How much car insurance do I need?

Complete Guide to How Much Car Insurance You Need

Why This Question Matters for Colorado and Utah Residents

Choosing the right amount of car insurance isn’t just about following the law—it’s about protecting your finances and peace of mind against real risks we face on Colorado and Utah roads.

• State minimums are often too low: Colorado requires 25/50/15 ($25,000/$50,000/$15,000) liability and Utah requires 25/65/15, but accident costs can easily exceed these limits.
• Severe weather and theft rates: Northern Colorado and Utah see high hail damage (average claim $4,800+) and rising car theft (560 per 100,000 in CO hot spots).
• Medical and legal costs are rising: Typical injury accidents often involve $50,000+ in damages, with legal expenses exceeding $58,000 if limits are too low.

What Most People Get Wrong

Many believe meeting legal minimums means they’re fully protected. In reality, a single moderate accident or storm can leave you responsible for thousands beyond your policy limits.

Others skip comprehensive or uninsured motorist coverage, not realizing the out-of-pocket risk of hail, theft, or hit-and-runs—common events in our region.

The Complete Picture

The amount of car insurance you need depends on your state’s requirements, your assets, and how much financial risk you can absorb after a crash or claim. At a bare minimum, all drivers in Colorado need 25/50/15 liability coverage; in Utah, the minimum is 25/65/15. But data shows the average vehicle repair from hail in Colorado is $4,800, while an at-fault accident averages $2,500 in claims—well beyond what lower policies may handle, especially with medical injuries or lawsuits.

To stay protected, most FoCoIns experts recommend at least $100,000/$300,000 in bodily injury liability, $50,000 in property damage, and comprehensive and collision coverage for your vehicle—especially if you have a newer car or can’t afford a big surprise expense. Comprehensive protects against regional risks like hail, theft, and even animal collisions, while uninsured motorist coverage shields you if the other driver has no insurance (about 14% of drivers). Adjust deductibles to fit your budget—but ensure you can pay them when needed. Remember, your insurance is there to safeguard your savings and future, not just to satisfy state law.

Making the Right Decision for Colorado and Utah Residents

Question 1: What is the realistic worst-case scenario on my routes?

Think locally: Accidents on I-25, hail in Fort Collins or Salt Lake City, or theft in urban neighborhoods can each mean huge repair and liability costs.

• Consider local stats: $4,800 average hail claims, $2,500+ average at-fault accident payouts, and theft surges for common car models.
• Ask if your liability limits cover injuries and property damage in an expensive crash.

Question 2: How much can I afford as an unexpected expense?

If a hailstorm or accident left you with a $1,000+ deductible (or much more with only minimum coverage), could you comfortably pay it? High deductibles lower your premium but can strain your budget if an incident happens. Balance monthly savings with your emergency fund.

Question 3: Does my life stage or vehicle make a difference?

Young drivers, families, and those with valuable or financed vehicles may need more coverage, including collision, comprehensive, and higher liability limits. Tailor your policy to your risks—student drivers near CSU, commuters on busy highways, or rural residents each face different exposures in CO and UT.