Car, Auto and Vehicle Insurance Coverage Plans in Colorado

The requirements for auto insurance are location-based. In Colorado, car insurance for drivers is a must. The Colorado Department of Regulatory Agencies, through the Division of Insurance, is responsible for enforcing all regulations on auto insurance.

Up until 2003, the state of Colorado was “no-fault”. This meant that the cost of auto insurance was lower as small insurance claims were taken out of court. The insurance company was expected to compensate its policy-holders for minor injuries without considering who would be at fault. However, the law changed as a step to minimizing insurance premium costs and also to prevent abuse of claims.

Currently, car insurance in Colorado is a tort system. This means that fault has to be established before the insurance company pays for claims. So what insurance coverage plans does one need to ensure that he or she is covered and safe in Colorado?

Required insurance

It’s a requirement by law that drivers in Colorado have liability insurance. This covers the other car only and/or the driver if the accident is the first car’s driver’s fault.

The required car insurance in Colorado minimums for drivers are:

Bodily injury liability

This covers the expenses incurred by the injured or dead if the accident is your fault.

The minimum per person is $25000 for bodily injury.

The minimum per accident is $50000 for bodily injury.

Property damage liability

When the accident is your fault, this covers any expenses realized after the damage of property of another person including vehicles, buildings and homes among other structures.

The minimum per accident is $15000 for the damage of property.

All other insurance is optional.

Optional insurance

There’s also a variety of cover types that are optional in Colorado. They include:

  • Coverage for collision: Damages to one’s car caused when the car hits other objects (including cars) are covered under this type.
  • Comprehensive: Factors such as wildlife, theft and extreme weather which aren’t directly related to an accident. If the car is damaged the comprehensive coverage covers it.
  • Coverage for medical payments: The law requires that medical pay coverage be offered as part of any car insurance policy within Colorado. It’s offered in increasing amount of $1000 towards injuries caused by accidents. It’s however possible for one to opt out of the plan or purchase higher limits if they are offered by their insurance company.
  • Underinsured/uninsured motorist: In cases where one is involved in an accident and the driver does not have insurance or it is too little, this type of coverage covers the former.

Other optional car insurance coverages include:

  • Lease or loan gap coverage
  • Coverage for rental car
  • Towing or roadside assistance coverage

It is important to note that leasing and finance vendors will require one to have comprehensive and collision coverage on all financed vehicles.

What to consider before choosing an insurance cover

Before choosing an insurance cover for your car, it is important to consider some factors:

  • The type of insurance that is most convenient for you and the limits.
  • The benefits offered and how perfectly they meet your needs.
  • Special riders. These are the unique options available to your situation.
  • The costs of premium.
  • The company offering the coverage and the reputation.
  • The number of complaints received by the company over a certain period of time.

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Summary

To remain on the safe side of the law in Colorado, it is important to ensure one has all the required insurance covers. It’s also always important to know the type of insurance you need and read the fine print. This shields you in times of accidents and other related incidents.