cost of car insurance

Colorado Auto Insurance: How Much Coverage Do You Need?

by Cindy Chase

In all my years of running Aspen Insurance Agency, this has always been a challenging question.  Working with many clients, I’ve observed it’s  a balancing act between protecting your families and assets versus “paying the insurance company more money.”

Here are the minimum Colorado Auto Insurance requirements:

  • Liability coverage of $25,000/$50,000 per accident for injuries caused by you to others
  • Property damage in the amount of $15,000

Is that enough?  Every individual and family situation is different. It really comes down to risk and protection of your assets.

We drive our cars every day.  Each time we pull out of our driveway, we’re trusting ourselves and other drivers. When you really stop and think about it, when you get in your car, you’re putting your life and assets at risk.

CO Auto Insurance: Understand Your
Level of Risk 

How much insurance do you need?  I always advise my clients to understand the risk or impact of the unexpected such as an accident. If you’re in an automobile accident that causes injury to others, your personal assets could be at risk.

On the other hand if you were hit and injured by a motorist that only had the minimum Colorado auto insurance state requirements, you could have significant risk for loss of income and medical bills.

When clients ask me how much coverage to buy, my answer is always as much as you can afford to protect yourself.  The first step is to evaluate increasing the minimum Colorado auto insurance coverage for liability and property damage.

Next, consider two cost effective options that are often overlooked but provide more complete coverage and asset protection, in the event of an auto accident.

Add an Umbrella Insurance Policy to Increase Protection of Your Assets

An umbrella policy is an extra layer of insurance that can pay for medical, court or other expenses you may be required to pay after basic home and car insurance policies stop.

This coverage is nominal in price for the protection it provides.  For example, a $1M dollar umbrella policy on average costs $200 per year.  This fee is dependent on the number of drivers and vehicles in your household, so the exact cost will vary.  But the point is, it’s very inexpensive coverage that provides additional liability protection for everyone in your household…should you need it.

Uninsured/Underinsured Motorist
Liability Protection…is a Must

Colorado requirements are called minimum for a reason.  The high cost of medical care and potential loss of income due to inability to work would quickly exceed the minimums.  And if the motorist has no insurance, you are at increased risk.  I advise all my clients to have this insurance.

Uninsured/Underinsured Motorist Liability Protection is necessary for your own piece of mind and protection.

This two part series on Colorado auto insurance was inspired by my own recent auto accident.  You can read part 1 here.  I’m happy to say that I am feeling much better, my car is back like new and I experienced an easy and pleasant claims experience with my carrier.  It’s not often that one gets to experience what they sell and do for a living as “the client”.

I hope that the tips and ideas I have shared help you should the need ever arise.  And most importantly I want to encourage your to review your auto policies and make sure that you are adequately covered to protect your assets.

And yes, if you would like to discuss your current auto coverage and requirements for protecting your assets, please call me at 303-777-2991.