Auto Insurance Basics You Need to Know

 In Auto Insurance, Blog, Colorado Car Safety, Insurance Claims, Liability Insurance

Discover the Basics of Auto Insurance and Protect Your Colorado Vehicle

Anyone who drives a vehicle needs auto insurance coverage not just to protect them against a potential accident and its consequences, but to drive legally in any state.

Mandatory Auto Insurance Coverage in Colorado

Every state has different minimum requirements for car insurance. Understanding what your state requires will make it easier for you to get the right type of coverage.

In Colorado, the bare minimum requirements for car insurance are:

  • $50,000 bodily injury liability for all persons per accident
  • $25,000 bodily injury liability per person
  • $15,000 property damage liability per accident

Colorado law requires you to carry proof of your car insurance in your vehicle and show it to a law enforcement officer if asked for it. A first offense will cost you $500 and the suspension of your license until you can show proof of your insurance. Subsequent offense fines will vary and may include hours of community service.

Basic Types of Auto Insurance Coverage

There are different types of auto insurance. These are the basic types usually included in most state’s minimum car insurance requirements.

Liability Coverage

Covers the vehicle and property damage you cause to any other drivers in an accident.

Don't drink and drive sign

Car insurance are vital when driving.

Bodily Liability Coverage

It is a different type of liability coverage. It covers the monetary cost of an injury —and even death—that results from an accident you cause. In practical terms, bodily liability coverage may include loss of income claims, medical bills, and pain and suffering damages. However, it will not cover any of your medical expenses.

Personal Injury Protection

It pays for your medical and funeral expenses that result from an accident, whether you caused it or not. It also covers the medical and funeral expenses of your passengers or any pedestrians you may hit.

Property Damage Liability

If you cause damage to someone else’s property, the property damage liability coverage will pay for that. It does not cover any costs to your vehicle.

Uninsured and Under-Insured Coverage

If your vehicle is damaged by someone who is under-insured or doesn’t have insurance of their own, this provision will cover you —liability and collision.

Other types of auto insurance coverage include:

  • Comprehensive insurance
  • Collision insurance
  • Rental reimbursement coverage
  • Towing and labor coverage
  • Gap auto insurance
  • Medical coverage

Auto insurance is a necessity. Talk to your insurance agent to find what works best for you.

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