You might already understand how auto insurance operates, but are you familiar with the various types of car insurance available? If you’re looking for auto coverage, it’s crucial to know the different types and what they cover to find the right policy for you. Here are some basic car insurance types, along with an explanation of how they work and what they cover.
Liability Coverage
Liability coverage is legally mandated in Colorado, ensuring that any damage your vehicle causes to another person, vehicle, or property while driving is covered. To legally drive in the state, you must maintain at least the minimum required coverage:
– $25,000 per person for bodily injury
– $50,000 per accident for bodily injury
– $15,000 per accident for property damage
As an agency, we strongly recommend carrying at least $100,000 per person, $300,000 per accident, and $100,000 for property damage.
Collision Coverage
Collision auto insurance covers the cost of vehicle repairs after a car accident, regardless of who is at fault. It also extends to property damage both inside and outside the car, including damage to trees, buildings, and other objects. Collision insurance typically includes a provision for replacement, which provides funds to obtain a vehicle of similar market value if your car is declared “totaled.”
Comprehensive Coverage
Comprehensive coverage is another main type of auto insurance, covering the repair or replacement of a vehicle that has been damaged or stolen. This type of insurance also covers glass and windshield repairs. Natural disasters are a common reason for utilizing comprehensive auto insurance.
