By law, a majority of states require that their drivers carry an auto insurance policy. Auto insurance doesn’t just protect you against financial destitution, it takes care of car repairs, medical bills and your peace of mind. Because no two states have the exact same auto insurance policy requirements, it’s a good idea to know what your state requires. As a Coloradan looking for Colorado Springs auto insurance, referencing New York or Maine’s insurance guidelines won’t help you. To get the right auto insurance package for your state, check out CoverHound’s guide today.
Colorado Auto Insurance Carrying Laws
According to the Rocky Mountain Insurance Information Association (RMIIA) Colorado law requires drivers to carry auto liability insurance, including bodily injury liability (BI), property damage liability (PD) and uninsured/underinsured how the numbers breakdown:
When an accident occurs, neither vehicle nor person experiences the same amount of injury or property damage. What may cost you $100 out of pocket for a cosmetic repair might cost another driver $700. This is why companies like the Insurance Information Institute (III) and the Department of Motor Vehicles (DMV) recommend that motorists pick up more auto insurance than their state requires. You never know how much an accident is going to cost you.
The Cost of Auto Insurance
The III found that on average, Coloradans spend $473.55 a year on liability auto insurance. When drivers tack comprehensive and collision coverage onto their policy (again, as is recommended) it comes to $777.74 a year. Divided over 12 months, your monthly premium would come to $65. Paying $65 a month for hundreds of thousands of dollars in protection is an investment, not a money eater, and here’s why.
According to the National Highway Traffic Safety Administration (NHTSA) 32,675 people perished in auto collisions in 2014, with 90 people dying in accidents every day, and another 6,400 people sustaining minimal to life altering injuries. The RMIIA reports that the average liability insurance claim for bodily injury was $15,443. That’s more than what the minimum liability insurance policy can cover, and if you’re on a tight budget, that extra $400 has the power to break the bank. The truth of it is, without a security package like auto insurance, we’re vulnerable. Unexpected expenses come out of nowhere, and when we don’t have the funds to pay for repairs or hospital visits, we’re at the mercy of our bank or credit union. Not only this, but once our credit score is deemed unsatisfactory, our premiums will rise—regardless of our flawless driving history.
Money determines a great many things in our lives. But, if we take precautionary measures to protect ourselves, we can avoid the headache. Here at CoverHound we help you find affordable auto insurance packages that will protect you after an accident. Click here now to see what we can do for you.
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Insurance shopping simplified
