Don’t Buy Insurance Until You Have Read These Tips

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If you’re tired of not having the desirable insurance coverage, then you must be looking for another insurance company this time around. You’re not alone, because thousands of people share the same fate and are looking for better coverage, benefits and value for their money.

To find a good one is to differentiate a new product from the current one. Although you can purchase as many auto insurance coverage’s as you like, that would be a very costly effort to take. For those who have a tight budget, an informed decision would complete the puzzle by allowing them to obtain the coverage they need with minimum investments.

As mentioned earlier, you can buy as much coverage as you like. This will guarantee complete protection while you’re on the road. However, keep in mind that Colorado is enforcing mandatory coverage for all drivers. If you’re not sure what to take, it’s best to consult your local insurance agent and ask regarding this specific requirement.

To drive in Colorado, you must acquire property damage and bodily injury liabilities as part of your insurance policy. As of this writing, the required bodily injury coverage is at $50,000 and property damage liability at $15,000.

If you’re planning to purchase less coverage, please don’t. It’s a federal offense to do so and you can spend time in jail if you are caught under-insured. The money you saved will not be enough for the expensive and costly fines that you’re going to pay. The solution is rather simple and that is to purchase the required coverage and save yourself from major discomforts.

While we all agree that the minimum coverage requirements fall short, this is already a big relief for those who have a very limited budget. For those who are looking for absolute protection, they can purchase additional coverage as they please. 

In reality, coverage of $15,000 for property damages is extremely low. Keep in mind that if the involved car is a luxury or sports car, that value will be completely dwarfed as soon as the bills arrive.

We’re only discussing about property damages and we’re already scratching our heads. Consider medical expenses, which is very expensive these days. So how are you going to protect yourself against this financially draining situation? Don’t drive when you’re under-insured and when budget permits, purchase additional policies other than those required by the state.

What happens when you’re under-insured?

If you drive, caught in an accident and your insurance coverage is not enough, you are required by the law to pay all the expenses and damages beyond what’s stipulated in your policy agreement. This means that if your insurer indemnifies up to $50,000 for the bodily injury and the hospital bill has reached $80,000, you will be held responsible to cover the remaining balance of $30,000.

There have been many instances where people are sued because they’re unable to pay for the balances. This is the reason why we don’t recommend having the minimum state requirement coverage much more being under-insured. You don’t want to see yourself in a similar situation in the future.