Colorado Auto Insurance Basics


Every driver who registers their vehicle in the state of Colorado must have the required automobile insurance coverage. Besides being the law, it is really a protective measure for you, your family and other drivers on the road. The basic components of car insurance break down into different areas of liability protection.

Every state has its own mandatory requirements and levels of coverage. These levels are usually low and are the minimum amount that is required by law in your state. You may want to increase the amount of coverage to further protect yourself and your family.

All totaled there are six major areas of coverage and then some extras that you may want to consider depending on your needs. The main coverage includes: bodily injury liability, property damage liability, personal injury protection or PIP, collision, comprehensive, and uninsured /underinsured motorist coverage.

Your bodily injury coverage will take care of the injuries of others that were involved in an accident that was your fault. It pays for medical bills, compensation for time off from work, legal representation if required, rehabilitation or nursing care, pain and suffering, and funeral expenses.

While bodily injury covers others that were involved in the accident, personal injury protection covers you and any passengers that were in your vehicle. It also covers any drivers that have been authorized to drive your vehicle, and you and your family members when you are passengers in another vehicle. It will usually cover around 80% of your medical expenses, rehabilitation costs, funeral expenses and lost wages.

If you were to damage another person’s property through an accident, your property damage coverage will take care of it. Your insurance here will pay for the repair and replacement of the property including parts and personal items that may have suffered damage due to the accident (any items that may have been left in the car that was deemed beyond repair).

You must carry collision insurance if your vehicle has been financed and you still owe money on it. Collision insurance covers the cost of repairing or replacing your vehicle if it was involved in an accident.  Comprehensive coverage protects your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or there it suffers flood damage.

There are also other optional forms of protection including uninsured motorist coverage. This pays for any damages that are a result of an uninsured motorist or a hit and run driver. Under-insured motorist coverage comes into play if the other driver, who is at fault, does not have enough insurance to cover you.

In addition you may want to look further into fire and theft coverage, gap insurance, pay-per-mile coverage, physical damage coverage, and rental car insurance.