In the state of Colorado, collision insurance is required for every vehicle owner to ensure financial protection in the event of a motor vehicle accident. Colorado is an at fault state, which means that the responsible parties insurance will be required to pay for the cost of injuries and damages up to their insurance policy limit. This mandatory insurance coverage helps cover the cost of medical bills and vehicle repairs or replacement, regardless of who is at fault. The requirement for collision insurance safeguards vehicle owners from significant financial losses due to damages incurred from collisions. By mandating this insurance, Colorado aims to promote responsible driving, reduce the financial burden on individuals involved in accidents that they did not cause, and ensure that all drivers can afford the financial impact of motor vehicle collisions, thereby maintaining road safety and economic stability.
What Types Of Car Insurance Are Required In Colorado?
Vehicle owners in Colorado are legally required to carry liability insurance, which is designed to cover bodily injury to another person or property damage to another's vehicle or property when the insured is at fault for an accident. To legally operate a vehicle in Colorado, drivers must carry these minimum coverages:
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$25,000 for bodily injury or death to any one person in an accident
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$50,000 for bodily injury or death to all persons in any one accident
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$15,000 for property damage in any one accident
While these are the minimum requirements, drivers have the option to purchase higher car insurance coverage limits for additional protection. It is important to note that comprehensive insurance, which covers damages to the insured's own vehicle from non-collision events such as theft or natural disasters, is not required by law for drivers in Colorado.
What Is Comprehensive Auto Insurance & What Does It Cover?
Comprehensive insurance coverage is typically an optional type of insurance that provides protection for damage to your vehicle caused by non-collision events beyond your control. Otherwise known as "comprehensive insurance," it is important to note that this coverage is a specific addition to an existing policy that must be requested, and is not a separate type of insurance.
Comprehensive insurance coverage safeguards vehicles against unexpected damages that have not been caused by a collision with another vehicle. A wide range of incidents are covered by comprehensive insurance, including:
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Theft
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Vandalism
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Fire
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Collisions with animals
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Explosions
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Windshield and glass damage
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Falling trees or limbs
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Rocks or objects kicked up by or falling off other cars
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Weather related events and natural disasters such as:
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Storms
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Earthquakes
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Hail
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Wind
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Floods
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Lightening
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This coverage provides peace of mind to drivers by protecting against a wide range of potential risks that can lead to costly vehicle repairs or the replacement of their entire vehicle.
When Is Comprehensive Insurance Required?
Comprehensive coverage, though not mandated by Colorado state law, may be required by lenders or leasing companies if you are financing or leasing your vehicle. This insurance requirement ensures that their financial investment is protected in the event of non-collision-related damage, as well as protected the person financing or leasing the vehicle. By requiring comprehensive coverage, lenders and leasing companies safeguard their interests, as well as yours, as it guarantees that the vehicle will be repaired or replaced if damaged by incidents that go beyond the driver's control. Therefore, while drivers in Colorado are not legally obligated to purchase comprehensive insurance, those with financed or leased vehicles, typically through dealerships, may be required to have this coverage to comply with their loan or lease agreements.
Should I Get Comprehensive Insurance Added To My Policy If I Own My Vehicle?
Adding comprehensive insurance to your motor vehicle insurance policy is recommended when living in Colorado due to the state's unpredictable weather and natural disasters. Comprehensive vehicle coverage offers protection against a wide range of non-collision-related incidents, and with the unpredictable weather in Colorado, you’ll be covered. Given Colorado's susceptibility to sudden and severe weather changes, including hailstorms, wildfires, and heavy snowfall, having comprehensive insurance ensures that your vehicle is safeguarded against these potential weather related risks. This added layer of protection for your vehicle provides peace of mind, knowing that your vehicle is covered against costly repairs or replacement, making it a great investment for Colorado drivers.
Do I Need Comprehensive Insurance If I Have Full Coverage?
Comprehensive insurance is typically included in a full coverage auto insurance policy. Full coverage is a combination of coverages which generally covers liability, comprehensive, and collision coverages, along with any additional coverages required by the state of Colorado. Therefore, if you have full coverage, you may not need to purchase comprehensive insurance as an add-on to your insurance policy. However, it's important to review your specific Colorado vehicle insurance policy to ensure it covers everything you want. Automotive insurance policies can vary, and understanding the details of your coverage will help you confirm that you are adequately protected against a wide range of potential accidents and risks, including those that are covered by comprehensive insurance. In the event of an accident, consulting a car accident lawyer can provide valuable assistance in navigating insurance claims and legal matters.
