A Guide To Auto Insurance In Colorado
If you own an automobile in Colorado, the law requires you to purchase auto insurance. You are required to carry liability insurance to provide financial protection in the event you injure someone else while driving or damage someone else’s property while operating your vehicle. Colorado law requires minimum liability coverage limits of at least $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 for property damage. You may purchase higher limits, and in most cases doing so is strongly advisable.
An insurance company is also required to include uninsured and underinsured motorist coverage and medical payments coverage on your policy unless you choose to reject such coverage in writing. Optional coverage types include comprehensive, collision, uninsured motorist property damage coverage (only if you do not purchase collision), towing, and rental car coverage.
How To Save Money On Your Auto Insurance Premiums
Auto insurance is a significant ongoing expense, but there are several legitimate ways to reduce what you pay without sacrificing the coverage you need.
Coverage Decisions
Comparison shop. Colorado has a competitive automobile insurance market with numerous insurers competing for your business. When shopping for insurance, be sure to compare similar coverage levels and available options across carriers. Also review the financial condition of the insurance company and its customer service record before making a decision. The cheapest option is not always the best one if the company has a poor claims-handling reputation.
Find out the cost to insure a vehicle before you buy it. Certain vehicles cost significantly more to repair or may cause more damage to another vehicle in an accident. If you finance the vehicle, your lender will require you to purchase physical damage coverage as a condition of the loan. Checking insurance costs before you buy can prevent an unpleasant surprise.
Consider your deductible levels. You can reduce your policy premium by increasing your comprehensive and collision deductibles. The deductible is the amount you pay out of pocket before the insurance company pays for a covered loss. Whatever deductible amount you choose, make sure you could actually cover it if you needed to. Keep in mind that you may have to pay your deductible regardless of whether you are at fault in an accident.
Consider your coverage on older vehicles. Eliminating or reducing physical damage coverage on an older vehicle with a low market value may lower your premium. However, if you have a loan on the vehicle, your lender will require you to maintain certain levels of physical damage coverage regardless.
Available Discounts Worth Asking About
Most insurance companies offer a range of discounts that many policyholders never think to ask about. These may include multi-car discounts for insuring two or more vehicles with the same company, multi-policy discounts for bundling auto with home, life, or umbrella coverage, discounts for anti-theft devices, discounts for air bags or other safety equipment, discounts for completing driver’s education courses including defensive driving programs, and good student discounts for young drivers maintaining strong academic records.
Driving Habits And History
Drive responsibly. Accidents in which you are at fault and motor vehicle convictions are among the factors that most reliably result in higher insurance premiums. A clean driving record is one of the most effective long-term strategies for keeping your insurance costs under control.
Low mileage. The fewer miles you drive, the lower your statistical risk of being involved in an accident. Most insurance companies adjust premiums based on daily and annual mileage, so if your driving habits change significantly, it is worth letting your insurer know.
Keeping Your Policy Accurate
Providing false or misleading information to your insurance company can result in your policy being canceled or your premiums being increased once the accurate information is discovered. It can also jeopardize your ability to collect on a claim when you need it most. To protect yourself, review your policy documents carefully when you first receive them and verify that your address, vehicle use description, and requested coverage amounts are all correct. If you find any inaccuracies, address them with your agent immediately.
Also make it a habit to conduct an annual or semi-annual policy review. Various life changes can affect your premium and your coverage needs, including a change of address, a teenager receiving their driver’s license, a significant change in your annual mileage, or a major purchase or home improvement that affects your overall coverage picture.
When Your Insurance Company Is Not Treating You Fairly
Understanding your policy and your rights is the first line of defense against being taken advantage of by an insurance company. But even well-informed policyholders can find themselves facing an insurer that delays claims, undervalues losses, or simply refuses to honor the coverage they paid for. When that happens, Colorado law provides real remedies. Under Colorado Revised Statute 10-3-1115 and 10-3-1116, an insurer that unreasonably delays or denies a valid claim can be held liable for twice the covered benefit plus attorney fees.
If you believe your insurance company is not dealing with you in good faith, our Colorado Springs bad faith insurance attorneys are here to help. You can also review our guides on actual cash value and replacement cost value to better understand how insurers calculate what they owe you and where disputes commonly arise.
Contact Our Colorado Springs Bad Faith Insurance Attorneys
Rector Stuzynski Law Firm offers free consultations. Our Colorado bad faith insurance attorneys are natives of Colorado with over 75 years of combined experience dealing with insurance companies and representing victims of personal injuries. We will answer your questions and let you know if you have a case. Call (719) 578-1106 or fill out the contact form on our website to get started today.
