Drivers in Colorado must obtain two types of liability car insurance coverage. These include bodily injury liability as well as property damage liability. If the driver causes an accident that results in bodily injury to someone else involved in the accident, the bodily injury liability insurance protects him or her against a variety of different claims. These include claims for lost wages, medical expenses, and pain and suffering. The property damage liability insurance, on the other hand, pays for damage to the person’s property. This may include a damaged vehicle as well as other items that may have been damaged as the result of the accident.
The “no fault” auto insurance law that was in place in Colorado expired on July 1, 2003. From that point forward, all policies with an effective date beyond that date are issued under “tort” law instead.
In Colorado, the minimum liability coverage that a driver must have is 25/50/25. Colorado drivers also have a mandatory coverage for underinsured and uninsured motorists. With the minimum liability guidelines in place, minimum bodily injury coverage a Colorado driver must have is $25,000 per person and $50,000 per accident. This Bodily Injury Liability insurance, or BI for short, covers the driver when he or she is at fault for the accident. It covers the costs associated with the injury or death of the other driver. It also covers the costs of the injury or death of the passengers in either vehicle as well as of pedestrians.
Colorado drivers also must cover a minimum of $25,000 per accident when it comes to Property Damage insurance, which is referred to as PD or short. This insurance covers the costs of repairing or replacing property that is damaged by the insured driver. Colorado drivers also must carry $50,000 in coverage for bodily injury of underinsured motorists.
A number of factors are used to determine the rates of auto insurance in Colorado. First, the cost of insuring the state as a whole is taken into consideration. Legal fees and settlement fees are added when coming up with this figure. With this information, the auto insurance companies determine the average rate per driver. This rate is then affected by individual differences, such as the age of the driver, where the driver lives, and the person’s driving record.
In order to register a vehicle in the state of Colorado, the driver has to present proof of insurance. This can be accomplished in many ways. First, the driver can show his or her temporary insurance card that has been provided by the insurer. The driver may also show the premium receipt or the insurance binder that was provided by the insurance agent.
The current declarations page from the insurance policy may also be presented as proof of insurance coverage. Or the actually policy may be used, as can a certificate of liability insurance policy that is issued by either an authorized agent or by the insurer.