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| Colorado Auto Insurance |
Each state has its own rules and regulations regarding auto insurance. Someone who lives in this state or is moving to this state or is just starting to drive, needs to review what the law mandates for you. When considering buying a policy, also think about the area where you live.
Colorado is known for its rocky terrain and steep mountains and hills, and very slippery roads. This makes accidents in this area much more severe compared to other states with flatter terrain. These are all factors to consider when deciding which type of coverage is right for you.
What am I required by law to have on my insurance policy?
In the state of Colorado, anyone who drives a vehicle must have a minimum of $25,000 liability coverage for bodily injury and $50,000 per accident. Bodily injury is when you are guilty of harming another human being if you are involved in an accident.
This isn't much at all as most insurance brokers suggest you get $100,000 to $300,000 for a full-blown accident. Roads can be very dangerous and if someone is seriously injured, you could be paying damages and lawsuits for the rest of your life and using up all your savings, or even giving up your house, for one mistake on the road. Calculate well what options you have and which assets you want to protect.
The minimum liability for property damage is equal to $15,000. This is when you damage someone else's property such as a house, shop, pole line, building, or other physical property.
In summary, the state laws and regulations in the state of Colorado for auto insurance of Minimum Liability Coverage are as follows:
Bodily Injury $50,000 per accident
Property Damage $15,000
In the State of Colorado, insurance companies are required to offer you Uninsured or Under insured Drivers, commonly referred to as UM or IM. The minimum requirement for this insurance is $25,000 to $50,000. If you are involved in an accident and the other person does not have insurance or their insurance will not cover the costs and damage to your vehicle. This insurance also covers medical expenses which can be very expensive.
Insurers are also required to offer collision liability insurance and comprehensive auto insurance. A collision is when damage is done to your vehicle even if you are at fault you will be covered. Comprehensive insurance is in case your car is stolen or damaged by natural causes or other factors such as fire, storm, wind, hail, tree, flood, earthquake, tornado, or animal hitting it. Definitely a factor to consider in this Rocky Mountain State.
There is a law in Colorado that if a driver who lives under the same roof drives a car and is in a car accident, he or she may not be covered or excluded from coverage. Check carefully with your insurance agent and make sure everyone and anyone driving the car is covered at all times.
Colorado is a Tort State which means, the driver causing the accident must pay all medical expenses and the victim can suture and file a claim for additional wages if deemed necessary. Most insurance companies recommend that you purchase more than the minimum requirement to be fully covered.
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