ExecutiveChronicles | Understanding Terms And Auto Insurance | Mostly all states, notably Colorado, mandate that drivers have car insurance. Auto insurance, or the absence thereof, is crucial in establishing which firm is responsible for what in the case of an accident, and a Montrose auto accident lawyer can help.
Insurance terminology to know
Insurance is crucial, but it can also be very challenging. Here are some definitions of some fundamental terminology related to auto insurance.
- When the insured motorist is at fault, bodily injury liability coverage covers harm to third parties.
- If you collide with another automobile or an object, your collision insurance will cover the resulting damage to your car.
- Full insurance will compensate you if your car is stolen or destroyed by fire, robbery, flooding, earthquakes, blasts, flying debris, or animals. Basically, any damage that does not involve a collision.
- No matter who was to blame for the accident, medical payments coverage will cover your medical bills, burial costs, and the expenses of your companions.
- Your vehicle’s damage to property liability insurance covers any harm it does to another person’s property.
- If you are in an accident with a negligent driver who is either underinsured or underinsured, your medical costs are covered under the uninsured/underinsured motorist policy.
The many sorts of coverage must be understood. Colorado has unique rules concerning drivers’ protection, as all auto plans are not created equal.
Colorado’s regulations for automobile insurance
In Colorado, drivers are required to carry damage to property insurance of $15,000 per incident as well as grievous bodily harm liability insurance of, at minimum, $25,000 per individual or $50,000 per accident.
Unless the insured individual expressly renounces the UM/UIM coverage in writing, Colorado insurers are obligated to provide uninsured/underinsured motorist protection in an amount equal to the bodily harm liability limitations chosen by the insured.
Drivers in Colorado are not required to get collision or comprehensive insurance. In contrast, a bank might demand the latter if the driver had a debt on his car.
Avoid compromising on insurance coverage.
Many people try to save money by carrying the bare minimum of insurance required by their state. To safeguard your valuables, purchasing more auto insurance is wise than the legal need. If you caused the collision but did not have enough insurance, the damages from an automobile accident in Colorado could be significant and swiftly deplete your savings and assets. You are liable for the remaining costs after your insurance’s coverage limits have been reached.