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Colorado Car Insurance Coverage

Are you looking to buy car insurance coverage in Colorado? Then you'll want to know about all the types of coverage available there and the circumstances under which you might need that coverage. While purchasing automobile insurance in CO is actually easy and straightforward, it can seem confusing at first because there are so many types of insurance available and they're not always explained very well.

Required Auto Insurance in Colorado

Colorado requires that all drivers have liability insurance in order to register their vehicles and drive legally on the state's roads. Liability insurance specifically covers the costs incurred by other people injured or suffering a loss of property in an accident the insured driver causes. It does not, however, cover any of that driver's own costs. He must carry other types of insurance if he wants to be sure that his costs will be covered.

Liability insurance comes in two types in CO. Bodily injury liability insurance covers costs related to any physical injuries or deaths sustained in the accident. These costs include but are not limited to: medical bills, lost wages, funeral costs, and pain and suffering costs. Colorado requires that each driver carry a minimum of $25,000 for any one person injured or killed in an accident and at least $50,000 for more than one person injured or killed in the same accident.

The second type of liability insurance is property damage liability insurance. It covers costs related to property damaged in an accident. Usually, the property damaged is another vehicle, but this insurance will also cover damage to fences, signage, landscaping, or any other sorts of property that suffers because of the accident. Colorado state law requires that every driver carry at least $15,000 worth of this type of coverage per accident they cause.

Note that these are only minimum amounts of these types of insurance. If you are in a serious accident and are deemed to have caused it, the actual costs of medical bills, funeral expenses, lost wages, and damaged property can soar well beyond these minimal amounts of insurance. However, if you only carry the required insurance minimums, you can be held personally responsible for any costs that your insurance does not pay. Thus, it can be a good choice to obtain liability insurance above and beyond Colorado's required minimums.

Other Types of Car Insurance Coverage in Colorado

Colorado requires all auto insurance companies to offer you at least $5,000 of medical payments insurance coverage with every policy they sell. This type of automobile insurance covers medical payments for the injured driver who holds the policy, whether or not he is determined to have caused the accident. Thus, having this kind of insurance can save you headaches over medical bills.

Note that, while $5,000 is the minimum amount you can purchase this insurance for in CO, it is available in higher amounts, too. If you are concerned about medical bills you might incur in case of an accident, you might want to pursue even more coverage under this kind of insurance. If you want to refuse this type of insurance in Colorado, you must do so in writing.

Similarly, Colorado state law requires all insurance companies to offer uninsured/underinsured motorist coverage with every vehicle insurance policy they sell. This type of auto insurance will cover your medical and property damage costs if you are the victim in an accident that is determined to be the fault of another driver, and that driver either does not carry auto insurance or does not carry enough to cover the damages done to you. Generally, you purchase this type of insurance in the same amounts of your bodily injury and property damage liability insurance. Again, you must decline this insurance in writing if you choose to do so.

Most insurance companies in Colorado also offer collision coverage. This automobile insurance will cover damages that your vehicle sustains in a crash even if the accident is your fault. This includes accidents where no other vehicles are involved, such as collisions with a brick wall or a mailbox. If you are particularly accident prone in your vehicle or you have a new vehicle that you could not afford to replace if it was damaged beyond repair in an accident, collision coverage can give you peace of mind.

In addition, many drivers in CO carry comprehensive coverage. This car insurance will cover damages done to your car that do not involve an accident. This includes damages caused by so-called acts of God, like tornadoes, hail storms, and other natural disasters. It can also cover damage caused by vandalism or will replace your car if it gets stolen. While many of these things may seem relatively unlikely to occur, if you have a newer vehicle or could not afford to fix or replace your vehicle if something did happen, comprehensive coverage can help you feel more safe and secure with your vehicle.

If you are making payments on your car, you will probably be required to carry both collision and comprehensive coverage, in order to protect the interests of the lending agency. Be sure to check your loan contract or contact your lending company if you have any questions. If you do not carry the insurance they require of you, Colorado gives them full authority to carry out the consequences spelled out in your contract, which can range from rescinding the loan to purchasing the auto insurance in your name and billing you for it. While this might seem more convenient, these companies will not look for the best prices so you could end up paying a lot more for your coverage than you need to.

Purchasing Auto Insurance Coverage

When deciding what auto insurance coverage you need, it is important to make sure you do not purchase more insurance than you can afford. Automobile insurance is definitely a good thing, and required in certain types and amounts, but it is not something that is worth going into debt for. Thus, it's important that you assess your financial situation before you look for automobile insurance quotes or talk to a company, so you know how much you can spend.

If you have the funds available, then determine what sorts of insurance would be best for you and your family. Some drivers prefer to only carry minimal coverage, while others like to make sure their bases are all covered by purchasing as much insurance as they can afford. To figure out what works for you, determine your auto insurance priorities and stick with them when talking to an auto insurance company, agent, or broker.

Now that you're educated about the types of car insurance available in Colorado, you can make intelligent choices about which types and amounts of insurance will work best for you and your family. Be sure to use your knowledge wisely, not only when you're thinking about what insurance to purchase but also in your dealing with car insurance companies. Be sure to ask them any questions you may have, particularly if they're pressuring you to purchase insurance you don't think you need.



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