The Facts - The Basics of Colorado Auto Insurance
Colorado Auto Insurance Requirements: Few Today, But What About Tomorrow?
Bodily Injury and Property Damage Liability (BI and PD)
Liability covers the damage and injury you cause to others in the event you cause a crash. Each state requires that you have certain types of coverage with minimum liability limits. Many insurers recommend that your bodily injury liability limits be at least $100,000 per person and $300,000 per occurrence. Minimum required :
- $25,000 per person for bodily injury, $50,000 per accident
for bodily injury and - $15,000 per accident for property damage.
Uninsured/underinsured motorist coverage (UM/UIM)
By law, this coverage must be offered on your policy in an amount equal to your liability limits and can only be waived if you reject it in writing when you purchase an auto policy. It protects you if you are hit by an uninsured or underinsured motorist.
Colorado Optional Coverage: The Special Interests are Very Interested
Medical Payments Coverage (MP or MPC)
MPC pays for you and your passengers' medical bills (up to your policy limits) no matter who causes the accident. Remember:
- If you don’t have health insurance, MPC can pay for your medical bills, even when you cause the accident.
- May cover health insurance co-payments and deductibles.
- It may be more convenient for you if your auto insurance company pays medical bills while you work out a final settlement with an at-fault driver.
- Available coverage amounts vary from company to company.
You may wish to purchase MPC if you or your passengers do not have health insurance, or to supplement the health insurance you do have.
Collision & Comprehensive
Collision insurance pays for damages to your car caused by another vehicle, an object or a rollover. It’s not required by law, but most lenders require collision coverage if you are financing your car. Comprehensive insurance protects you against damage to your own car from perils like fire, theft, glass damage, hail, wind, flood or vandalism. Comprehensive isn't required either. People with older cars that have depreciated significantly in value sometimes forego these types of coverage to save on insurance premiums.
Other options
Other options are also available, such as road-side assistance coverage, rental car coverage, and glass coverage. Check with your company or agent for a complete list of their products.
If you can afford more insurance, carrying more than the mandatory minimum requirement is recommended. Think about the amount of insurance you'll want when you need it the most and balance that with what you can afford. Families should sit down with their insurance agent or company representative to determine the right amount for each individual and family.
Source - Rocky Mountain Insurance Information Association
Colorado Auto Insurance Today
Colorado’s auto insurance system puts you in charge of your insurance, and that makes sense.
Is it really time to make a major change to Colorado’s auto insurance system? Today, premiums cost less, Coloradans are happier with their auto insurance, competition for your insurance dollar has increased and there are fewer uninsured drivers.
Premiums Down
Contrast auto insurance premiums today with 2002 and early 2003, when average premiums were climbing higher and higher. The average Colorado premium increased close to 30 percent, when the national average was 8 percent.
Surveys show that in May, 2007, Colorado drivers saved an average of 32 percent on their car insurance, compared to June, 2003, just prior to adopting Colorado’s current system of insurance.
Colorado Consumers Are Happier
According to the Colorado Division of Insurance, the state agency that regulates health, life, auto and other forms of insurance, Coloradans logged 1,529 fewer complaints about auto insurance in 2004 compared to 2002. There were 4,562 consumer complaints in 2002 and 3,033 in 2004.
During that period, Colorado licensed 700,000 additional drivers, so the numbers tell a real story: don’t let the legislature tinker with Colorado’s auto insurance system!
Competition is good for Colorado
The Division of Insurance reports that since 2003, 25 additional insurance companies started insuring Coloradans. Other insurers expanded the amount of business they are selling here. Colorado’s healthier and more stable business climate attracted companies that previously didn’t want to do business in what they considered an over-regulated and unprofitable market. Lower premiums, more discount options and better coverage choices: that’s competition!
Fewer Uninsured Motorists
People want to do the right thing, and that really shows because more people are purchasing auto insurance today. CSS attributes this to the lower insurance costs we all enjoy, and the strengthening of penalties for driving without insurance.
- Uninsured cars in Colorado are down to approximately 10% according to the Department of Revenue, the lowest number with no insurance in more than a decade - and much lower than the national average.
- In 2004, the legislature moved to curb the uninsured drivers with a stiff fine of $500 for a first-time offender. The previous penalty was a paltry $100 for a first-time offense.