremendous during this time.

 

Car Accident Without Insurance Not at Fault Colorado

Being in an accident without insurance in Colorado can still lead to many of the repercussions listed above. However, you’ll still be able to file a claim with the other party’s insurance company to restore your property damage and the losses due to bodily injury.

Liability coverage isn’t for the person driving to have their losses restored but rather for any party they hit. Because the at-fault driver caused the accident, it is their responsibility to restore the losses.

But if you are driving without insurance in Colorado, not only are you subjecting yourself to a wide array of legal issues, but filing a claim is going to be that much harder. Even if you’re not at fault, here’s why not having car insurance in Colorado can hinder your efforts to restore your losses:

• Determining who is at fault isn’t for you or the other driver to decide. Under normal circumstances, both insurance companies will look at the evidence, compare their findings, and come to a conclusion. In this case, you’ll have to simply wait on the other party’s carrier as you are stuck in limbo about the process.
• Furthermore, there are many instances in which partial fault car accidents may occur and you’ll need to prove that you are less at fault than the other party or you will find yourself bearing the financial responsibility.
• Ultimately, these issues and more arise for the same reason: you don’t have anyone else on your side. The one way you can alleviate this is through legal representation but that can often be far more costly than it’s worth. The bottom line is that you’re going to want experts on your side throughout the process.

On top of being alone in the process, filing a claim may even take longer if you don’t have insurance because it can be much harder to communicate with the other party’s carrier. The aftermath of a car accident is often best left to the two carriers handling things while your company communicates with you. That can’t happen if you fail to maintain your auto policy.

 

Car Accident Other Party Has No Insurance Colorado

If you’re driving in a vehicle and find yourself in an accident in which the other party has no insurance but you do, you may be in a better position, but things can, unfortunately, get complicated.

The main thing that will determine how things go is whether or not you are at fault. If you are at fault but you’ve maintained your coverage then it’s pretty much like any other accident. Your carrier will assist in the process, the other party will file a claim, and you’ll proceed as you would with an insured driver in most cases.

However, if you are not at fault, several scenarios and factors can play out. To put things bluntly, they often are quite frustrating and inconvenient:

• When another party is driving without insurance in Colorado and causes an accident, without the right coverage, you’ll have to take legal action against them to restore your losses. A process that is both costly and time-consuming.
• Sadly, even lawsuits can be a bit of an issue. You can win, but the entire time, you will be dealing with the financial ramifications that come from being in an accident.
• Furthermore, even if you do win, you may never gain the compensation you seek. A judge can award whatever they see as necessary, but if the other party is unable to pay it then it won’t do you much good. Worst of all, not only are you back at square one, but you’re also likely facing additional costs due to the lawsuit.

With so many uninsured drivers on the road in the Centennial State, it’s important to consider uninsured/underinsured motorist coverage (UI/UIM). Having a UI/UIM policy helps safeguard you against uninsured drivers and those who do have policies but maintain coverage limits that are too low to cover your losses.

Additionally, UI/UIM coverage can help protect you in the event of a hit-and-run situation, further increasing its value to drivers. Dealing with a car accident with no insurance in Colorado is never ideal, but there are measures in place to help you mitigate your risks.

 

What Happens if You Are an Uninsured Driver Driving an Insured Vehicle in Colorado?

If you are driving without insurance in Colorado as a driver but the vehicle is covered, many issues can arise. In an ideal world, all drivers and vehicles will have the appropriate coverages in place, but many scenarios can arise. These include the following:

• Uninsured drivers can use your vehicle with permission and if the car’s auto insurance policy permits it. However, both you and the uninsured driver share responsibility for damages beyond your policy limits. This is known as “permissive use” and applies only to occasional use cases for drivers with a valid license.
• Auto insurance policies vary and some have “named-driver exclusions,” particularly for high-risk drivers. In this case, you’re only insured for drivers specifically listed on your car insurance policy. Depending on your circumstances and provider, you may also have a “step-down policy” that reduces coverage limits and the coverage in effect when unlisted drivers are driving.
• Most auto insurance companies require listing someone living in your home as a named driver. However, this may not apply to roommates in certain cases, and other individuals can be excluded based on circumstances. If an excluded driver has an accident with your vehicle, your claim will be rejected. It’s important to list anyone who regularly drives, even if they are not a household member, on your policy.
• Finally, if you are lending your vehicle to someone who doesn’t have a vehicle of their own but frequently use yours, a non-owner policy should be in place by the driver to avoid issues.

 

The Risks of a Colorado Car Accident With No Insurance

Driving without insurance leads to legal complications, but the consequences go beyond fines and hassles from your local government. Liability coverage is meant to minimize financial losses in accidents, and without proper coverage, you may face significant financial hardships.

This can include rising costs for vehicle repairs, medical bills, and legal expenses. Paying for auto insurance is much more affordable than risking potential financial ruin. Here are some key considerations you’ll want to weigh before neglecting an auto insurance policy:

• Colorado is ranked as the third-highest state for auto repairs and the costs are only rising. Labor and parts have seen tremendous growth in cost in recent years due to inflation. When you consider the supply chain issues that are also causing delays, higher costs are also coupled with longer wait times, creating a vicious cycle.
• If you end up totaling a vehicle, you may be responsible for replacing it outright. This occurs when it would cost more to fix the vehicle than to repair it. Because of rising costs for repairs, this scenario is much more common than you might think.
• Fixing a vehicle is expensive but it’s nothing compared to the medical bills that may stem from a wreck. If you are responsible for covering medical bills, you could be looking at tens of thousands of dollars in medical expenses. In more extreme cases, fatalities can not only have extremely high medical bills but also funeral costs to contend with.
• Furthermore, if you’re at fault in a car accident and don’t have coverage, you’ll need legal representation. This is going to be quite expensive in most cases and on top of the legal fees you will incur, you also may be at risk of losing financial assets to help cover the losses of the other party and/or pay for your legal team.

All of these risks persist yet there are even more expenses to consider, including your own. Your best course of action is to avoid driving without insurance in Colorado to mitigate these risks with the right coverage for your needs.

 

How To Save Money and Avoid Driving Without Insurance Colorado

Driving without insurance in Colorado comes with significant legal and financial risks. At Freedom Insurance Group, we prioritize helping drivers obtain the necessary coverage while saving money through cheap car insurance in Colorado. Here’s how we help drivers:

• We collaborate with a wide variety of top-rated auto insurance brands in Colorado, allowing us to compare rates and provide the right coverage at the lowest price.
• Since each driver’s risk and protection needs differ, we thoroughly compare rates based on various factors to personalize your coverage and rate.
• We offer discounts tailored to a wide range of customers, and our dedicated agents strive to find the best discounts when comparing your coverage.
• Our exceptional service ensures assistance when you need it most. By partnering with financially stable agencies, we guarantee that your claim will be settled in full and on time.

Working with a variety of carriers provides more coverage options, better discounts, and ample bundling opportunities. Since 2005, we’ve been helping drivers save an average of 40% on their car insurance premiums. Let us help you.

Avoid driving without insurance in Colorado with affordable coverage that keeps you legal and protects you from financial loss. Contact us today or get a free online auto insurance quote to see how much you can save on your policy.