Required Colorado Insurance

With the new laws that have been getting shuttled around by lawmakers, many are wondering where they stand with their auto insurance rights and needs. Many don’t understand how much auto insurance they are supposed to have, and what they can do to keep costs down. Some are opting not to take collision, or health insurance under their car insurance policies, but let’s take a look at what they do need.

It is mandatory for all Colorado drivers to carry Bodily Injury Liability Coverage. The minimum is $25,000 per person and $50,000 per accident, but you can always go higher. Many insurance companies try to get their insured’s to carry $100,000 and $300,000 respectively, but it is up to the individual as to what they want to carry.

PIP or Property Liability Coverage is also mandatory with a minimum of $15,000. This pays for property damages such as someone else’s car, street lamps, garage doors, etc. Collision, which pays for your car’s damage if it is in an accident, is not mandatory but recommended. It depends on the life of the car, if you are carrying auto insurance on a car that isn’t worth the piece of paper that says it is yours, you could eliminate this from your coverage and save yourself some money.

Comprehensive Coverage is optional, and covers your car for anything that happens that does not involve hitting another car. Things like hail, fire, flood, trees falling, earthquakes, etc. are all covered under comprehensive. Uninsured motorist coverage is also optional, but will come in handy if you are hit by someone who does not have any car insurance. Therefore your auto insurance company will pay for damages done to your car because the other driver is uninsured.

And finally, Medical Payments Coverage, which covers you and your passengers if you are in an accident. It does not matter who is to fault for the accident, you will be covered. It is optional, and most people choose to take on around $5,000 in coverage.

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