What Is Necessary When Buying Colorado Car Insurance

There are lots of different policies and options available when purchasing Colorado car insurance. Each state has its own laws regarding how much coverage a driver must have on their vehicle, as well as liability coverage for damage done to other people and their property. This is also true for Colorado.

Colorado uses the tort system. The tort system means that the person legally at fault in an accident, and their insurance company, must pay for any and all damages whether medical or property that came from the accident. If a victim has pain and suffering and/or loss of pay from inability to work, this allows them to sue the person who was at fault in the accident.

Colorado requires that a person have 25/50/15 liability coverage. The insurance company will cover $25000 of medical bills, with at least $50000 available for this, and $15000 will be available for property damage from the accident, if that person is found to be at fault.

Along with this, there are several optional policies a person may get through their insurance company. These policies will help take some of the financial burden off of the insured, in certain situations, after something bad happens whether it is a minor or major accident, or even something natural.

Uninsured and under-insured motorist coverages are sold to cover somebody in the instance that the subject found to be at fault has no insurance or does not have enough to pay for all of the medical bills and damages. Although not required to be purchased, it is required, in the state of Colorado, that insurance companies offer these policies, and the person being insured must opt out if they think it is unnecessary.

Medical payments coverage is also something that is required to be offered by insurance companies in the state of Colorado. They must offer a minimum of $5000, and the insured must opt out to not receive it. If a person has this in their policy, the insurance company is required by state law to hold $5000 of it for a period of 30 days after an accident to pay for trauma related medical bills.

Collision coverage is for the possibility of a single car accident. It will cover the insured person and car, as well as whatever property is damaged in such a collision. While not required by law, some banks and/or financing companies may require that the person have this to protect the equity they hold in the vehicle.

Comprehensive coverage is added for non-accident related things like vandalism, theft, and natural disasters, such as flood or hail damage. Just like collision coverage, comprehensive is not required by law, but may be required by many banks and/or financing companies that insure motorists in Colorado.

AS with many other states, this is taken very seriously in this state as well. With fines and/or jail time a possibility, a vehicle owner must make sure they always have proper proof of Colorado car insurance on their person or in their vehicle.

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