Colorado Car Insurance: An EZ Guide

There are a multitude of car insurance options for Colorado drivers that can catch them up and suck them under if they are not prepared when walking into a deal. Complete information abut all aspects of Colorado’s insurance requirements can be obtained by visiting the Colorado Division of Insurance located in Denver at http://www.dora.state.co.us or by contacting them at 1-800-930-3745.

CO is a bit different from many of the other states in that it is a no fault state. What that means is that its drivers’ expenses, both medical and vehicle repair, will be paid by their own insurance companies regardless of who was at fault in an accident. This was intended to minimize the number of lawsuits pressed each year and keep policy premiums low. There are limits to Colorado’s no fault policy, however; if an injury is determined severe enough or damages and expenses exceed a certain limit the other driver may be brought into court and found responsible for some or all of the costs incurred.

These exceptions to the rule mean that Colorado drivers are also required to carry a liability policy. Liability will cover those expenses for which the driver is deemed responsible. Minimum levels of liability in CO are twenty five thousand dollars for the medical expenses and vehicle repair costs incurred by a vehicle that is struck containing a single occupant, fifty thousand dollars for the combined expenses of all involved in the event the vehicle contained more than one occupant and fifteen thousand dollars to cover the cost of other property damage inflicted, such as the destruction of a mailbox or toppling of a light pole.

PIP, or personal injury protection, is required as well. This will help pay for the medical expenses of the insured after an accident; those in possession of a comprehensive medical insurance policy may choose to carry only the minimum level of PIP coverage.

Comprehensive/collision coverage is not required by state law but is recommended. This will pay for damages to the vehicle should the insured be responsible for an accident. Collision coverage will also pay for damages incurred due to inclement weather or wildlife, circumstances over which the driver has no control. Uninsured or underinsured motorist coverage is also recommended (but not required) in the event that a driver is the victim of a hit and run or is struck by a motorist not carrying a liability policy or whose level of liability is less than the costs incurred by the accident.