Well, it all depends on your unique scenario and the laws of your state.
Colorado auto insurance coverage requirements may be different than your state. Your typical auto insurance policy can include many different kinds of coverage.
As an independent insurance agent, we provide professional advice on the type and amount of car insurance coverage you should have to meet your individual needs and comply with Colorado state law.
Liability for Bodily Injury – The minimum coverage for bodily injury will be different depending on the state you live in. Typically, you can expect to pay $10,000-$25,000 per person per accident.
The majority of auto policies will stop at a maximum of $300,000-$500,000 per accident for liability coverage. While it may sound like a lot, if you hurt someone with your car, you can be sued for a lot of money. You need to make sure the amount of liability coverage you carry should be high enough to protect your assets just in case an accident occurs.
If you’d talk to insurance agents, the majority of them are going to recommend you carry a limit of at least $100,000/$300,000. Now, that may not be enough. While cheap auto insurance is great, when an accident happens, it often leaves you in a bad place.
For example, let’s say you have a home worth $2M. If you face a lawsuit, you could lose your home if your insurance coverage is insufficient. This is why a lot of people choose to get additional insurance coverage. You can get additional coverage with a Personal Umbrella or Personal Excess Liability policy. The greater the value of your assets, the more you stand to lose, so you need to buy liability insurance appropriate to the value of your assets.
Liability for Property Damage – As for your liability coverage on property damage, your limits are going to vary depend on the state you live in. Unfortunately, just because you have the limit covered doesn’t mean you’re fully protected.
For example, let’s say you hit a vehicle that cost $60,000. The repairs on a car worth this can easily add up quick. If you don’t have the coverage to fully cover it, you may find yourself in a hard spot.
We’d recommend check in on a personal umbrella policy, which can help you cover excess cost. Even so, the insurance carrier you’re working may require you carry more coverage to qualify for this.
Collision – Collision coverage covers the cost of damage to your vehicle in the event of an accident. You won’t be responsible for having to figure out how much car insurance to buy, that’s going to depend on the number of vehicles you insure. However, you will need to decide on what to buy and what type of deductible you want to pay.
When it comes to a higher deductible, it usually means your premium is going to be a lower cost. The higher your deductible, the lower your premium will be. Deductibles can range from $250 to $1,000.
The reason collision coverage is important is because it’s valuable when you have a newer car. As your vehicle ages, collision coverage is less important. For example, if your car is only worth $2,000 and the deductible is $500, it may not make sense to buy collision coverage. Collision insurance is not generally required by state law, but you do want to make sure that’s accurate first.
Comprehensive – Miscellaneous damages to your car not caused by a collision, such as fire and theft, can be covered if you have comprehensive insurance coverage. Just like with Collision coverage, you need to choose a deductible. The higher deductible you choose, the lower your premium will be.
Comprehensive coverage is generally sold with collision, the two are often commonly referred to as physical damage coverage. If your car is leased or financed, the leasing company or lender may require you to have physical damage coverage. They can require it even if your state doesn’t by law.
Medical Expenses – This important coverage will help you cover the cost of medical care for you and your passengers if an accident should occur.
The limit you decide to choose under medical expenses coverage will be the maximum that’s paid for medical claims, representing each passenger. For example, if you choose a $3,000 medical expense limit, each passenger will have up to $3,000 coverage for medical claims resulting from an accident in your vehicle. We’re just using that as an example. A terrible accident where passengers are seriously hurt can leave them with a lot of medical expenses, so choose this carefully.
Uninsured/Underinsured Motorist Coverage – This type of car insurance coverage protects you in the event of an accident and the other driver is at fault but has too little or no insurance. It’s used to cover the gap between your costs and the other driver’s coverage, up to the limits of your own insurance coverage.
In some states, this coverage is limited to bodily injury, while some states may cover property damage. The limits required and optional limits are determined by state law.
Personal Injury Protection (“PIP” or “No-fault”) – PIP coverage, required by law in some states, covers your medical costs and those of your passengers, regardless of who is at fault. The limits required and optional limits that may be available are determined by state law.
Bundling Insurance – It’s important to note that bundling your home and auto insurance can help you save money on your coverage.
So, how much auto insurance do I need?
As you can see, there’s a lot of variables that will determine exactly what you need. We recommend giving us a call so we can answer any questions you may have and go over all of these cover options with you.
Give us a call today at 1-303-623-1997 to get started. You can get a free car insurance quote right now.