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How to Pick the Best Car Insurance

Posted in on July 5, 2018

Choosing the right car insurance is an important decision for any driver. In Colorado, carrying car insurance is mandatory. However, you only have to have a few basic types of insurance. Other types of coverage are optional.

To fully protect your interests, you may need more than the minimum insurance. But how do you know what you need? What car insurance coverage do you need to protect yourself and your family? Here’s what you need to know about choosing the right car insurance from our Denver car accident attorneys.

What Is Recommended for Car Insurance Coverage?

At a minimum, bodily injury, property damage, and uninsured/underinsured motorist coverage are recommended for car insurance coverage. It’s also recommended that you purchase more than the minimum amounts for bodily injury.

You must comply with state laws for minimum insurance coverage, but it’s also recommended to have extra amounts to cover bodily injury for more serious accidents. You should also have uninsured motorist coverage in the event that the other driver doesn’t have insurance.

How Much Bodily Injury Insurance Do I Need?

You need enough bodily injury insurance to protect your assets. For most people, that’s at least $250,000. If you have minimal assets, and there’s nothing for someone to take if they bring a lawsuit against you, it might be okay to carry on the state minimum amount.

However, if you have even modest assets of a few thousand dollars, having only the minimum bodily injury insurance puts your assets at risk. You need enough bodily insurance to protect yourself if a more serious accident occurs. Most people need at least $250,000 in bodily injury insurance.

How Do I Choose Car Insurance Coverage?

You choose car insurance coverage by learning about the different types of car insurance, including bodily injury, property damage, uninsured/underinsured, collision, comprehensive, and gap coverage.

Evaluate the assets that you want to protect and the amount that you can afford to pay. Consider different coverage levels and the types of coverage. Compare rates and reviews from different insurance companies to make your final choice.

Choosing the Right Car Insurance in Colorado

To choose the right car insurance, it’s essential to understand the different types of car insurance. Car insurance isn’t just a blanket insurance policy that covers any kind of damage to your vehicle. Instead, there are a lot of different types of car insurance that include various types of damages. To purchase the right car insurance, you have to know what each type of insurance is and whether you need it.

Bodily injury – Bodily injury insurance coverage is a must. The only question is how much you need to have. In the state of Colorado, you need to have at least $25,000 per person and $50,000 per accident in bodily insurance coverage in case you’re at fault for an accident. However, if you have any kind of savings or assets, you should have more than the minimum amount. Medical bills from a car accident can be expensive. $25,000 isn’t enough to cover any severe injury. If you can afford it, you should have at least $250,000 in bodily insurance coverage.

Property damage – You must also have insurance that pays if you cause damage to another vehicle. The minimum requirement for property damage in the State of Colorado is $15,000. Some cars are worth more than that, though, and a crash might involve multiple vehicles, so you might want more if you can afford it. However, meeting the $15,000 minimum for property damage is an integral part of buying the right car insurance.

Uninsured/underinsured – Your bodily injury and property damage insurance only pays the other party if you’re responsible for an accident. But these types of insurance don’t pay you if the other party is at fault for the accident. If the other party is at fault for the accident, they should pay you out of their insurance. But what if they don’t have insurance? What if they don’t have enough insurance?

Uninsured motorist coverage is insurance that pays you when you’re not at fault, but the other party can’t meet their obligations. You should have uninsured/underinsured motorist coverage in all cases. Typically, you can buy a policy limit up to the same limit as your bodily injury coverage. Buy as much as you can afford.

Collision – Collision coverage pays you just for vehicle damage to your own vehicle. Whether or not you need collision coverage depends on the value of your vehicle. If your vehicle isn’t expensive, and you’re okay with taking it as a loss if you’re in an accident, you can get by without collision coverage. However, if you’re going to need financial assistance to replace your vehicle when you’re in an accident, you should get collision coverage.

Comprehensive – Comprehensive coverage pays for damage that isn’t related to an accident. It covers a tree falling on your car, for example. Like collision coverage, you should get comprehensive coverage if you can’t risk something happening to your vehicle.

Gap coverage – If you lease your vehicle, gap coverage may be a requirement. Gap coverage makes up the difference between the value of the vehicle and the total of your vehicle loan. You must comply with any leasing requirements to have gap coverage.

Does Colorado Require Car Insurance?

Yes, Colorado requires car insurance [1]. All drivers must carry the state-required minimums for car insurance. The state minimums are $25,000 per person for bodily injury liability, $50,000 per accident total for bodily injury, and $15,000 for property damage. You may choose to carry additional amounts or different types of insurance.

What Is Considered Full Coverage Auto Insurance in Colorado?

Full coverage auto insurance in Colorado is considered insurance that complies with state minimums along with additional amounts for uninsured motorists and comprehensive coverage.

The state minimum insurance amounts are not regarded as full coverage auto insurance in Colorado. That’s because the law doesn’t require a driver to carry uninsured/underinsured motorist coverage. There’s also no comprehensive requirement that covers losses that are not related to accidents.

Contact Our Denver Car Accident Attorneys

Have you been in a car accident? Contact our Denver can accident attorneys for a free consultation.

Sources

[1] Colorado General Assembly. Mandatory Automobile Insurance in Colorado. Retrieved 03 October 2019 from https://leg.colorado.gov/content/mandatory-automobile-insurance-colorado

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Super Lawyers - Kyle Bachus
Million Dollar Advocates Forum
Martindale-Hubbell Peer Rated for Highest Level of Professional Excellence
Super Lawyers - Darin Schanker
The National Trial Lawyers Top 100 Trial Lawyer
5280 Top Lawyers of Denver