Colorado is state which comprises majestic mountains and is considered to be USA one of the most beautiful and desirable places to live. With cities such as, Denver, Boulder and Colorado Springs, people from across the country come here for vacation or to live. This article will help you understand everything about car insurance in Colorado. This will make it easier for you to finding cheap car insurance in Colorado.
Colorado Car Insurance Laws
If you plan on drive a car you need to buy automobile insurance under law in the State of Colorado. All Insurance Companies have to give details of policies issued by them and renewed by them to the government so that the government can maintain a database of Insured and Uninsured Drivers. No car can be registered without showing proof of purchase of Automobile Insurance. Driving without insurance attracts hefty penalties in the State of Colorado.
The Colorado division of car insurance requires a certain guarantee regarding specific divisions of insurance that has been separated into several sub-policies namely Bodily injury liability, Property damage liability, Underinsured/Uninsured motorist, Medical payments coverage, Collision, and Comprehensive.
Bodily injury liability coverage is used to cover a person's payments if he or she accidentally hurts somebody else. Colorado auto insurance policy covers $25000 and $50000 per person in such cases.
Property damage liability coverage covers the responsible person during accident. Property is cars but may differ in the form of household, buildings etc as well. Colorado car insurance demands $15000 per occurrence.
The Underinsured/Uninsured motorist coverage covers the insurance owner if he is hit by an underinsured or uninsured. This policy sometimes turns out to be a blessing in disguise since it often covers medical bills and non - economic damages at times. Person may also opt for collision or comprehensive coverage policies which will be discussed later. The insurance coverage amount for this policy is same as minimum liability limits that ranges from $25000 to $50000.
The Medical payments coverage includes medical payments coverage and trauma bills. A person may or may not choose a medical payments insurance. If a person does not choose it, he or she may do so by rejecting the insurance in writing. According to Colorado state laws, a minimum of $5000 must be offered by the insurers.
The Collision policy covers damages to the insured vehicle should it accidentally hit a wall, other car. Although it is not mandatory to choose Collision coverage, it certainly helps during accidents. Generation of car loan by banks often require this policy.
The Comprehensive coverage policy covers the damages when a car is stolen, or in cases of non-collision. Such incidents may include earthquakes, fire, flood, falling, hailstorm, objects, or explosion. This insurance covers damages to the vehicle should it be damaged by wild animals. Both the collision and comprehensive are often opted by insurance seekers in place of the Underinsured/Uninsured motorist. They are optional where the person may choose to select a deductible insurance sum before opting for it.
Policy Decisions Should be Based on More Than Cost
Purchasing a policy with only the minimum cover legally required may be cheap but will be inadequate when an accident occurs. The state motto of the State of Colorado, 'Nothing Without Providence', is a good reason to invest carefully on a car insurance policy if providence smiling unkindly when you are on the road.
Higher liability or bodily injury and property damage premiums cover your major expenses if accident. An Uninsured/Underinsured cover will pay your expenses in case you meet with an accident and the other driver is uninsured. Insurance premium for collision insurance cover is usually required if your car is being financed.
Comprehensive insurance coverage will pay for damages caused by vandals or natural calamities. Medical Insurance cover is required because the Personal Injury Protection Payment available in no fault states is not required in a tort state like Colorado. Your health insurance premium covers accidents you can avoid duplicating the cover by waiving the purchase of automobile medical insurance.
Uninsured Motorists Fines
You cannot register a car in the State of Colorado without buying a car insurance policy. Cars can be registered only when proof is shown by way of an Insurance paid card or letter from a car insurance agent. An uninsured driver will be fined a sum of $500 for a first offence. A second offence will increase the fine to $1000. Four months of community service and an eight-month license suspension are additional penalties imposed on the uninsured driver.
Colorado Car Insurance Rates
Colorado car insurance rates average minimum prices are :
|Colorado Minimum Car Insurance Coverage||$621 - $853|
|Colorado Minimum Full Coverage Car Insurance||$1,497 - $1,715|
|Colorado Minimum Car Insurance Coverage for Young Drivers||$1,341 - $1,598|
|Colorado Minimum Full Coverage Car Insurance for Young Drivers||$2,217 - $2,462|
|Average monthly car insurance in Colorado||$51 - $205|
Colorado Car Insurance Company
Most big names among Insurance Companies operate in the State of Colorado. They are licensed by the Department of Regulatory Agencies, Division of Insurance. Every policy issued or renewed by any licensed Insurance Company should be reported to the Government. There are Insurance Companies which merely carry on the business of automobile Insurance and mutual Insurance Companies that treat the policyholder as a shareholder and pay back any profit in the form of dividend. While each Automobile Insurance Company can vary its premiums, and the basis of charging rates based on the history of claim payments, it must adhere to the law and carry a minimum coverage with regard to bodily injury and property damage.
Colorado Car Insurance Companies are regulated under the rules and regulations of the Colorado Department of Regulatory Agencies (DORA), Division of Insurance. The Division of Insurance issues licenses to Insurance Companies to carry on their business in the State of Colorado and oversees the working of the Companies within legal guidelines.
All Colorado Insurance Companies are required to inform the DORA of all policies issued by them every month. They are also required to inform the DORA of all renewals within ten days of the renewal. Insurance Companies are required to file a list of rates before DORA. These rates should follow underwriting guidelines, and the classifications made should reflect a probable effect upon losses and expenses. Insurance Companies cannot under the laws of the State of Colorado increase premiums or terminate coverage for non fault accidents without a reasonable cause. DORA maintains a list of licensed Car Insurance Companies, and you can phone the department to ascertain the credit worthiness of the car Insurance Company you have chosen.
Major Insurance Companies in Colorado
Major players in the Car Insurance Business like GEICO, Esurance, MetLife, Allstate, Safeco and American Family do business in the State of Colorado. Mutual Insurance Companies that treat the policyholder as a shareholder and pay back a portion of the profit as dividend also insure automobiles in the State of Colorado. Liberty Mutual and State Farm Mutual are well known mutual Insurance companies that insure cars in the State of Colorado. The Colorado Farm bureau Insurance Co started by protecting the unique needs of farmers and ranches and has grown into a major player in the field of car Insurance.
Selecting a Company Should Depend on Several Factors
The choice available for car insurance purchase is innumerable in the State of Colorado. Each Company varies its rates based on its claim payment history and other actuarial statistics. You will benefit by choosing the company that gives you courteous customer service and reduces your premium by giving you maximum discounts. Insurance companies that are willing to discuss the policy in detail will give you the best deal.
Government Rating Can Help you Find a Reliable Company
Most importantly when an Insurance Company gives you an excellent rate, before falling for it, hook line and sinker, check with the Colorado Department Of Regulatory Agencies Division of Insurance about the stability of the Company, the number of complaints and the service record.
Many Factors Affect Your Car Insurance Quote
Car Insurance quotes are based on information fed in by you regard your car, age, place of residence, marital status, gender, profession, driving record, credit history and attitude towards safety.
- The year make and model of your car will give the Insurance Company input whether it is an insurable asset. The ISO or Insurance Service Office has a list of cars rated on the basis of their safety. Cars are rated on a scale of 3-27 and the higher the number on the rating system, the higher the premium.
- Your place of residence determines the amount of premium.
- You live in a place with a high accident history the premium is higher.
- Some Insurance Companies regard married people as a better insuring asset than singles.
- Women are considered safer drivers than men based on statistics.
- Some Insurance Companies give professionals like teachers, lawyers and doctors discounts on their insurance premiums.
- Your driving records, the number of tickets you have been issued over the years for traffic violations, the number of insurance claims made and the number of accidents you have been involved in are vital statistics that are needed to increase or decrease your insurance premium.
One of the things that can easily drive up the cost is a bad driving record. When an insurance provider looks at a driver’s record and sees several collisions and traffic violations, then they will know that the driver is a high-risk driver, and his premiums will accordingly be more expensive. Not all apparent high-risk drivers have bad records. Young first-time drivers who had just acquired licenses to drive have no record at all, but because of their inexperience, their insurance policies will always cost more than that of an experienced driver. One frequent example is a teenage male driver. Insurance companies consider even experienced men to be higher risk, but because teenagers tend to be more reckless drivers, insurance automatically costs more for teenage males than teenage females. Older, senior drivers are also high-risk according to some insurance providers, and their insurance may cost more.
Car that a driver has can also determine how much he will pay for insurance. A sports car is usually quite expensive to insure, because they tend to cost more and will potentially allow the drivers to be engaged in more high-risk behavior. If a driver owns a car model that is statistically more likely to be stolen, then his insurance rates will be higher. (Insurance policies usually cover the owner for theft as well as collisions). If a driver has recently purchased a car and is still making payments on it, then he will most likely have to purchase the maximum insurance coverage available. If one were to purchase a sports car and be in the process of making payments, his insurance will be even more expensive. Coverage that can be added to car insurance is medical coverage, provided that the driver does not already have health insurance. This, while certainly valuable, will also drive up insurance costs.
Ways to Obtain Cheaper Coverage in Colorado
When efforts are made to get cheap car insurance, many drivers tend to sacrifice coverage as well. Remember that saving money should never equate to agreement of lowering the quality or adequacy of car insurance coverage. Never settle for cheaper car insurance quotes when it means reduced or inadequate coverage. The high level of protection and peace of mind that you get from coverage with sufficient coverage is way more important than saving money for the meantime.
If you are to agree with an affordable car insurance rate but with compromised coverage, you are putting your assets and your savings at risk of being wiped out from unexpected road accidents and traffic-related mishaps in the future.
8 Ways to Get Cheaper Car Insurance Rates
Multi-car and Multiple Policies
If your household has two or more cars with multiple drivers, the most practical thing to do is to enroll all of them under one vehicle insurance policy. To further reduce the car insurance premium rate, you may also choose to enroll you homeowners insurance together with your car insurance. This is yet another multi-car policy that can guarantee consumers at least 10% discount on their premium payments annually.
It is also good to know that with multi-car discounts, policyholders gain the ability to manage their payments for multiple cars, thus enabling them to make one single payment for both. Aside from being cost-efficient, multiple policies and multi-car policies are time-savers too!
Good Driving Record
A spotless driving record should not only be the source of pride for you to share with friends and family, but can also save you money. If you have been driving for many years with no record of moving violations and traffic-related accidents, then consider yourself lucky as you are most likely entitled to cheap car insurance discounts with your current insurer. If you do not see any change on your premiums year in, year out despite your outstanding driving history, then you should raise this issue with your insurer. Just like all car insurance companies, they are required to give you discounts in exchange for being a good driver for many years.
Selecting the Right Car Can Reduce Your Rates
Buying a moderately priced car after researching cars that are considered by Insurance Companies as an insurable asset will reduce the insurance premium. This is because the model of the car would have undergone crash tests based among others on Insurance Company guidelines. Easy to maintain and easy to repair cars are looked upon favorably by Insurance Companies when reducing Insurance payments. Cars fitted with safety devices like automatic seat belts, anti lock brakes and airbags will reduce the Insurance premium. Anti theft devices like alarms and electronic locking systems make the car an insurable asset.
Install Security Systems into your Vehicle
A lot of car owners think that adding security devices in their vehicles is a pure waste of money. You should consider investing on safety and security equipment as they are meant to save your life, that of your passengers, and individuals outside the vehicle. In addition to being crucial in ensuring your safety and that of others, security devices are known to significantly reduce premiums.
Drive Less to Save Cash On Insurance
It is true that a vehicle is not a luxury but necessity. It can transport people from one place to another in an efficient and quick manner. But have you ever considered taking public transportation? Although private cars provide freedom and luxury to drivers, there are cases that it isn’t the most practical tool to go around. This is especially true if you have expensive car insurance premium payments. If you use your car to go everywhere all the time- regardless of distance, you insurance company will charge you more for your habit. If it is possible for you to take public transportation in combination with occasional driving, insurance companies are most likely to lower down your insurance rate in the long haul.
Add a Second Driver To Your Car Insurance Policy
This is a money saving tip that a lot of policy owners tend to forget. Adding a second responsible driver onto your car insurance policy, even if they will not be driving your vehicle, will successfully reduce the average risk which results in reduction of car insurance premiums. Second drivers that feature flawless driving record will enable you to enjoy great discounts. Basically, individuals who are considered as low risk drivers can help in driving vehicle insurance costs down.
Maintain Good Credit Rating
You may be wondering how a good credit score can affect your car insurance premiums. The assessment of car insurance providers is that people who enjoy good credit are more likely excellent drivers too! Remember that a policy holder’s credit rating is used by insurance companies when calculating premiums. You started your car insurance agreement with a not-so-good credit score you may choose to improve it through time. Let your insurance company know once you have improved your credit rating so you can be awarded with a discount accordingly.
Get Rid of Unnecessary Coverage for Older Vehicles
If you own a car that is five years or older, you will need to take out several types of coverage from the policy. Collision and comprehensive are two types of cover that you can already live without when driving an old car. Mostly because insurance companies will find it cheaper to replace an old car with a new one about accidents. It is difficult to find parts for old cars, thus replacing old, totaled cars has been the tradition of car insurance companies. Aside from this possible benefit, taking out collision and comprehensive will enable you to pay cheaper premiums to your insurance company.