Automobile Insurance Coverage
Automobile Insurance Coverage in Colorado: What You Need to Know
Understanding automobile insurance coverage can feel overwhelming, especially after a car accident when you suddenly need clear answers. Insurance policies are often filled with technical language, exclusions, and fine print that can make it difficult to know what protection you actually have. Knowing how auto insurance works in Colorado can help you make informed decisions and protect yourself financially after a crash.
Colorado’s Mandatory Auto Insurance Requirements
Colorado law requires every driver to carry minimum liability insurance coverage. These minimum limits are:
- $25,000 for bodily injury to one person
- $50,000 for total bodily injury per accident
- $15,000 for property damage per accident
This “25/50/15” coverage is designed to pay for injuries and property damage you cause to others if you are at fault in an accident. It does not cover your own injuries or vehicle damage. While these limits meet legal requirements, they are often insufficient to cover the true cost of serious injuries or significant property damage.
Types of Automobile Insurance Coverage
Bodily Injury Liability
This required coverage pays for medical expenses, lost wages, and other damages suffered by people injured in an accident you caused. It does not pay for your own injuries.
Property Damage Liability
Also required, this coverage pays for damage you cause to another person’s vehicle or property, such as a fence, building, or parked car.
Medical Payments Coverage (MedPay)
MedPay helps pay for medical bills for you and your passengers after a crash, regardless of who caused the accident. In Colorado, most auto policies include MedPay unless it is specifically declined in writing. It can be an important source of immediate help with medical expenses.
Uninsured and Underinsured Motorist Coverage (UM/UIM)
This coverage protects you if you are injured by a driver who has no insurance or does not have enough insurance to cover your damages. Colorado insurance companies are required to offer UM/UIM coverage, though it can be waived. Given the number of underinsured drivers on the road, this coverage is often critical.
Collision Coverage
Collision coverage pays for repairs to your vehicle after an accident, regardless of fault, minus your deductible. This coverage is especially important if your vehicle is financed or leased.
Comprehensive Coverage
Comprehensive coverage pays for damage to your vehicle caused by non-collision events, such as theft, vandalism, fire, hail, or hitting an animal.
Why Minimum Coverage Is Often Not Enough
The minimum insurance limits required by Colorado law are just that—a minimum. Medical bills from even a moderate injury can quickly exceed $25,000. Vehicle repairs or replacement costs can also surpass $15,000, especially with newer vehicles. If damages exceed the at-fault driver’s policy limits, that driver may be personally responsible for the remaining costs.
Many drivers choose higher liability limits, such as 100/300/50 or more, to better protect themselves. Higher uninsured and underinsured motorist limits can also make a significant difference if you are seriously injured by a driver with little or no insurance.
Colorado Is an At-Fault State
Colorado follows an at-fault system for car accidents. This means the driver who caused the accident—or their insurance company—is responsible for paying damages. Those damages may include medical expenses, lost wages, pain and suffering, and other losses. Insurance companies often dispute fault or attempt to limit payouts, which can make the claims process stressful and confusing.
Protecting Yourself Before an Accident Happens
Before an accident occurs, it’s wise to review your insurance policy and discuss coverage options with your insurance agent. Important considerations include:
- Increasing liability coverage beyond state minimums
- Carrying uninsured and underinsured motorist coverage
- Maintaining adequate MedPay limits
- Considering an umbrella policy for additional protection
These steps can help protect your finances and provide peace of mind if you or a loved one is injured.
How Pushchak Law Can Help
If you have been injured in a car accident in Colorado, dealing with insurance companies can be challenging. Pushchak Law helps accident victims understand their insurance coverage, deal with insurers, and pursue full compensation for medical bills, lost income, and pain and suffering.
Contact Pushchak Law today for a free consultation.
This article is for informational purposes only and does not create an attorney-client relationship.
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