While shopping for auto insurance can be somewhat time-consuming, if you get caught driving without the proper vehicle coverage, the penalties can often be quite steep. These can include a monetary fine, a suspension of your driver’s license, and possibly even worse – depending on the particular offense.
Being involved in an accident without auto insurance coverage can also be extremely costly. Not only would the vehicle owner be at risk for having to pay for damages to his or her car, but they could also be liable for medical expenses, as well as potentially liable for legal costs if they were to be sued. In some cases, these could range into the hundreds of thousands – or even into the millions of dollars. With that said, we at Longevity Brokers are here to help make sure that you are fully covered.
Auto Insurance Requirements in Colorado
As a matter of law, it is required in most states, that vehicle owners have certain types of automobile insurance coverage that have minimum limits of liability. Many insurance carriers will also recommend certain limits on such coverage.
For Denver auto insurance, the law requires that an auto insurance policy have the following coverage:
Bodily Injury Liability Coverage
On an auto insurance policy, the bodily injury liability, or BI, coverage will cover an individual if the vehicle owner causes an accident where another individual is injured or killed. There are many financial professionals in the state of Colorado that recommend vehicle owners carry a minimum of $100,000 per person regarding liability and $300,000 per occurrence. This is typically expressed as 100 / 300. When determining how much to purchase on a Colorado auto insurance policy, it will be important to consider the amount of assets that you have to protect.
As far as the state’s actual requirements, Colorado requires that a vehicle owner carry a limit of $25,000 per person for bodily injury, and a minimum of $50,000 per accident for bodily injury. This is typically expressed as 25 / 50.
Property Damage Liability
Property damage liability will cover a vehicle owner when damage is done to somebody else’s property. This is typically referred to if the property is another individual’s vehicle. However, it may also refer to a building and / or other types of physical property. In the state of Colorado, the minimum limit on this type of coverage is $15,000 per occurrence.
Uninsured / Underinsured Motorist Coverage
Uninsured / underinsured motorist coverage will cover the medical and other costs when a vehicle owner is hit by a driver who either has no auto insurance coverage or who does not have an adequate amount of insurance coverage.
In the state of Colorado, an insurer is required to offer Uninsured / Underinsured Motorist coverage in the same amount as the bodily injury liability limits that an individual insured has selected. However, this type of coverage may be waived, provided that it has been rejected in writing by the insured.
The limits for this type of coverage start at $25,000 / $50,000 – which are the same as the state of Colorado’s minimum liability auto insurance limits. Although this coverage can be waived, there are many individuals who choose to include it on their auto insurance coverage in Colorado. This is because it can help with covering costs such as medical expenses, too.
Medical Payments Coverage
Medical Payments Coverage, or Med Pay, is a type of coverage that is required to be offered as of 2009 in the state of Colorado. Insurance carriers are required to offer drivers $5,000 in coverage for this type of coverage – and a driver must opt out if he or she does not wish to have it included in their policy. This is the case regardless of whether an individual is purchasing a new auto insurance policy or they are renewing a current plan.
Collision Insurance Coverage
Drivers in the state of Colorado will also typically have collision coverage on their vehicles. This type of vehicle insurance will cover the damage that is done to your auto if you hit another vehicle, or if you hit an object such as a tree or a wall.
While collision coverage is not required by the state, it may be required by a lender if a person has an auto loan. Often, there will be a deductible on collision coverage, such as $250 or $500. This is the amount of money that the insured will first need to pay out-of-pocket before the insurance benefits will start to pay on a claim.
Comprehensive Insurance Coverage
Comprehensive auto insurance coverage will provide benefits if a person’s vehicle is stolen or damaged in a way that does not involve a collision. For example, a covered risk can include damage via theft, hail, flood, fire, or even through an encounter with a wild animal such as a deer.
Having comprehensive auto insurance coverage in Colorado is also optional. Here again, though, a lender or bank that has loaned money for the purchase of a car may require that the borrower have this type of insurance coverage. And, like collision coverage, comprehensive coverage will also have a deductible.
How to Choose Your Auto Insurance Coverage in Denver, CO
Not all states are identical in their auto insurance requirements. Therefore, if you need to have auto insurance coverage in Denver, CO – or anywhere in the United States – it will be important that you know exactly what the requirements will be for that area before moving forward with the purchase of your vehicle insurance policy.
Once you know what the requirements are in your state, you will also want to ideally compare several policies side-by-side. This is because the cost of comprehensive auto insurance coverage can vary a great deal from one insurance carrier to another – even for the very same benefits.
With that in mind, when you are shopping for your auto insurance, it is oftentimes best to ensure that you are working with an independent brokerage or agency that has access to multiple auto insurers – and that will help you in making a direct comparison. That way, you will be able to see the vast difference in premium prices, as well as how much you will be able to save by going with one company over another. This is especially the case if you plan to keep your policy for a long period.
Comparing policies can also help you in deciding on your benefit mix. For example, by raising or lowering your deductible, your premium will be affected. You could also make other changes, too, such as paying annually instead of monthly, which can lower your premium cost.
It is important to keep in mind that the cheapest auto insurance coverage is not necessarily always going to be the best. When considering what the best auto insurance policy will be for your specific situation, you should review not just the policy and the premium, but also the insurance carrier.
This should entail making sure that the insurance company is strong and stable from a financial standpoint, and that it has a good reputation for paying out its claims to its policyholders. One of the best ways to do this is to check the insurer’s ratings through the insurer rating agencies such as A.M. Best and Company, Standard & Poor’s, Moody’s, and Fitch. Typically, a company that has a rating of an A or better will be indicative that the insurer is financially strong and that it pays out its claims.
How and Where to Find the Best Comprehensive Auto Insurance Premium Rates
Finding the best comprehensive auto insurance premium rates – as well as the best rates on all types of auto insurance coverage – can typically be done by working with an independent agency or broker. In going that route, we can help. We work with many of the top auto insurers that are in the marketplace, and we can assist you in obtaining all of the auto insurance information that you will require for making a well-informed purchasing decision. When you are ready to move forward, all you need to do is just simply fill out the form on this page.
Should you find that you still have any questions regarding comprehensive auto insurance coverage in Denver, CO – or even if you just happen to have a question about insurance in general, whether it be for life, auto or homeowners insurance in Denver – please feel free to contact us directly. We can be reached via phone, toll-free, by dialing 720-209-4598.
We understand that finding the very best comprehensive auto insurance coverage in Denver, CO, may be difficult. There are many options that are out there – and it can be somewhat confusing trying to narrow down just exactly which one will be right for you.
But having an ally on your side can often help you to compare in an unbiased manner the benefits, the prices, and the carrier that will work the best for your specific requirements. So, when you are ready to compare, contact us – we’re here to help.