Colorado Auto Insurance Coverages
In 2022, 42,795 people lost their lives in motor vehicle crashes across the U.S., according to the NHTSA. Every year, there are also millions of non-fatal accidents, and while insurance cannot undo the tragedy, it certainly allows victims to receive the necessary financial support for recovery. In this scenario, understanding Colorado’s auto insurance coverage is crucial.
Colorado operates under an at-fault system, meaning the driver responsible for an accident is also responsible for covering damages. At Boesen Law, our experienced attorneys can help you prove liability and recover rightful compensation. Here, we’ll break down all you need to know about insurance coverage to protect yourself financially after an accident.
What Are the Minimum Insurance Requirements in Colorado?
Colorado law requires drivers to maintain minimum liability insurance to cover damages if they’re found at fault in an accident. Meeting these requirements not only protects you financially but also avoids serious legal repercussions. Colorado’s car insurance minimum requirements are as follows:
Bodily Injury Liability
- $25,000 per person: Covers medical expenses for injuries sustained by one person in an accident.
- $50,000 per accident: Covers medical expenses if multiple people are injured in the same accident.
Property Damage Liability
- $15,000 per accident: Covers damage to another person’s property caused by the at-fault driver.
While these minimums are required by law, they may not fully cover damages in more severe accidents, and investing in additional coverage will provide greater financial security.
Optional Auto Insurance Coverages Available in Colorado
In addition to the required liability coverage, you can opt for additional insurance policies to enhance your protection. These include:
Collision Coverage
This policy covers the cost of repairing or replacing your vehicle after an accident, regardless of who’s at fault.
Comprehensive Coverage
Comprehensive insurance addresses non-collision-related damages, such as theft, vandalism, or natural disasters.
Uninsured/Underinsured Motorist Coverage
If the at-fault driver lacks sufficient insurance to cover your damages, UM/UIM coverage ensures you’re not left with unpaid expenses.
Medical Payments Coverage
Also known as MedPay, this policy covers initial medical expenses for you and your passengers after an accident, regardless of who’s at fault.
Full Coverage vs. Minimum Coverage: What’s the Difference?
The importance of having insurance cannot be overstated. While Colorado requires minimum liability coverage, many drivers opt for full coverage to safeguard their financial stability.
What Does Full Coverage Include?
Full coverage auto insurance includes liability, which is mandatory and addresses injuries or property damage caused to others. It also typically combines collision coverage for vehicle repairs after accidents and comprehensive coverage for non-collision incidents like theft or natural disasters.
Depending on how exhaustive your package is, it can also include UI/UIM coverage and medical payments coverage.
When Is Full Coverage Recommended?
In some scenarios, full coverage is especially recommended or even required. For example, if you’re leasing or financing a vehicle, lenders typically mandate this level of protection. It’s also advisable for drivers with newer or more valuable vehicles, who may choose full coverage for peace of mind.
Additionally, drivers in areas with high accident rates or frequent severe weather should consider full coverage, as well as those whose budget couldn’t cover significant out-of-pocket expenses after an accident or theft.
How Auto Insurance Policies Impact Car Accident Claims
Your auto insurance policy significantly influences how claims are handled in Colorado’s at-fault system. The type and limits of your liability coverage determine how much the insurer pays, and without adequate coverage, you may face significant out-of-pocket expenses after an accident.
The role of insurance companies is to determine liability and negotiate settlements, but they often aim to minimize payouts. At Boesen Law, we can advocate on your behalf to ensure your insurer fairly evaluates your damages.
Role of Liability Coverage in an At-Fault System
In Colorado, the at-fault driver’s liability insurance covers the damages suffered by other parties.
Liability coverage includes bodily injury liability, which covers medical expenses, lost wages, and other damages for injured individuals; and property damage, which pays for repairs to damaged property (such as vehicles or structures).
Without sufficient liability coverage, the at-fault driver may face out-of-pocket expenses, legal action, or financial hardship to satisfy claims.
Challenges with Uninsured or Underinsured Drivers
Uninsured or underinsured drivers often lack sufficient funds to cover damages or injuries after an accident. This leaves victims relying on their own insurance to recover costs.
Additionally, pursuing compensation from an uninsured driver can be time-consuming and legally complex, often resulting in limited recovery of damages. However, a personal injury lawyer can help you navigate these challenges effectively.
How to Maximize Insurance Benefits After an Accident
To enhance your chances of receiving your insurance coverage’s full benefits, follow these steps:
- File a claim promptly: Notify your insurance company as soon as possible to initiate the claims process.
- Gather and submit evidence: Include police reports, photos of the accident scene, and medical bills to support your claim.
- Consult an attorney: A car accident lawyer in Denver will help you build a strong case and negotiate with insurance adjusters to maximize your compensation.
Understanding the Statute of Limitations for Car Accident Claims in Colorado
Colorado law imposes strict deadlines for filing claims related to car accidents, also known as the statute of limitations.
Statutory Deadline
The statute of limitations for filing a lawsuit related to car accidents is three years from the date of the incident, as per C.R.S. § 13-80-101.
It’s crucial to consult a lawyer to initiate legal action within this period, otherwise, you’ll lose your right to seek compensation.
Exceptions and Extensions
Exceptions to Colorado’s statute of limitations include cases involving minors, where the clock starts upon their 18th birthday, or situations where the injured party is incapacitated. Additionally, fraud or intentional misrepresentation by the at-fault party also extends the time frame.
On the other hand, there are shorter notice deadlines if there’s a government entity involved. Consulting an attorney early ensures you don’t miss these critical timeframes.
Secure Comprehensive Coverage to Protect Yourself – Contact a Car Accident Attorney in Colorado
Besides it being a legal requirement, having the right auto insurance protects your financial stability. If you were involved in an accident and need help understanding what you’re entitled to under your insurance policy or guidance to file a claim, Boesen Law is here to help.
With decades of personal injury law experience in Colorado, our team has helped countless families recover millions in compensation (as shown in our case results). Plus, we don’t charge fees unless we win your case!
During a free consultation, a lawyer from our team can assess your case and outline your legal options. Contact us to schedule a meeting and take action today.
