In Colorado, any driver at fault for an accident is financially responsible for the resulting costs. To ensure everyone can meet that responsibility, Colorado requires all drivers to carry a minimum level of insurance.
However, opting for the lowest level of coverage can leave people financially exposed when they cause an accident. That’s why exploring optional coverage tiers is always worth it.
Here, we’ll discuss Colorado auto insurance coverage types, requirements, and how they can help you post-accident:
Colorado Auto Insurance Requirements and Optional Coverage Types
Bodily Injury Liability (Mandatory)
Colorado drivers must carry bodily injury liability insurance with a minimum coverage of $25,000 per person and $50,000 per accident. This level of coverage ensures you can cover a significant portion of the injured party’s medical bills if you are at fault.
Medical Payments Coverage
This insurance type pays for medical bills for you and your passengers, even if you’re at fault. Though it’s similar to bodily injury liability, medical payments coverage is designed to cover more than $25,000. You can opt out of this coverage, but you must do so in writing.
Property Damage Liability (Mandatory)
Colorado auto insurance requirements dictate that drivers must have an insurance policy covering $15,000 worth of property damage. Property damage liability applies when you are at fault for a crash that damages another vehicle or other personal property, such as a fence.
Uninsured/Underinsured Motorist Insurance
Uninsured/Underinsured Motorist insurance is an optional yet highly recommended coverage type that compensates you for damage and injuries when the at-fault driver has inadequate insurance. This coverage is particularly valuable in Colorado, which ranks 9th in the nation for the highest number of uninsured drivers.
Comprehensive Coverage
Collision Coverage
If you’re involved in a crash, collision coverage will take care of your vehicle repair and replacement costs. You are not legally required to have collision coverage, but a bank may require it before approving you for financing.
Personal Liability Coverage (AKA Umbrella Coverage)
Personal liability coverage is a supplemental insurance tier that picks up costs beyond your primary coverage limits.
Choosing the right Colorado auto insurance coverage for your needs is an excellent way to limit your accident risk. We suggest reading through every policy available through your auto insurance company. It’s also important to closely review the insurance policy requirements, as most insurers require you to follow specific procedures after a crash.
Learn more about Colorado Auto Insurance Laws.
Your Duty to Your Insurance Company After a Crash
If you plan to file an insurance claim, you are required to notify your insurance company as soon as possible after an accident. This duty is listed in your insurance contract. Failing to report an accident can prevent you from receiving the benefits you pay for, even if you are current on your premiums.
Colorado Auto Accident Insurance FAQ
How can I determine what kind of auto accident insurance I should have in Colorado?
With all the Colorado auto insurance policies available, choosing the right one can feel impossible. That doesn’t have to be the case. If you ask yourself the following questions, you can easily find an affordable policy with the right level of coverage:
- Does the policy meet all Colorado auto insurance requirements? This is non-negotiable. If a policy doesn’t meet the bodily injury and property damage minimums listed above, you’re breaking the law every time you drive.
- Does the policy meet my bank’s/auto dealer’s requirements? If you are still paying off or leasing your vehicle, you may be required to have additional insurance coverage. For example, your lender will often request that you add collision coverage to your policy.
- What is my risk threshold? Your risk threshold is how comfortable you are with uncertainty. If you have a high risk threshold, you could go with the minimum required policy. Conversely, a comprehensive policy with umbrella coverage would be the best fit for anyone with a low risk threshold.
- What am I willing to pay each month? More coverage makes for a higher monthly premium. Opt for a lower level of coverage if you’re concerned about your monthly budget.
- How likely am I to get into an accident? If you are a very safe driver, you may consider a policy with lighter coverage. However, crashes are called accidents for a reason – no one expects to get into a collision. Weigh your confidence in your driving skills against the inherent risks of the road to get a feel for what you need.
Once you’ve answered all these questions, you should have a few policies and coverage levels in mind. Explore your selected coverage tiers with various auto insurance companies to settle on one that offers the best deal and the highest level of service.
Injured in a Car Accident? Call McDivitt Law
If you have been seriously injured in a car accident, call the experienced auto accident lawyers at McDivitt Law Firm. We’re well-versed in dealing with Colorado auto insurance companies and can help you file a personal injury claim to get the compensation you need.