a young man in suit in his office showing an insurance policy and pointing with a pen where the policyholder must to sign

Courtesy of Colorado Division of Insurance

If you own an automobile in Colorado the law requires you purchase auto insurance. You are required to carry liability insurance to provide financial protection in the event you injure someone else or damage someone else’s property while operating your automobile. Colorado law requires liability coverage limits of at least $25,000 per person bodily injury, $50,000 bodily injury per accident and $15,000 in property damage. You may purchase higher coverage limits. An insurance company is also required to include uninsured/underinsured motorists’ coverage and medical payments coverage on you policy unless you choose to reject such coverage. Optional coverage includes comprehensive, collision, uninsured motorists’ property damage (only if you don’t purchase collision), towing, and rental car coverage.

You might save money on your automobile insurance premiums if you follow these steps:


  • Comparison shop: Colorado has a vibrant automobile insurance market with numerous insurers competing for your business. When shopping for insurance be sure to compare similar coverage and available options. Also, be sure to review the financial condition of the insurance company and its customer service record.
  • Find out the cost to insure the car – before you purchase it: Certain vehicles cost more to repair or may cause more damage to another vehicle if involved in an accident. If you finance the vehicle you will need to purchase physical damage coverage as a condition of the loan. Check the cost of insurance before making that big purchase.
  • Consider your level of deductibles: You may reduce your policy premium by increasing your comprehensive and/or collision deductibles. The deductible is the amount of money you need to pay before the insurance company pays for a loss. Be sure whatever deductible amount you choose you are able to cover that amount. You may have to pay the deductible whether you are at fault or not at fault in an accident.
  • Consider your coverage: Eliminating or lowering your physical damage coverage on older vehicles may lower your premium. If you have a loan on the car, your lender will require you maintain certain levels of physical damage coverage.

Ask about available discounts: The following are discounts most insurance companies offer and may be available to you:

  • Multiple car discounts – two or more cars insured with the same company
  • Multiple policy discounts – two or more types of policies with the same company (for example: auto and home, auto and life, auto, home and umbrella)
  • Anti-theft devices
  • Air bags or other safety equipment
  • Participation in driver’s education courses including a 55 Alive program
  • Good student discounts

Driving Habits and History

  • Drive responsibly: Accidents in which you are at-fault and motor vehicle convictions are factors that typically result in higher insurance premiums.
  • Low mileage: The fewer miles you drive the less chance you have of getting into an accident. Most insurance companies’ premiums vary by daily and annual mileage driven.

Complete and accurate information:

If you provide false or misleading information to the insurance company, the company may cancel your policy or increase your premium based on the actual information. When you Purchase your Policy:

  • Make sure the policy is correct:Review the policy information, such as address, vehicle use, requested coverage amounts, etc. and make sure everything is accurate. If there are any inaccuracies, be sure to address them with your agent or company as soon as possible.
  • Conduct an annual (or bi-annual) check-up: Keep you policy information updated. Various factors may affect your premium. Keep your address updated, notify your agent or company if your teenager receives his/her drivers’ license and confirm mileage driven.

Contact Our Colorado Springs Bad Faith Insurance Attorneys

Rector Law FirmThe Rector Law Firm offers free consultations. We’ll answer your questions, and let you know if you have a case. Our office is committed to providing the best legal service available. Our attorneys are natives of Colorado and have over 75 years of combined experience dealing with insurance companies, and representing victims of personal injuries. Call (719) 578-1106 or fill out the contact form on our website.

“I debated for a long time about getting a lawyer after an accident. Finally, when it looked like my own insurance company was letting me down, I was referred to Dan Rector and the Rector Law Firm. I found everyone there to be helpful, communicative and responsive to my concerns and upsets. It did actually feel like I had someone on my side who did the conflict resolution for me. They definitely helped with the stress of it all and finally got me a settlement that was beyond anything I could have done on my own and that allows me to get the treatment I want for an on-going issue. I would not hesitate to recommend this firm to anyone needing legal help after an accident.” – C. Schik