What Are the Requirements for Commercial Vehicle Insurance in Colorado?

Jul 12, 2023 | Commercial Insurance

Seeking commercial auto insurance in Colorado can be complicated if your business has fleets using different types of vehicles. But it can also be a simple process if you run a small business with one or two vans. State requirements for commercial auto insurance are straightforward and easy to remember.

Commercial Auto Coverage for Several Business Types

You only need commercial auto insurance in Colorado if your business owns vehicles. Using your personal vehicle for work beyond the commute typically requires a separate commercial auto policy. In other words, you cannot use personal auto coverage for business purposes, since there’s a difference between personal and commercial insurance.

If you do need commercial auto insurance, there’s a wide variety of plans to choose from based on the type of vehicles you use. Different insurance plans exist for contractors, tractors, food trucks, and tow trucks.

What Is the Cost of Colorado Commercial Auto Insurance?

What you pay for commercial auto insurance in Colorado partly depends on where your business is located and its radius of service. Several other factors matter as well, such as industry, type of vehicle, and driving records. The amount of coverage you need, which should mirror your business liability risks, will also affect your costs.

Think about the risks that your vehicle presents in its routine round-trip missions. The longer the journey, the more coverage you should consider. Likewise, if employees only drive occasionally, your insurance costs can be much lower than for a company with daily driving assignments.

What Is the State Minimum Liability Limit for Colorado?

Similar to other states, Colorado’s minimum liability insurance for commercial vehicle owners can be expressed in a simple “25/50/15” format. Here are the three main parts a commercial auto insurance plan in Colorado must include:

  • $25,000 coverage for each person injured in a crash
  • $50,000 coverage for all accident victims
  • $15,000 coverage for property damage

The $50,000 limit portion covers hospital bills for bodily injury. You might have the safest drivers with clean driving records, but they can still cause accidents in unfamiliar territory on slick roads. Sometimes noise distractions or driving in hazy weather can lead to making the wrong turn at the wrong time. If you engage in interstate deliveries, remember that all states mandate minimum liability requirements.

What Are the Commercial Auto Insurance Requirements in Colorado?

The state generally requires all commercial auto policyholders to carry a minimum of 25/50/15 liability coverage. Certain companies must carry higher coverage if they use vehicles with USDOT or MC numbers. Federal regulators recommend large vehicles such as semi-trucks carry a combined single limit of $750,000.

Get Customized Commercial Auto Coverage with Us

The best starting point for determining your business insurance needs is to examine your risks. Contact our team at Riverbend Insurance, you can also give us a call at (855) 814-0308 to discuss your commercial auto insurance Colorado needs. We are happy to help guide you toward a useful customized plan for your business.

Riverbend Insurance Agency

Founded in Denver, Colorado, Riverbend Insurance is licensed in multiple states, continually expanding its reach throughout the country. We’re in the business of taking care of people in the most inopportune moments. That’s why our service starts and ends with people.