Colorado car insurance authorities require that all Coloradoans purchase a minimum amount of car insurance in order to drive in the state. These car insurance limits are generally written as three numbers - 25/50/15. The first two numbers represent the amount of bodily injury car insurance that you're required to have (max per person / max per accident). The last number tells you the minimum amount of liability property car insurance that you need to have. Still confused? Don't worry; no Colorado car insurance company can legally sell you a car insurance policy that doesn't meet these minimums. But it's also important to note that while Colorado requires that you carry at least this amount, it's always a good idea to buy higher limits which gives you more financial protection in the unfortunate event that you are involved in an accident that is deemed to be your fault.
So you know that you probably need to buy more car insurance than the minimum that Colorado requires - but how much more? That a complicated question so we won't answer it fully here but there are some important things to consider. What's always best is to speak with a licensed Colorado car insurance agent before buying any new car insurance policy to ensure that the coverage you're getting will leave you protected.
First, think about your net worth which includes the price of your home (if you own one), stocks, bonds, checking / savings account, etc. You're thinking about those things because that's what's at risk in the event that you cause an accident and your Colorado car insurance liability limits aren't enough to cover the medical bills of someone who is injured in the accident or if that same victim sues you and a court awards damages in excess of the stated limits of your Colorado car insurance policy. You could be on the hook for a lot of money in that case and the higher the liability car insurance limits the less likely it is that you'll have to pay out more from your own pocket.