Colorado Auto Insurance Companies

If you’re living in the Centennial State, then you may be trying to find cheaper auto insurance to help you save money. Whether you’re trying to offset the cost of annual ski passes or just want to eat out more often, lowering your auto insurance premiums is an excellent starting point.

Follow these tips to make the search easier and help you find the right insurance plan for your needs and budget.

Always compare auto insurance quotes by using a FREE tool like the one above. Simply enter your ZIP code to start your search!

Go Above the Minimum

Colorado requires that drivers have $25,000 liability coverage for individual injuries in an accident and $50,000 for total medical damages in a single accident. You also need to have $15,000 in property damage liability. However, this may not be enough to effectively protect you.

Imagine that you glance at the radio for a split second and cause an accident. This can happen to anyone, and you need to ensure that your insurance coverage levels will be high enough to cover the damage.

Given the high cost of medical care, $25,000 per person may not be enough. Additionally, most newer cars cost well over $15,000. The insurance company is only required to pay up to the policy limits. You may be held personally responsible for any balance over and above that amount. It doesn’t cost much more to increase your coverage levels, and it can help protect your important assets and income in the event that you face a lawsuit after an accident.

According to USA Today, the minimum recommended coverage levels are actually much higher at $100,000/ $300,000 for medical expenses and $50,000 for property damage. Depending on your individual situation, you may choose to go with even higher coverage amounts.

Protection from Others

In a perfect world, everyone would obey the law and carry insurance. In an even better world, everyone would be able to afford more thorough coverage and higher limits. However, the world is far from perfect. In 2003, it was estimated that 32 percent of drivers in Colorado were uninsured.

In 2011, USA Today estimated that roughly 15 percent were on the road without insurance. While the problem is improving, it’s not going away. The most distressing part is that it’s ultimately the victims who pay for the accident when you’re dealing with an uninsured or underinsured motorist.

The first problem is that insurance companies expect the person at fault to pay for the accident. If they don’t have the private funds or insurance to cover the damages, then you can wind up paying on your own. Even if they do have liability coverage, it only covers your medical bills and property damage.

You still need to address the pain and suffering, lost wages, rental car fees and other expenses associated with an accident. If you invest in uninsured and underinsured motorist protection, then you’ll have the coverage you need. It costs a few dollars a month more to invest in this protection, but it’s worth it for the additional peace of mind that you’ll receive.

This coverage is automatic in Colorado, and it’s available in the same amounts as your personal liability levels. There is no need to sign up for it separately. You can only opt out in writing, but you should strongly considering keeping this coverage to ensure that you have the protection you need.

Automatic Medical Payments

Effective January 1, 2009, insurers who are licensed to do business in Colorado must offer consumers $5,000 in medical coverage. It is automatically added unless you opt out of this rider.

In addition to turning down the MPC completely, you can also choose to invest in a higher coverage amount. If you have excellent medical insurance and believe that you won’t need this coverage, then you must opt out of it in writing.

Otherwise, the premiums will appear on your bills. It’s important to note that this coverage is offered with every renewal, so you’ll have to renew your opt-out paperwork if you don’t want the extra coverage.

Before deciding whether to accept or decline this coverage, keep in mind that some health insurance companies may not cover injuries that another person or agency may be liable for.

It may take some time to get your health insurance to cover your claims after an accident, and this coverage can provide you with an important cushion. Opting out may save you a little, but the coverage may be well worth the extra expense if it’s only a few dollars.

If you lack health insurance, this coverage is probably in your best interests financially and for peace of mind.

Lowering the Rates

There are some ways to lower your rates in Colorado, and that makes it easy to put extra money in your pocket every month. According to ABC News, these tips represent the smartest moves for getting your
premiums lowered.

• Drop the comprehensive coverage on older cars – Once the car is paid off and the value falls to less than a few thousand dollars, it may be worth it to lose the comprehensive insurance. Be sure that you have money set aside to cover repairs or replacement if something should happen to your car.
• Bundle up – Insure all your cars on the same policy, and consider putting your home with the same company. As you look at different providers, see what other types of policies they offer. Bundling your ATV or motorhome in with your daily commuter can lead to attractive discounts as companies try to let you know that your business is appreciated.
• Maintain a clean record – Insurance companies will take a look at your driving record, so it pays to obey the law and avoid moving violations. The longer you go without any accidents or tickets, the more likely you are to earn special discounts for being a safe driver. Don’t be afraid to ask the company if they’re giving you a discount if you’ve already established a clean record.
• Up the deductible – Agreeing to pay for some of the damages after an accident will reward you with lower rates. Just going from $500 to $1,000 can result in substantial savings. Be sure to set some money aside in case you have to file a claim and need the funds.
• Confirm all information – As you’re putting information together for quotes, make sure that everything is accurate. Your age, marital status, driving distance and area you live in can all make a difference in your rates. Double check your information before submitting any online applications. You may also want to confirm the information with your existing company so that you’ll have an accurate basis of comparison when you start looking at other quotes.
• Shop around with other companies – Online comparison sites make shopping around for better rates easy. All you have to do is enter the information once and then wait for the quotes to roll in. You’ll avoid the hassle of sitting on hold and repeating your information multiple times. Another benefit of using online comparison tools is that the agents calling you know that you’re going to receive multiple quotes. They’ll want to put their best foot forward by mentioning all of their discounts and offering their best rates.

Some Homework Required

Finding the right premium is only half the process. Once you’ve selected a handful of companies that fit your budget, it’s time to go a step further with some private research.

Check their financial rating with Moody or A.M. Best. See what other customers have to say about them by checking with the Better Business Bureau for complaints or problems.

Take the time to speak with friends and family who use that company to see how they rate with customer service and processing claims. You may decide that it’s worth a few extra dollars a month to work with a certain company because of their improved service and expanded options.

When it’s time to find a new insurance provider, start by making a list of what you need for coverage. The state minimums will keep you legal, but they won’t adequately shield you in a lawsuit. You also may decide that you want additional coverage like collision and comprehensive. Before you opt out of uninsured motorist plans or the medical coverage, consider the pros and cons of this move carefully.

The money you save isn’t usually worth the extra risks you’ll assume. After shopping around for the right quotes, take some time to look into the companies to find the one that will treat you right and provide you with the service you deserve.

Simply enter your ZIP code into the FREE tool below to start shopping today!