According to the U.S. Census Department American Community Survey, 88.6 percent of workers in Arvada, CO use a car, truck or van to travel to work every day. These individuals, and any others who drive for that matter, need to purchase auto insurance to meet Colorado’s financial responsibility requirements.
The following are five things that every driver should keep in mind when buying car insurance in order to obtain sufficient coverage for their financial situation and to save as much money as possible.
1. Know Colorado’s Car Insurance Requirements
Colorado requires all drivers carry minimum levels of legal liability insurance for bodily injury and property damage. This is an important part of buying car insurance, as failure to carry the minimum coverage can result in fines.
For liability for a single person’s injuries, the minimum is $25,000 of coverage, while it’s $50,000 total coverage for a single accident and $15,000 in coverage for property damage liability.
Additionally, the state requires all insurance companies offer $5,000 of medical payments (med pay) coverage to drivers when they purchase liability insurance. This insurance pays for the driver’s medical bills in an accident, although it’s not mandatory in the state to accept this coverage.
2. Carry Uninsured/Underinsured Motorist (UM/UIM) Insurance
UM/UIM insurance covers the following if you are in an accident with an uninsured or a hit and run driver:
- medical expenses;
- lost wages; and
It also provides coverage if an at-fault driver carries insufficient coverage to pay for your damages. The Insurance Research Council estimates that 14 percent of drivers nationwide don’t have auto insurance.
3. Make Sure You Know the Different Types of Coverage
Knowing how to buy car insurance that’s right for you requires reviewing the available types of coverage. In addition to UM/UIM, liability and med pay, insurance companies may also offer personal injury protection, which covers your medical bills and lost wages in an accident.
Other coverage options that might be available include:
- collision coverage, which covers repair or replacement if your car is damaged or totaled in an accident;
- comprehensive coverage, which covers theft, natural disasters and other events; and
- GAP coverage, which covers the difference between the fair market value of the vehicle prior to the accident and the remaining amount owed on a totaled vehicle.
4. Make Sure You Have Enough Coverage for All Your Assets
You can purchase an umbrella policy that protects you for liability over your auto insurance liability coverage limits. This prevents an accident victim going after your home and retirement accounts if you caused a catastrophic accident. Talk to your insurance agent about whether this coverage may make sense for you.
5. Ask about Discounts
Many auto insurance companies offer discounts for policyholders, allowing them to save on their premiums. Some of the common discounts that auto insurers offer are good student, multi-car, bundle discounts, discounts for completing defensive driving courses, and car equipment discounts for special technology in the car. Ask your agent what discounts the insurer offers, and review your eligibility for each.
If you were in a serious accident in Arvada, the Law Office of D.J. Banovitz can help you obtain adequate compensation via an insurance claim or lawsuit against an at-fault driver. Contact us at 303-300-5060 to schedule a free consultation about your case.