Auto Insurance Basics You Need to Know
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
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.
Covers the vehicle and property damage you cause to any other drivers in an accident.
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.