If you own a motor vehicle in Denver, CO, then you may already be familiar with the fact that you need to have at least a minimum amount of auto insurance coverage. While you may not like paying this insurance premium, the ramifications of not having this important protection could be much costlier to you regarding potential penalties, fines, and court costs, as well as having your license suspended, or even revoked, depending on the particular situation.
This is because if you happen to be involved in an accident or other type of traffic violation, and you do not have auto insurance coverage, you could run the risk of having to pay for your – and someone else’s – auto repairs, as well as medical expenses, hospital bills, legal fees, and more. These could potentially run into the six, or even the seven, figures. Here at LongevityBrokers.com we are here to help you find the best coverage for your needs.
What are the Auto Insurance Requirements in the State of Colorado?
According to the law in Colorado, as with most other U.S. states, vehicle owners must have certain types of auto insurance coverage that have minimum limits of liability. There are also many insurance companies that will recommend that a vehicle owner carry a certain limit on this type of protection.
Regarding car insurance in Denver, CO, it is required by state law that auto insurance policies carry the following in terms of liability coverage:
Bodily Injury Liability Coverage
For Colorado auto insurance policies, the bodily injury liability – also referred to simply as BI – coverage provides insurance protection to individuals if a vehicle owner causes an accident that injures or kills another person or persons.
The state of Colorado requires that vehicle owners carry a minimum limit of this type of coverage in the amount of $25,000 per person for bodily injury, and a minimum of$50,000 per accident for bodily injury. This would be expressed as 25 / 50.
These amounts, however, are just the state’s minimum requirements. As a vehicle owner, it will be important when determining the amount of coverage that is right for you, to consider the amount of assets that you have to protect. In many cases, an individual may require more than just the state’s minimum amount of bodily injury liability coverage to be adequately protected.
Property Damage Liability Coverage
There are other types of auto insurance protection as well. For example, property damage liability covers a vehicle owner when the damage that is done occurs to someone else’s property.
This is usually referred to when the property is another individual’s vehicle. However, it can also be a structure or other physical item. In Colorado, there is also a minimum requirement for property damage liability coverage. This amount is $15,000 per occurrence. As with bodily injury liability coverage, however, the minimum required amount of coverage may or may not be enough to adequately cover all drivers in the state of Colorado.
Uninsured / Underinsured Motorist Coverage
Uninsured / underinsured motorist coverage provides coverage for medical, as well as other expenses when a vehicle owner is hit by a driver who has no auto insurance, or who does not have the proper amount of coverage for their needs.
In Colorado, insurance carriers are required to offer this type of coverage in the same amount as the bodily injury liability limits that a vehicle owner has purchased. A driver does, however, have the option to waive uninsured / underinsured motorist coverage, as long as they do so in writing.
There are minimum limits for uninsured / underinsured motorist coverage in the state of Colorado. These are $25,000 / $50,000 – which are the same as the limits for the minimum liability limits. While uninsured / underinsured motorist coverage can be waived, it is a good idea to have this type of protection as it can not only help in paying for vehicle damages but also for medical costs.
Medical Payments (Med Pay) Coverage
The coverage that is referred to as Medical Payments, or Med Pay, is a relatively newer requirement in Colorado. Drivers must be offered the amount of $5,000 in Med Pay coverage, regardless of whether they are applying for new auto insurance coverage, or they are simply renewing a current policy. With Med Pay, a driver is allowed to opt out.
Collision Insurance Coverage
Collision insurance coverage is another type of auto protection that drivers in Colorado may have. With collision auto insurance, coverage is provided when a vehicle owner hits another vehicle, or if an object such as a tree or a building is hit.
When a person has collision coverage, there is often a deductible involved. This deductible – typically anywhere between $0 and $1,000 – must first be paid out-of-pocket by the insured before any of the insurance claim will be paid by the insurance company.
Although it is not required in the state of Colorado itself to have collision auto insurance coverage, it could be required by a bank or a lender in order for an individual to obtain an auto loan.
Comprehensive Insurance Coverage
When a person has comprehensive insurance coverage, they may obtain benefits if their vehicle gets stolen or damaged in a manner that does not involve a collision. As an example, covered risks can include damage due to fire, flooding, and hail, as well as due to having an encounter with an animal such as a deer. It can also include damage due to theft.
Comprehensive auto insurance coverage in the state of Colorado is not required. However, it may be a requirement by a bank or a lender to obtain an auto loan. This type of auto insurance coverage will also usually have some amount of a deductible that must first be paid by the policyholder before the benefits will be paid out.
How to Choose the Right Auto Insurance Coverage in Denver
Choosing the right collision auto insurance in Denver, CO, may be different than it will be in another state. This is because auto insurance requirements can differ from one state to another. With that in mind, it is important to know what the legal minimum requirements are in the state where you live – and, which type of auto insurance are even required for you to carry at all.
Likewise, even if certain types of auto insurance are not required for you to carry, it will be essential to understand the ramifications of how costly it could be not to have this protection – as going uninsured could end up costing you a great deal more.
When you are shopping for the right collision auto insurance in Denver, CO – or anywhere that you may reside – be sure that you are comparing apples to apples on policy benefits and features. That way, you will be able to obtain the most accurate premium quote comparisons so that you can choose the plan that is best for you, and for your budget.
It is also important to note that when shopping for car insurance coverage, the policy that has the lowest premium rates may not always be the very best. Therefore, be sure that you do a thorough review of the underlying insurance carrier before moving forward with the purchase of a policy.
For example, make sure that the carrier is highly rated by the insurer rating agencies such as Standard & Poor’s, A.M. Best, Moody’s, and Fitch. Companies with ratings of A or better are usually considered to be financially stable – which can help you to ensure that they are more apt to pay out their claims promptly.
Where to Find the Right Collision Auto Insurance Coverage in Denver, CO
Finding the right collision auto insurance in Denver, CO, can be easy if you are working with the right company or agency. If you are ready to move forward with the purchase of a new policy, we can help. We work with many of the top auto insurers in the marketplace, and we can help you in finding the best coverage at the lowest auto insurance rates. In order to help in comparing the best rates to fit your auto insurance needs, all you need to do to get the process started is just fill out the form on this page.
Should you find that you still have any questions at all regarding collision auto insurance – or even if you just have a question about insurance in general, whether it be auto, life, or home insurance in Denver – please feel free to contact us directly. Our experts are here to assist you. We can be reached toll-free by dialing 720-209-4598.
We know that shopping for auto insurance can seem somewhat confusing. There are a lot of variables to keep in mind – and you want to ensure that you have all of the required coverage that you need. The good news is that you have an ally on your side when it comes to coverage and great rates. So, contact us today – we’re here to help.