Car insurance rates have increased across the country since
2008. In Colorado, the average insurance premium rose 26% from 2008 to
2009. The good news is that states do not set insurance rates. There
are many factors that affect individual rates. By electing coverage, the
first place to look is on the individual needs of the state. This is the
minimum coverage for the state of Colorado.
Colorado is one of the many states that use a tort
system. This simply means that in case of an accident, a person must be
convicted. The guilty party is responsible for the damage caused by your
vehicle.
Therefore, according to Colorado law, it is required that every
car owner to maintain continuous coverage known as financial responsibility or
liability. This coverage allows you to cover the costs of damage caused by
your vehicle in case of accident. There are two ways to meet this
requirement in Colorado.
The most common way to meet this requirement is by purchasing a
standard liability insurance provider licensed to ensure Colorado. The
other option is auto insurance, but this option is only available if you own
multiple vehicles. You should contact the state DMV for more information
if you believe you qualify for auto insurance.
If you go the traditional route and buy a liability policy, make
sure you include the minimum values of the state. It's $ 25,000 for
bodily injury per person, $ 50,000 for bodily injury per accident and $ 15,000
property damage. In addition, from 2009, the state requires that medical
coverage for a minimum of $ 5,000. These limits may satisfy state law, but
may purchase additional coverage or increase these values, depending on their
individual needs.
Now that you know the minimum, you are free to choose additional
coverage that you can benefit. Depending on the value of the vehicle, you
may want to consider collision and / or comprehensive coverage.
Uninsured / underinsured motorist coverage is another type which
can be beneficial, but not required in Colorado. Also note that this type
of coverage may be required by your lender if you are making payments on the
vehicle.
