For the Colorado Personal Lines exam, the Personal Auto Policy (PAP) is tested two ways: the national policy structure and the Colorado auto laws layered on top of it. This standalone guide walks through the lettered parts every PAP uses, then focuses on the Colorado rules an agent must apply every day—the financial-responsibility minimums, the at-fault legal system Colorado adopted after repealing no-fault, modified comparative negligence, uninsured- and underinsured-motorist coverage, and how policies can be cancelled or nonrenewed. Spend your study time on the Colorado overlay; that is where the state questions live.

The national fundamentals (quick version)

The Personal Auto Policy insures individuals and families for the vehicles they own and drive. It is divided into clearly labeled parts:

• Part A — Liability Coverage: pays for bodily injury (BI) and property damage (PD) the insured is legally responsible for, with a duty to defend and supplementary payments (defense costs, bail bonds, court costs) paid on top of the limit.
• Part B — Medical Payments: pays reasonable medical and funeral expenses for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays your injuries when the at-fault driver has no insurance or too little.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, paid at the lesser of Actual Cash Value (ACV) or repair cost.
• Part E — Duties After an Accident or Loss and Part F — General Provisions set the rules.

An insured generally includes the named insured, the resident spouse, resident family members, and anyone using the covered auto with permission. A newly acquired auto is covered automatically for a limited time if the insured notifies the insurer within the required period. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business; using the vehicle for public/livery or ride-hailing for a fee without proper coverage is commonly excluded. That skeleton is the same nationwide; Colorado changes the dollar limits and the legal environment around it.

Colorado is an at-fault (tort) state

Colorado follows a tort (at-fault) system. An important exam point: Colorado repealed its no-fault auto law (the change is commonly dated to 2003—verify), so the state no longer requires PIP. Whoever causes the crash is financially responsible, and the injured person recovers from that driver's liability insurance—or sues. Because of this, liability coverage and proof of financial responsibility are the backbone of Colorado auto regulation.

When both drivers share blame, Colorado uses modified comparative negligence. Picture a cutoff near the halfway mark: an injured person who is 50% or more at fault generally recovers nothing. If their share is less than 50%, they can still collect, but the payout is trimmed by their own percentage of fault. Treat the exact threshold as a figure to verify, and contrast it with a pure comparative system (where any at-fault claimant recovers something) and a no-fault system (where each driver turns first to their own coverage).

Financial responsibility: the 25/50/15 minimums

Colorado drivers must demonstrate financial responsibility, almost always by buying liability insurance that meets the state's minimum split limits, commonly cited as 25/50/15:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident

Agents say this aloud as "25/50/15." These are bare-minimum floors—most clients should buy more to protect their assets. A driver required to prove responsibility after certain violations may need to file an SR-22 certificate, and a driver who cannot obtain coverage in the standard market may turn to the Colorado automobile insurance plan (the assigned-risk residual market).

Uninsured and underinsured motorist coverage

Here is a distinction Colorado agents must never blur:

• Uninsured Motorist (UM) protects you and your passengers when the at-fault driver carries no insurance or flees the scene (hit-and-run).
• Underinsured Motorist (UIM) handles the situation where the at-fault driver has insurance, just not enough to cover your injuries—it pays the difference between the other driver's lower limit and your UIM limit.

In Colorado these coverages must generally be offered to the applicant, who may reject or reduce them as the law and policy allow—verify the current offer and written-rejection requirements. The recurring theme: UM = no coverage; UIM = insufficient coverage, and both generally require the other driver to be at fault.

No PIP, plus the optional coverages

• Because Colorado repealed no-fault, there is no mandatory PIP. Medical Payments (Med Pay) is available as a first-party coverage that pays medical and funeral costs regardless of fault—verify how it must be offered.
• Collision and Comprehensive (Other Than Collision) are optional, though a lender will usually require them on a financed vehicle. Remember that damage from hitting an animal is Comprehensive, not Collision, and that racing/speed-contest losses are excluded.
• Optional rental reimbursement (transportation expense) pays a limited daily amount for a substitute vehicle while the covered auto is repaired after a covered loss, and the policy territory generally covers the U.S., its territories, and Canada.

Cancellation and nonrenewal notice

Colorado limits how and when an insurer can end a personal auto policy. An insurer that intends to cancel or nonrenew generally must provide advance written notice as required by law so the insured can shop for replacement coverage. Treat the specific timelines as figures to verify; expect a shorter window for nonpayment of premium and a longer window for other mid-term cancellations and for nonrenewal at the end of the term. After an insurer-initiated mid-term cancellation, unearned premium is generally refunded pro rata.

Required vs. optional coverages in Colorado

Key Colorado numbers to memorize

Common exam traps

• Colorado is at-fault, not no-fault—it repealed no-fault, so there is no mandatory PIP.
• 25/50/15—don't transpose the $15k property-damage figure into a bodily-injury slot.
• Modified comparative negligence: about 50% or more at fault means no recovery (verify the exact threshold and watch the wording).
• UM vs. UIM: UM applies when the other driver is uninsured; UIM applies when the other driver is underinsured.
• SR-22 is a filed certificate of financial responsibility, not a coverage or a policy.
• Hitting an animal is Comprehensive, not Collision.
• Supplementary/defense costs are paid in addition to the limit (national rule that still applies in Colorado).

Quick recap

• The PAP keeps its national Parts A–F structure; Colorado changes the limits and legal context.
• Colorado repealed no-fault and is a tort/at-fault state using modified comparative negligence, where a claimant about 50% or more at fault recovers nothing (verify).
• Financial-responsibility minimums are commonly cited as 25/50/15, with the SR-22 filing and the Colorado automobile insurance plan in the picture.
• Uninsured Motorist answers "no insurance"; Underinsured Motorist answers "not enough insurance"—both generally offered (verify rejection rules).
• Colorado has no mandatory PIP; Med Pay, Collision, and Comprehensive are optional.
• Cancellation and nonrenewal require advance written notice—verify the exact timelines.