Owning a motor vehicle can come with a lot of responsibility. It can also be expensive – especially if you are to get into an accident, regardless of whose fault it may be. To protect yourself both financially and legally, it is a good idea to carry auto insurance coverage. It is also required – at least for a minimum amount – by the state of Colorado.
While many people do not like having to pay their auto insurance premiums, the truth is that not having this type of coverage can be much more expensive – especially if you were to get into an accident. And, a more serious event could end up costing hundreds of thousands – or even millions – of dollars, if there are medical and / or legal expenses involved. Here at Longevity Insurance Brokers we are here to make sure you have the coverage you need.
What are the Vehicle Coverage Requirements in the State of Colorado?
Based on the laws for auto insurance for Denver, CO, vehicle owners are required to have certain types of vehicle insurance with minimum limits of liability. For example, in this state, it is required by the state law that auto insurance policies include the following concerning liability coverage:
Bodily Injury Liability Coverage
In Colorado, an auto insurance policy must carry bodily injury liability or BI. This is the type of auto insurance coverage that provides protection to an insured if the vehicle owner causes an accident that results in injury and / or death to another party.
The state of Colorado requires that an auto owner have at least the amount of $25,000 per person for bodily injury. Vehicle owners in Colorado must also have at least $50,000 per accident. These limits would be expressed simply as 25 / 50.
While these amounts are the minimum for the state of Colorado, it is important for vehicle owners to realize that their personal situation may dictate what they should obtain. For example, if you have a great deal of personal assets to protect, then it may be that you should purchase higher limits than these stated amounts.
Property Damage Liability Coverage
Concerning other types of auto insurance coverage, property damage liability covers an auto insurance owner when the damage that is done happens to another individual’s property. This typically happens when the “property” is another individual’s vehicle. However, the other property could also refer to a building, a structure, or item.
In the state of Colorado, there is a minimum requirement for property damage liability coverage, too. This amount is set at $15,000 per occurrence. However, just as with the bodily injury liability coverage minimum limit, it is up to the individual to determine how much more he or she may need to purchase, based on the amount of personal assets that may need to be protected.
Uninsured / Underinsured Motorist Coverage
Today, even with the requirement to purchase auto insurance, there are still some vehicle owners who do not have coverage, or who do not have enough. Therefore, there is uninsured / underinsured motorist coverage.
This type of protection provides insurance coverage for medical, as well as for other costs if a motorist is hit by a driver who does not have coverage, or who does not carry the proper amount of coverage for their needs.
In the state of Colorado, an insurance company is required to offer uninsured / underinsured motorist coverage. The amount that is required to be offered is the same as the bodily injury liability limits that a vehicle owner has purchased. The insured does, however, have the option to waive the coverage – provided that they do so in writing.
As with some other types of auto insurance, there is a minimum limit about uninsured / underinsured motorist coverage. These limits are of $25,000 / $50,000. These are in line with the minimum liability limits.
Even though it is allowable for an individual to waive the uninsured / underinsured motorist coverage, it is not always such a good idea to do so. This is because this type of coverage can help an insured to pay for vehicle damages. It can also help to pay for other items such as medical expenses.
Medical Payments (Med Pay) Coverage
Medical payments – also known as Med Pay – coverage must also be offered to Colorado vehicle owners. The amount of coverage that must be offered is $5,000. This is the case, regardless of whether the inured is applying for brand new coverage, or they are just renewing a policy. This coverage can also be opted out of, just as with uninsured / underinsured motorist coverage.
Collision Insurance Coverage
Another type of auto insurance that a Colorado driver may have is collision insurance. This type of coverage may help if or when a driver hits another vehicle, or if the individual drives into an object such as a building or even a tree.
When an individual owns this type of auto insurance protection, there will often be a deductible. The amount of this deductible may range anywhere from $0 to $1,000. This amount must be paid by the insured out-of-pocket before any of the insurance will be paid on the claim.
While the state of Colorado does not require drivers to carry collision insurance coverage, a bank or a lender may require that a person have it if they are borrowing money for an automobile loan.
Comprehensive Insurance Coverage
Comprehensive insurance coverage can help a person if their vehicle is stolen. It can also be of benefit if a vehicle becomes damaged in a manner other than in a collision. This, for instance, could occur if the vehicle is damaged in a hail storm, in a fire, in a flood, or even if it is damaged due to an encounter with a wild animal.
While comprehensive insurance is not a requirement by the state of Colorado, it may be required by a bank or a lender to obtain a loan for an automobile. As with collision auto insurance, a comprehensive auto insurance policy may also have a certain amount of deductible that must be paid out before any of the insurance benefits will be paid on a claim.
How to Choose the Best Auto Insurance in Denver
Choosing the right liability auto insurance coverage in Denver, CO, may be different than it would be in another state. This is because vehicle insurance requirements can vary from state to state – so it is important that drivers not assume that coverage is all the same across the nation.
With this in mind, it is a good idea to be aware of just exactly what the requirements are in the state where you reside – as well as which types of protection are required to be carried. Likewise, if a certain type of auto insurance isn’t required by the state, it may still be a good idea to have so that you can protect your personal assets and financial situation in the case of an accident – and a potential lawsuit.
When shopping for just the right auto insurance policy – especially when it comes to liability auto insurance coverage – it is important to compare plans wisely. When doing so, be sure that you compare apples to apples. You should also ensure that the auto insurer that you purchase from is strong and stable financially and that it has a good reputation for paying out its policyholder claims.
One of the best ways to find out how strong an insurance company is can be through the grades it is given by the ratings agencies such as A.M. Best, Moody’s, Fitch, and Standard & Poor’s. Typically, if an insurer has a grade of an “A” or better, it is considered to be financially strong.
Where to Find the Right Liability Auto Insurance in Denver, CO
When you are seeking the right liability auto insurance coverage in Denver, CO – or anywhere in the U.S. – it is important that you work with either an agency or a company that has access to more than just one auto insurance carrier. That way, you will be able to compare, in an unbiased manner, the policies, benefits, and the premium quotes that you may be eligible for, and from there you can determine which one will be the best for you.
If you are in the market for a new or updated liability auto insurance policy, we can help. We work with many of the top auto insurers in Colorado, and we can assist you with the information that you need. For additional details, just fill out the form on this page.
Should you have any additional questions, we can be reached directly via phone, toll-free, by calling 720-209-4598. We know that buying insurance whether it be auto, life or homeowners insurance in Denver, Colorado, can be somewhat confusing, but we can walk you through the process and ensure that you are on the right track with what you need. So, contact us today – we’re here to help.