Full Coverage Auto Insurance: Colorado's Comprehensive Guide

In Colorado, full-coverage auto insurance is considered to be a combination of comprehensive, collision, and liability insurance. Comprehensive insurance covers damage to your car from non-collision incidents like theft, fire, or vandalism. Collision insurance covers damage to your car from a collision with another vehicle or object. Liability insurance, which is mandatory in Colorado, covers bodily injury to another person or property damage to another's vehicle or property when the insured is at fault for an accident. The minimum coverage required by the state of Colorado for liability insurance is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $15,000 for property damage per accident.

Liability insurance

In Colorado, automobile owners are required to carry liability insurance. Liability insurance covers bodily injury to another person or property damage to another's vehicle or property when the insured is at fault for an accident. The state of Colorado requires the following minimum coverages, although higher coverages may be purchased:

• $25,000 for bodily injury or death to any one person in an accident
• $50,000 for bodily injury or death to all persons in any one accident
• $15,000 for property damage in any one accident

In addition to liability insurance, there are other types of optional car insurance coverages that you may consider adding to your policy to better protect yourself and your vehicle in Colorado. These include collision coverage, uninsured/underinsured motorist coverage, and medical payments coverage.

It is important to note that driving without insurance in Colorado can result in severe penalties, including fines, driver's license suspension, points added to your driving record, and increased future insurance premiums.

Bodily injury liability

In Colorado, bodily injury liability insurance is a legal requirement for all drivers. This type of insurance covers the cost of any bodily injuries you cause to another person in a car accident, including emergency room charges, prosthetics, dental expenses, lost wages, and reduced earning capacity. The minimum bodily injury liability insurance coverage required by Colorado law is $25,000 per person and $50,000 per accident, often referred to as "25/50" bodily injury insurance. This means that if you are found to be at fault for an accident, your insurance will cover the costs of the other person's injuries up to $25,000, and up to a total of $50,000 for all injured parties in the accident.

While this is the minimum required by law, it is important to note that the cost of injuries resulting from a serious accident can quickly exceed this amount. In such cases, you could be held personally liable for the remaining costs. Therefore, it is generally recommended that drivers carry more than the minimum required coverage. Financial experts typically advise drivers to carry a 100/300 policy ($100,000 per person and $300,000 per occurrence). When deciding on your coverage amount, carefully consider what you can afford and whether you may need additional protection.

If you do not have the minimum required bodily injury liability insurance, you can face serious consequences. Police can pull you over and, if you cannot prove you have the necessary insurance, you may be subject to fines, license suspension, and vehicle impoundment. Additionally, if you cause an accident and your insurance coverage is insufficient to fully compensate the other party, you may be sued and held personally liable for the remaining costs.

Property damage liability

When purchasing property damage liability insurance, it is important to consider the value of the property that could potentially be damaged in an accident. For example, if you live in an area with expensive homes or businesses, you may want to consider higher coverage limits to ensure that you are adequately protected. Additionally, if you frequently drive in areas with high traffic or challenging road conditions, it may be prudent to increase your coverage limits to account for a higher risk of accidents.

It is worth noting that property damage liability insurance does not cover damage to your own vehicle. For that, you would need to purchase additional coverage, such as collision coverage or comprehensive coverage. These optional coverages can provide financial protection for repairs or replacements to your own vehicle, regardless of who is at fault in an accident.

In summary, property damage liability insurance is a crucial aspect of auto insurance in Colorado. By understanding the coverage limits, exclusions, and the importance of adequate protection, individuals can make informed decisions about their insurance choices and ensure they are prepared in the event of an accident.

Uninsured/underinsured motorist coverage

UM/UIM coverage is intended to cover medical fees and other damages when the insured party is hit by a driver who does not have insurance or has insufficient insurance. In Colorado, all insurers must provide UM/UIM coverage equal to the policyholder's current level of liability coverage for bodily injury, unless this coverage is waived by the policyholder in writing. The policyholder may then opt to carry a lower level of coverage or reject coverage entirely.

Colorado has a relatively high number of uninsured drivers, with approximately 16.3% of drivers uninsured as of 2019. This means there is a 1 in 6 chance of an uninsured driver being at fault in an accident. As such, UM/UIM coverage is an important consideration when purchasing car insurance in Colorado.

In the event of an accident with an uninsured or underinsured driver, UM/UIM coverage can provide valuable protection. It can help pay for medical expenses, loss of income, and funeral costs if someone passes away as a result of the accident. However, it is important to note that UM/UIM coverage does not include property damage, so it will not cover repairs to the insured's vehicle.

Colorado has introduced consumer-friendly legislation, the Colorado Revised Statute 10-4-609, which has improved the accessibility and effectiveness of UM/UIM coverage. This includes allowing policyholders to "stack" or combine multiple UM/UIM policies and prohibiting insurance companies from reducing payouts through "set-off" or "anti-stacking" practices.

Medical payments coverage

The minimum coverage offered by MedPay is $5,000, but higher coverage amounts can be chosen. MedPay is typically sold in multiples of $5,000. It is available for a small premium and can be used to pay deductibles at the doctor's office and hospital. Importantly, when a claim is settled, the insured person does not have to reimburse the insurance company for anything that was covered by MedPay benefits.

MedPay is different from ordinary health insurance, which often requires the policyholder to cover a copay and satisfy an annual deductible before the insurance covers medical bills. MedPay can be used to pay these deductibles and copays. Additionally, health insurance companies can demand reimbursement for the money they paid to cover medical bills if a settlement or jury verdict is won by the insured person. In contrast, MedPay benefits do not have to be reimbursed.

While MedPay is optional, it is a valuable addition to an auto insurance policy as it provides financial protection if the insured person is at fault for an accident and covers expenses that health insurance may not.

Frequently asked questions