Colorado (Co) car insurance law protects the car owners and also all the other affected parties. If you cause an accident then the Co car insurance law provides accident cover to all the people who are killed or injured. Such accident cover is known as bodily injury liability cover. For body injury, Co car insurance law provides $25000 USD for a person and $50000 USD for one accident. This law is commonly known as "25/50".
The Co car insurance law also provides property cover to people in case their property gets damaged due to your fault. This law is known as property damage liability cover. This law covers utility poles, garage doors, physical properties and buildings. The minimum cover is decided through this law. According to Co car insurance law, the limit for property damage liability cover is $15,000 USD per accident.
According to Co car insurance law, insurers have to provide $5000 USD as Medical payments cover (MPC). If you renew a policy or get a new one, the insurance cover and premium will be added automatically but you can opt out of this insurance cover. To pay for trauma bills, for 30 days the insurer has to hold $5000 USD from your medical payments cover.
The Co car insurance law also provides collision cover. If your car runs into a wall, objects, fire or car then the collision cover is used to recover the damage done to your car. To start this insurance cover, you need to first pay out the entire claim.
In case, you don’t have adequate car insurance and you are hit by another vehicle then all the expenses including medical cover comes under Co car insurance law which is known as Underinsured/Uninsured motorist cover. According to this law, if a motorist who causes an accident is not insured then you have to buy additional cover to pay for the damage.
According to Co car insurance law, the amount for Underinsured/Uninsured motorist cover should be same as the bodily injury liability cover. If Underinsured/Uninsured motorist cover is not accepted then it can be waived-off. If you have "25/50" bodily injury liability cover than you have to compulsorily opt for "25/50" Underinsured/Uninsured motorist cover according to Co car insurance law. This insurance cover provides economic as well as non-economic damage cover.
On 1st January 2008, State Legislature of Colorado passed a law for increasing Underinsured/Uninsured motorist cover. According to this law, you can change your insurance cover option without change in premium but it can affect some people or firms.
Tips and comments
According to Co car insurance law, if there is no collision and your car gets damaged or stolen then the loss is recovered through comprehensive insurance cover. This insurance cover comes into effect if the car gets damaged because of falling objects, theft, earthquake, fire, explosion, hail, wildlife and flood. You can opt out of this insurance cover but if you have an auto loan then your bank may ask for it. Opting for more car insurance is very beneficial, so if you can afford then get the best car insurance cover.