Explanation of Auto Insurance Coverage in Colorado
No one intends to get in an auto accident, yet they happen everyday across Colorado, the USA and the world. The ability to hop in our car and travel where ever we want gives a feeling of
freedom that almost everyone enjoys. But with other cars and drivers on the road, our ability to avoid each other depends on every driver having the skills and will to drive in a safe manner.
Collisions happen. People get injured and cars and other property like walls, fences and buildings get damaged or destroyed when an accident occurs. This is why you purchase auto insurance. To pay for peoples injuries and to pay to repair damage to property that you destroy. Below is an explanation of auto insurance coverage this is available in the Denver area.
Liability Insurance – Coverage for others if the accident is your fault
Bodily Injury: Pays for injuries of the other people injured in the accident.
Property Damage: Pays for damaged property of others such as their cars, fences, buildings etc that are damaged in an accident that you cause.
Collision Insurance: Collision insurance coverage pays for damage caused to your vehicle in an automobile accident. Standard collision coverage will pay for any repairs up to the fair market value of your car. Collision coverage usually also comes with an insurance deductible which is the amount of money you pay toward repairs. The higher the deductible you’re willing to pay, the less the collision coverage will cost.
Comprehensive Insurance (aka Other-Than-Collision): Comprehensive insurance covers damage done to your car in some way other than a collision, such as if it were stolen or vandalized. Flood, hurricane, theft, windshield damage and fire are also events usually covered by comprehensive car insurance. Like collision, comprehensive will pay up to the fair market value of your car (less your insurance deductible). And although it’s not legally required by any state, you will probably need it if your car is financed.
Rental Car : Reimburses you for a rented replacement car for your use, while your car is in the shop for a comprehensive or collision repairs
Towing – Emergency Assistance: Pays costs to get your car back on the road it becomes disabled. Provides services for towing, jump your battery, change a tire, car break in if your keys are locked inside
Glass: Pays to repair or replace windshields or windows if vandalized or cracked from rock chips
GAP: Pays the difference in the market value of your car if it’s totalled and the market value of the car is less than the amount still owed on your loan
OEM: Replaces parts on your car (from a comp or collision claim) with Parts made by the original manufacturer of the car. Otherwise most carriers will replace with ‘after market’ parts
Liability insurance is required by the state of Colorado. Comprehensive and Collision are required if your car has lender, who wants to protect their mutually owned vehicle.
The optional coverage listed above are the most commonly carried, talk to your agent for more information.
Denver West Insurance Brokers is located in Golden CO. We service residents of Golden, Lakewood, Littleton, Arvada, Morrison, Evergreen and the mountain regions all around CO. Give us a call! 303-960-5290, Speak with one of our licensed agents today.
Note: Data and information provided on this site is for informational purposes only and should not be considered professional advice. Denver West Insurance Brokers makes no representations as to accuracy, or validity of any information on this site and will not be liable for any errors, omissions, losses, injuries, or damages arising from its display or use.