Colorado uses the tort system. This means that drivers who cause accidents in Colorado are responsible for all of the damages and injuries incurred. People who are injured in an accident may sue the driver at fault in order to obtain compensation. Because of this, many insurance companies suggest that Colorado drivers obtain more the the minimum amount of liability insurance required by state law.
Read more: Best Cheap Car Insurance Options in 2016
Colorado drivers must meet minimum liability insurance requirements in order to stay legal on the road. Drivers in Colorado must possess an insurance policy that will pay at least $25,000 when a single person is injured in an automobile accident. In addition, these drivers must also carry at least $50,000 in coverage to pay for injuries incurred in accidents where more than one party is injured. They must also obtain a policy that provides at least $15,000 when drivers who are at fault in accidents damage property. People who drive rental cars in Colorado are not exempt from these requirements. Drivers whose insurance policy or credit card does not provide coverage for rental cars are required to keep a copy of their rental agreement with them while driving.
State laws in Colorado allow insurance companies to use personal credit histories when they determine the insurance products and premiums that they offer to consumers. Colorado residents who want to obtain cheap car insurance rates should make sure that they make payments on time. This will help them maintain a good credit score that can help them get cheaper rates.
Drivers in Colorado do not have to carry coverage that protects them when they are hit by an uninsured or underinsured motorist. However, state law mandates that all insurance companies that operate in Colorado must offer this type of coverage. These companies are also required to offer collision coverage.
Read more: 10 reasons to take out life insurance
Insurance companies in Colorado have the right to revoke a consumer’s insurance policy if they have not paid their premium on time. Because of this, it is important that Colorado drivers always pay their premiums before they are do. They are not given a grace period in which they can bring their account up to date. People who have a history of late payments may be charged higher fees. In addition, Colorado drivers whose insurance coverage has lapsed will have a difficult time getting a new insurance policy.
Drivers in Colorado are able to exclude certain family members from their auto insurance policy. This is commonly done when consumers have a person in their family with a poor driving history. People who exclude family members with poor driving records from their policies can often get cheaper insurance premiums. However, Colorado drivers should keep in mind that the person excluded from their policy should never drive the vehicle insured.
Colorado law also prevents most drivers from canceling their policies in the middle of a term. However, insurance companies can cancel policies if the insured party has not kept up with their premiums. They may also cancel policies if they find out that any of the information that the driver has stated on a claim or application is inaccurate. Drivers are able to cancel their insurance policies if their licenses have been suspended or revoked. Colorado drivers who cancel their insurance policies early will usually have to pay a penalty.