Guide for shopping car insurance rates in Colorado

Apr 24, 2021 | Personal Insurance

Did you know that there were 121,648 cases of car accidents reported in Colorado in 2019? It’s around 337 car collisions in a day. A survey showed 77% of drivers had been involved in at least one car mishap. Moreover, average people have been predicted to encounter three to four car accidents in their life span. There’s no certainty on when or how you’re going to encounter a car accident. To be prepared, do yourself a favor and get yourself car insurance.

In this modern time, a car is a necessity. Cars are a valuable asset in our daily lives, especially in our work. As a car owner, you have a legal responsibility for any injury or damage you may cause in the event of a car accident. That is why the State of Colorado requires every car owner to secure liability insurance. The State of Colorado imposes steep penalties on anyone caught driving without car insurance. 

Penalties are as follows:

  • Four points on your driver’s license.
  • First offense: A fine of $500 and a license suspension until the provision of proof of car insurance to the Division of Motor Vehicles. 
  • Second Offense within 5 years: Minimum fine of $1,000 and suspension of driver’s license for four months.
  • Third Offense and Successive Offenses within 5 years: The lowest fine of $1,000 and suspension of driver’s license for eight months.
  • The court may sanction an extra 40 hours of community service. 
  • In the case of a second and succeeding offense within 5 years, a jail time of 10 days to one year might be given.

Liability insurance is designed to protect drivers from the financial expenses of a car accident. Having said that, shopping for car insurance is a must. But, scouting for reasonable and adequate auto insurance coverage could be a tedious process. Everyone wants to get the right value for their money. 

Here’s a guide to help you to shop for the best car insurance rates in the State of Colorado:

  1. Know the minimum requirements of liability insurance mandated by the State of Colorado.

The state requirement is the most important factor to consider in choosing car insurance for you. It will guide you in choosing the best automobile insurance protection you need. In this case, the State of Colorado requires all car owners to get liability insurance. Liability insurance covers any injury to another person or damage to property in a car accident when the insurer is at fault.

Here are the minimum car insurance coverage required by the State of Colorado:

  • $25,000 for bodily injury or death to a single person in an accident;
  • $50,000 for bodily injury or death to multiple people in any one accident.
  • $15,000 for estate damage in any single incident of a car accident.

Liability insurance policies have two main coverages. It protects the insured party from any legal costs and payouts associated with bodily injury and property damage. 

Bodily injury coverage pays for the medical bills associated with car accidents such as:

  • Medical expenses
  • Lost wages
  • Pain and suffering. 

While property damage coverage pays for associated bills like:

  • Vehicle repair
  • Removal of a knocked tree
  • Repair of damaged fences or walls
  1. Invest in additional insurance coverage

When it comes to providing financial protection to yourself, the more the better applies. The more insurance coverage you get, the better protection you will receive. Insurance is your safeguard in potential financial losses you may incur in case of a car accident. There are many supplementary insurance protections you can secure to ensure complete protection against car accidents. 

Here is the list of recommended additional insurance coverage to secure financial protection:

  • Uninsured Motorist Insurance (UM)

Uninsured Motorist Insurance pays for the damages and injuries incurred by a driver without liability insurance. It protects you from car damages and injuries caused by an uninsured driver. UM covers the expenses for medical bills and loss of wages. It is beneficial in cases of hit and runs. In 2019, statistics showed that there were 16.3% of uninsured drivers in Colorado. A chance encounter with an uninsured driver may be out of your hand. But getting uninsured motorist insurance will save your day.

  • Underinsured Motorist Insurance (UIM)

In some instances, medical and car repair expenses are higher than the liability insurance coverage of an at-fault driver. In the event of an accident involving a UIM, you may have to shoulder the excess medical or repair expenses. To prevent yourself from doing so, it is best to get this additional insurance protection.

  • Medical Payments Coverage

In an event of a car accident, liability insurance only covers the bodily injuries and property damages you incurred to other people. The injuries you and your passengers sustained and the repair of your car are excluded from the liability insurance coverage. That’s why car owners are highly encouraged to purchase Medical Payments Coverage. MedPay along with your health insurance will pay for your medical expenses in case of a car mishap.

Medical Payments Coverage protects the driver at fault and all of its passengers at the time of the accident. It also safeguards you as a pedestrian. In general, MedPay helps you pay for medical treatment in an incident of a car collision. 

The following incidents are covered by the Medical Payments Coverage:

  • You are wounded as a passenger in someone else’s car.
  • You injure your passengers in a car accident.
  • You are injured by a car while crossing the pedestrian lanes.

Regardless of who is at fault in the car accident, Medical Payments Coverage applies in all states. It can help compensate for medical costs like:

  • Medical treatments, surgeries, or procedures
  • Rehabilitation
  • Funeral costs
  • Dental Care
  • Medical Deductibles and Copays
  • Doctor visits
  • Ambulance fees
  • Prosthetic Limbs
  • Extended hospitalization and nursing care
  • Collision Coverage 

Collision insurance covers the repair of damages from a crash with another vehicle or objects like a tree or fence. It also covers damages from a single-car accident that involves falling over or rolling. Collision coverage will cover the expenses associated with a crash mishap. Regardless of who is at fault, it will protect you from the repair expenses the collision accident will incur.

  • Comprehensive coverage

Comprehensive Coverage is also highly suggested. Cars under financing or lease are often required to have comprehensive coverage. It helps in the payment for replacement or repair. Comprehensive insurance covers damages such as: 

  • Vandalism
  • Damage from falling objects
  • Damage is done by animals
  • Natural Disasters like flood, hail, and tornado
  • Fire
  • Civil disasters (riot)
  • Theft
  1. Determine the factors that affect the car insurance rates

These are the factors car insurance companies in Colorado look into in determining the appropriate auto insurance premium:

  • Amount of coverage you want

Insurance companies offer various amounts of insurance coverage to choose from. The higher the coverage the higher the premium rates. Insurance companies offer three types of liability coverage along with additional insurance coverage.

  • Past insurance claims

History claims may increase the premium rates of your car insurance. Records of at-fault claims pose you as a high-risk driver, therefore, highly increases the chance of increased insurance cost.

  • Zip Code

Areas with high population density affect car insurance rates. Traffic congestions greatly affect the chances of car accidents, thus, increase in premium rates. Areas with high chances of theft are also charged with higher insurance rates.

  • Age

Car insurance companies often charge higher premium rates for the young and elderly. According to studies, younger drivers often possess a high risk of car accidents. The Insurance Institute of Highway Safety data shows the highest motor vehicle crash deaths rates belong to people aged 20-24. The elderly population is also likely to be involved in car accidents as they tend to have slow reflexes and visual impairment. 

  • Gender

According to IIHS, statistics show higher male crash deaths than females. Men are more likely to drive faster and are involved in high-risk driving practices. Data show driving under the influence of alcohol, not wearing a seatbelt and speeding are common causes of crash death in males.

  • Marital Status

According to the National Institutes of Health, unmarried people are most likely to be involved in car accidents, hence, higher insurance rates.

  • Driving Experience

Amateur drivers have a higher risk of car accidents. Insurance companies consider amateur drivers as high-risk, therefore, increasing insurance costs.

  • Driving Record

Your driving record says a lot about your behavior in driving. Insurance companies greatly consider your driving record in determining your premium rates. History of repeated traffic violations increases the likelihood of getting higher insurance rates.

  • Credit History

Some insurance companies take into account the credit history of the insurer. People with a high credit history usually get a lower insurance premium.

  • Previous Insurance Coverage

People who have continuous insurance coverage tend to have better rates, as insurance companies deem them low-risk for accidents.

  • Vehicle Type

Insurance companies consider the vehicle type in determining your premium rates. Several factors influence the decrease or increase of car insurance rates. The year, make and model of the car highly influences auto insurance rates. New and Luxury cars usually have high premium rates due to their value. Cars with built-in security features like airbags and alarm locks enable discounted premium rates.

  • Use of Vehicle

A vehicle used daily poses a higher chance of an accident. A higher risk of accidents means higher premium rates.

  • Annual Mileage

Low annual mileage means less driving time. Less driving time lessens the chances of accidents. Insurance companies would often offer lower insurance rates.

  • Car Insurance Coverages (UM, UIM, MedPay)

Additional insurance coverage increases the premium rates. Take in mind that a higher limit and additional coverage will surely protect you in the event of an accident. Whether at fault or not, this additional coverage will save you from hefty expenses associated with car accidents.

  1. Find a reputable insurance solutions company

It is much easier to shop for car insurance when you have a competent insurance agent to assist you. An efficient insurance agent will walk you through the pros and cons of the insurance coverage available for you. Agents will help you get suitable insurance coverage with the best premium rates possible. Find a trusted insurance company that offers a competitive price for the coverage you need. Auto-owners Insurance and ACE Limited are some of the trusted insurance companies that offer auto insurance in Denver, Colorado.

Taking into account all the guides mentioned above will surely help you to purchase car insurance that will cover all of your needs. Following the said guidelines will increase your chances of purchasing auto insurance with excellent rates. Some factors that affect the insurance premium rates such as driving record and credit history are controllable. Strive to have a good driving and credit history to avail lower premium insurance rates.

A car accident has devastating effects on everyone. It could lead to hefty medical bills, property damage, and loss of wages. Apart from the liability insurance, it is advisable to purchase additional insurance coverages to fully shield you from the liabilities of a car accident. Insurance is a way of managing the risk of potential losses. 

As of now, you may think that insurance is not beneficial and doesn’t need it. Car accidents are unforeseen events and insurance is your way to protect you from various unforeseen and unplanned financial expenses. The very person who will benefit from insurance is you. From medical costs to auto repair and replacement. Insurance coverage will compensate it all for you. 

When a car accident happens, you may deal with bodily injury, property damage, and lawsuit. You will want to avoid the additional stress of expenses associated with those. So do yourself a favor, have your car insured and get the best possible car insurance coverage for yourself. The money you will spend on medical treatments, repairs, and lawsuits will outweigh the cost of car insurance premiums.

It may be appealing to purchase minimum limit insurance but remember insurance is a protection for yourself. It will protect you from unforeseen financial expenses in case of an accident. Providing comprehensive and adequate car insurance is one of the best financial protections you can give to yourself. Paying higher premium rates because of the higher limit and additional coverage will save you a lot of money in times of an accident.Preparation is the key. Accidents come by with no notice. Call us now and be prepared. Advantage Insurance Solutions is here to assist you in providing the best and adequate auto insurance in Denver, Colorado. We offer comprehensive insurance coverage that will give value to your money. We represent diverse insurance companies that will cater to your needs. Contact us now, and our highly competent agents will assist you.