Tag: auto insurance in Colorado Springs

How to Know If You Need Commercial Car Insurance in Colorado

How to Know If You Need Commercial Car Insurance in Colorado

Thanks to the popularity of Uber and Lyft, more people are earning money by driving their cars. However, this situation does pose a question for many of those drivers. Will your Colorado Springs car insurance policy cover you if you’re involved in an accident? You […]

How Points Impact Your Auto Insurance Rates

How Points Impact Your Auto Insurance Rates

If you’re shopping for auto insurance in Colorado Springs, one of the questions you’ll have to answer is if you’ve had any traffic violations or claims. If the answer is yes, you’re likely going to be paying more for your insurance policy because of the […]

Understanding the Limits and Requirements for Liability Car Insurance in Colorado Springs

Understanding the Limits and Requirements for Liability Car Insurance in Colorado Springs

If you have auto insurance in Colorado Springs or elsewhere in Colorado, you should be aware of the state requirements. It is required to carry liability insurance if you own a vehicle anywhere in the state.

Colorado also transitioned from being a no-fault state to a tort state. This means the person responsible must pay for damages and injuries to everyone involved in the accident.

Required Liability

Liability coverage means insurance to pay out if you are responsible for the incident. Your insurance provider is only required to pay out if you are liable or at fault. It covers the other driver and passengers as well as the other vehicle and any other property.

Each state has its own limits for the minimum amount of insurance you must carry. For Colorado, that amount is as follows:

  • $25,000 per person injured in the accident
  • $50,000 for a total per accident for injuries
  • $15,000 per accident for all damages to property

To drive legally in Colorado, you must have at least this much coverage in your policy. In fact, insurance carriers who are licensed to operate in the state won’t offer less than the minimum amount.

How Much Liability Coverage Do You Need?

While the state law dictates how much you must have in liability coverage, it doesn’t limit you on how much you can purchase. You may decide that the minimum amount isn’t enough. In fact, it’s often not enough if a serious accident should occur.

Look at the property damage minimum. While $15,000 might sound like a lot, it doesn’t cover much if you should cause major damage to an expensive or brand new vehicle. If the accident is serious enough for the vehicle to need to be replaced, your insurance would have to pay up the fair market value.

Of course, this only works if you have enough coverage on your liability insurance. You may wonder what happens if the expenses are more than the amount of coverage you have. In this situation, the insurance company pays up the limits of coverage, and you’re responsible for the rest. The other party could sue you for the difference in what has been paid and what is owed.

Even $25,000 for injuries to a person isn’t enough. If the injury requires surgery, therapy and rehabilitation, it’s easy for costs to add up to well over this amount. Once again, you would be liable for all those expenses beyond the limits of your policy.

Rather than just looking at the cheapest car insurance in Colorado Springs that you can find, you should consider how much coverage you really need. If you have any assets, such as your own home or business, you could put those at risk without adequate coverage.

Go on and get your quotes for the liability coverage required by Colorado law. Then, sit down and talk to your agent about realistic amounts of coverage and what will give you the peace of mind for when you get behind the wheel.