Colorado Car Insurance Policy
A Colorado Car Insurance Policy must contain the legally mandated minimum coverage required under law. The law requires that each policy has a minimum coverage of $25000 for a single person, $50000 for an accident and $15000 for property damage. Colorado States changed from a no fault state to a tort state on the first of July 2003.
Colorado Legal Insurance Requirements
The laws of the state of Colorado also mandate that no car can be registered without proof of insurance. All Insurance Companies are required to inform the Department of Regulatory Agencies (DORA) division of Insurance of the insurance policies issued by them and the insurance policies renewed by them. Your name, date of birth, license information, type of car and your address are entered into a database for verification if and when required by the government. An uninsured driver has to pay a first offence penalty of $500 and a second offence penalty of $1000. Penalties of four months community service and an eight month suspension of the driving license will also be imposed.
Policy Decisions Should be
Based on More Than Cost
Purchasing a policy with only the minimum cover legally required may be cheap but will be inadequate when an accident occurs. The state motto of the State of Colorado, 'Nothing Without Providence', is a good reason to invest carefully on a car insurance policy in the event of providence smiling unkindly when you are on the road. Higher liability or bodily injury and property damage premiums cover your major expenses in the event of an accident. An Uninsured/ Underinsured cover will pay your expenses in case you meet with an accident and the other driver is uninsured. Insurance premium for collision insurance cover is usually required if your car is being financed. Comprehensive insurance coverage will pay for damages caused by vandals or natural calamities. Medical Insurance cover is required because the Personal Injury Protection Payment available in no fault states is not required in a tort state like Colorado. If your health insurance premium covers accidents you can avoid duplicating the cover by waiving the purchase of automobile medical insurance.
Policy Premiums Can be
Reduced With Proper Research
A number of factors reduce premiums. These factors are based on discounts given by different Car Insurance Companies on varying counts. Your age, year make and model of the car, impeccable credit and driving record and place of residence will reduce the insurance premium to be paid under the policy. A detailed study of the policy is necessary to eliminate unnecessary insurance coverage based on your car usage and lifestyle without compromising on coverage for the major injury and damage coverage which will form the bulk of your payments at the time of an accident.
Our Free Car Insurance Quote Tool will compute the best Colorado Car Insurance Policy customized to your unique requirements by getting quotes based on the information fed in by you in our detailed yet simple form.