By law, most states require that you carry certain types of coverage if you drive your vehicle on public roadways.
Bodily Injury Liability protects you in the event that you cause an accident which results in either injury or death to someone else. While our agency and many financial experts recommend that you carry at least $100,000 per person and $300,000 per occurrence, generally expressed as “100/300”, you need to consider what assets you wish to protect and what premium you can afford when deciding what limits are right for you. COLORADO REQUIRES LIMITS OF $25,000 PER PERSON FOR BODILY INJURY, $50,000 PER ACCIDENT FOR BODILY INJURY, or “25/50”.
Property Damage Liability (PD) covers damage you cause to someone else’s car, home, commercial building, etc. Our agency recommends that you carry at least $100,000. COLORADO REQUIRES A LIMIT OF $15,000 PER OCCURRENCE.
Uninsured/Underinsured Motorist (UM/UIM) coverage is for your medical and other expenses when you are hit by another driver who either has no insurance or has limits which are less than what you carry on your policy.
COLORADO ALLOWS YOU TO REJECT THIS COVERAGE. However, our agency recommends that you carry limits equal to the BI limits you select. If you select this coverage and do not have collision coverage on your car, you may also select Uninsured Motorist Property Damage (UMPD) for damage to your vehicle caused by an uninsured driver.
Medical Payments Coverage (Med Pay) Colorado insurers must offer you $5,000 in coverage. If you don’t want this coverage, you must reject it in writing. Colorado law also requires your insurer to hold $5,000 of your medical payments coverage for 30 days for first responder bills. Our agency recommends that you consider more than minimum coverage here as well.
Collision Coverage is not required by law, but may be required if your vehicle is leased or financed. This coverage is for damage to your car, subject to a deductible, if you run into another car or object. It also pays if your automobile overturns.
Comprehensive Coverage is also not required by law, but may be required if your vehicle is leased or financed. This coverage is for damage to your car, subject to a deductible, that is not caused by a collision. Examples are glass breakage, fire, theft, vandalism, hail, falling objects, and hitting a deer or other animal.
Common Optional Coverages available include coverage for special equipment that you have installed in your vehicle, gap insurance, rental reimbursement, and roadside assistance.