Motorists in Colorado should be made aware that it is a legal obligation to purchase auto insurance coverage. The state has a number of minimum requirements in place and these must be factored into all car insurance quotes. However, it should also be noted that there a series of additional policy features available that can be included within a tailored insurance plan to help provide optimal coverage. The benefits of extra insurance can be essential to the peace of mind of Colorado residents. Before looking into the complex world of auto insurance quotes, motorists are advised to sit down and determine exactly what they need from a new policy.
Insurance companies establish their premiums and the type of policies they offer on a basis of risk. The higher the chance a carrier has of having to make a payment in the event of an accident, the higher a premium is likely to be. When car insurance quotes are provided by these companies, a certain number of factors will be taken into consideration.
Drivers with DWI or DUI convictions will usually face inflated premiums while younger drivers in the 16 to 24 year-old age bracket will also be penalized because of the current accident rates that arise amongst this particular group. Those with multiple claims, poor driving records and bad credit histories can also expect expensive auto insurance quotes.
On the flip side, female drivers can expect beneficial treatment from their insurance carriers. Even though they are involved in as many accidents as their male counterparts, they tend to be involved in low impact collisions so damage to their vehicles, or those of third parties, usually result in lower repair costs. Motorists with an excellent driving record, a good credit history or certificates in advanced driving will also benefit from lower insurance premiums. When deciding on the type of coverage required, motorists may be able to secure cheaper car insurance quotes from companies that specialize in producing preferential policies for high-risk drivers.
The type of vehicle being driven can also have a significant effect on auto insurance quotes. As well as determining the type of coverage required, motorists can also use their choice of vehicle as a means of securing cheaper auto insurance. An old vehicle with high mileage and a relatively low market value will not need the same type of detailed coverage as a newer model with outstanding loans secured against it.
Furthermore, young drivers looking at car insurance quotes for the first time should also be aware of the lower repair costs associated with older vehicles. Even though the insurance companies will be aware of the increased chances of a young motorist being involved in an accident, they will respond more kindly to a vehicle that will cost less to repair or write off.
Colorado is a Tort state and because of this, motorists must be aware of the fact that any individual found to be at fault in a road traffic accident will be financially responsible for injuries sustained by third parties as well as damage to their vehicle or property. The minimum mandatory levels of auto insurance in Colorado are $25,000 worth of bodily injury liability per person, $50,000 worth of bodily injury liability per accident and $15,000 of property damage liability.
Additional Insurance Features
Although the minimum levels of mandatory auto insurance will allow road users to operate their vehicles legally, there are a number of other features that can be included within most car insurance quotes and they need to be carefully considered before any purchase is made. Personal injury protection is one of these features and ranks as one of the most important extras of all. Even if the policyholder is found to be at fault for an accident, personal injury protection will cover their medical or funeral expenses as well as those of any other passengers travelling in the vehicle when the accident actually occurred.
Collision damage coverage is another preferential feature that can be incorporated into auto insurance quotes. This type of protection covers the cost of repairs to a vehicle belonging to an at-fault policyholder and can save a fortune on repair costs for just a small rise in premium outlay.
One of the most frustrating aspects of being involved in a road traffic accident can arise when the at-fault driver is either uninsured or underinsured. Coverage can be purchased to allow for this type of eventuality and settlements will be provided on behalf of a policyholder for sustained injuries and property damage caused by illegal motorists. The growing numbers of motorists who use their vehicles illegally within the state of Colorado have made this particular add-on one of the most popular insurance features of all.
Choice of Insurance Company
Although the benefits of detailed policies should be factored into all auto insurance quotes, it is also important to consider the reputation and performance of the different insurance companies offering coverage. The best choice of company usually comes down to previous performance, expectations in the level of customer service they provide and their financial stability. Company ratings can be found through the Colorado Department of Insurance and those with anything less than an excellent record are best avoided.
The benefits of reviewing separate policies should never be underestimated and this is another important factor when comparing car insurance quotes. Even though the majority of carriers will provide the basic minimum levels of coverage within a prospective deal, it should always be remembered that the terms and conditions of a policy will vary greatly from company to company. While some motorists will simply opt for the cheapest possible price, the more prudent consumer will look for a policy that provides an effective balance of coverage at an affordable price. This is the only way that true value-for-money auto insurance quotes can be obtained and those who make a purchase on the basis of price alone will usually be left disappointed if they ever need to make a claim.