Auto insurance is a type of insurance that is mandated by state law in Colorado. All drivers are required to carry minimum limits of at least $25,000/$50,000/$15,000. Most drivers should carry auto limits that are higher than the state requires due to the earning potential and assets of individuals. The state minimum insurance limits represent bodily injury maximums per person ($25,000) and per accident ($50,000). If you injure another person in a car accident and the medical bills, lost wages and pain and suffering exceed $25,000 in costs, YOU would likely be held personally liable for claims over your limits. With rising health care costs and increased litigation, $25,000 doesn’t go very far in a car accident.
Liability Insurance is the most important aspect of your auto insurance policy. Everytime you get behind the wheel, you are driving a potentially dangerous vehicle and as a result, you could be held personally liable for hundreds of thousands of dollars and even millions of dollars. It is important to be certain that your liability coverage is keeping up with your assets and earnings so that your assets and wages would not be siezed in the event of a bad accident.
Uninsured Motorist coverage not what most people think it is. Uninsured motorist does not pay out to uninsured motorists. Uninsured motorist coverage protects you from having to pay potential medical bills, loss of wages and pays you pain and suffering if an uninsured motorist causes you bodily injury. We recommend carrying the maximum amount of uninsured motorist, which is normally $1,250,000 in coverage.
Medical Payments coverage is always primary and pays all reasonable and customary expenses for necessary medical services furnished, up to the policy limits. All motorists in Colorado carry at least $5,000 in coverage, unless they waived the coverage. Our office is able to offer medical payments up to $50,000. If you do not have health insurance, it’s a good idea to consider carrying maximum medical payment limits. If you are injured in a car accident, your medical bills will add up quickly!
Collision Coverage pays for damage to your vehicle after hitting either a moving or stationary object. Collision coverage, when combined with comprehensive coverage, is what banks and financial institutions mean by “full coverage”.
Comprehensive Coverage pays to fix your car for almost everything else. Things covered by comprehensive are fire, explosion, theft, earthquake, vandalism, flood, hail and wind. The only type of collision claim paid for under the comprehensive coverage is colliding with a bird or an animal. Comprehensive coverage, when combined with collision coverage, is what banks and financial institutions mean by “full coverage”.
Glass Coverage is an important piece of any auto insurance policy in Colorado. Due to the snow and ice, CDOT lays gravel on our roadways during the winter months. In the Spring and Summer, these rocks begin to cause chips and cracks in windshields. Glass coverage will allow you to repair your windshield at no cost and if the chip has spread to a crack, you can replace your windshield at a lower deductible.
Rental Reimbursement is nice to have, but won’t usually wreck you financially if you don’t have it. If you rely on your vehicle to get to work or work and you have no other means of transportation, then you should have rental reimbursement. If you have more cars than drivers in your household, you work from home, or you can get by for a couple weeks without a car, then this may be an area to save.