Car insurance protects drivers in car accidents.
Many states such as Colorado require drivers to carry automobile insurance on their vehicles with certain minimum liability limits. Automobile insurance, or car insurance, is intended to protect the driver from financial detriment that may ensue after an automobile accident. However, the insurance company will only cover up to the amount specified in the policy limit. In Colorado, drivers are required to carry insurance policies that cover bodily injury liability and property damage liability. Collision coverage, comprehensive coverage, medical payments coverage and uninsured motorist coverage may be optional.
Bodily Injury Liability
In the event the insured causes an accident where another person is injured or killed, bodily insurance liability helps cover that financial loss. In Colorado, drives must carry a limit of at least $25,000 per person for bodily injury and $50,000 per accident for bodily injury.
Property Damage Liability
If an insured driver causes an accident where another's vehicle or property is damaged, property damage liability helps cover that financial loss. In Colorado, drivers must carry a minimum limit of $15,000 per occurrence.
Uninsured/Underinsured Motorist
Uninsured and underinsured motorist coverage covers the insured driver's medical expenses and cost of the vehicle's repair when the driver at fault does not have insurance or enough insurance coverage to cover all of the expenses. In some policies, this coverage is combined with collision and comprehensive coverage limits. In Colorado, drivers can waive this additional coverage in writing, provided their policy limits meet all other minimums.
Comprehensive and Collision Coverages
Collision coverage covers the cost of damage to the driver's car when the driver hits another car or object. Comprehensive coverage, on the other hand, covers the cost of the car if it is stolen or damaged by some means other than a collision, such as forces of nature. For example, if a tree falls on your car, comprehensive insurance covers the loss. These additional coverages are not required by law in Colorado, but many banks and financial lenders in Colorado require collision insurance on all cars purchased with a loan.
Medical Payments Coverage
Also know as Med Pay or MPC, medical payments coverage covers any medical costs associated with a car accident. In Colorado, insurance companies are required by law to offer a $5,000 limit in coverage for medical costs and include it automatically on all of their policies. Colorado drivers can opt out of the coverage, but must do so in writing or by telephone.
Tags: Colorado drivers, coverage covers, accident where, accident where another, bodily injury, causes accident, causes accident where
