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The Importance of Motor Vehicle Insurance in Collisions

If you have recently been involved in a motor vehicle accident, you probably have questions about insurance. Whether you were at fault or the victim of the crash, it is important to understand how car accident insurance works after a wreck.

How Having a Motor Vehicle Insurance Policy Helps After a Collision

Having an excellent car insurance policy is always a good idea. Not only is car insurance mandatory by law in Colorado, but it can help you avoid financial ruin.  Especially if your negligence causes serious bodily injury and property damage. Anyone can make a mistake while driving and insurance provide peace of mind in the event of a catastrophic loss. This is particularly true if you have teenagers or young adults who use your car for whom you may be liable.    

Insurance Covers the Cost of Repairs Needed for Yours or Other Impacted Vehicles

If you cause a car accident, the liability portion of your policy provides coverage for property damage caused by you.  If you have property damage coverage your policy will also cover property damage suffered by your car even if you are responsible for the damage. You may have a deductible that you have to pay in that instance.  If it is a multi-vehicle accident, property damage can be extensive.. However, if you have a good automobile insurance policy, you won't have to pay these potentially astronomical damages out of your pocket. 

Even if you aren't responsible for the accident, if the other driver is underinsured or has no auto insurance for accidents, you may need to rely on your insurance to cover the cost of repairs to your vehicle. You could always try to sue the other party to cover the costs afterward, but if they don't have savings or assets, the lawsuit may not be worth the effort. It is always best to protect yourself with adequate coverage and not rely upon others.

Insurance Covers Bodily Injury of Others or Personal Injuries You Received

You may also use your own insurance policy to cover the medical bills for any injuries people received in the crash. If you are the at-fault driver in the accident, you may be responsible for several people's medical bills if your accident resulted in injuries. Hospital treatment can be expensive in the U.S., especially if more than one person sustained injuries during the crash. In 2020, the average bodily injury claim was $20,235.

However, even if you weren't at fault for the wreck, if the other driver is uninsured or underinsured, you may need to use your insurance company to cover the cost of your medical expenses. Like the cost of repairs, you can attempt to sue the other party to recover your costs afterward, but it may not be the right choice if the uninsured motorist has few assets.

In 2019 in Colorado, approximately 16.3% of drivers were uninsured. Before lodging a claim against the party that injured you, it's best to research whether the party has the savings or assets to pay if you were to win the case. A skilled Colorado accident attorney can help you determine whether the case is worth your time.

It is critical that you purchase uninsured or underinsured motorist coverage.  This coverage will protect you when you are injured by someone with no insurance or inadequate insurance.  It has to be understood that this is a place where you have an opportunity to protect your financial well-being in the midst of a tragic accident.  It is common for people to have too little coverage for uninsured or underinsured motorist coverage. It is recommended that you purchase a high-limit policy.  Uninsured/Underinsured coverage over $250,000 is recommended.

Does All Required Insurance Coverage Include Liability Insurance?

Usually, insurance coverage includes the minimum liability insurance required by your state. Liability insurance covers the cost of injuries and damage to others when you cause an accident. Most states require a certain amount of liability insurance to comply with local laws.

The minimum amount required by the state is often inadequate to cover the damages.  For example, the minimum amount of bodily injury insurance required in Colorado (i.e., $25,000) has remained unchanged for decades.

What Are the Requirements for Automobile Insurance in Colorado?

Colorado is an at-fault state. The state requires its drivers to have a certain level of bodily injury liability insurance with a recognized insurance carrier. Colorado also requires drivers to have insurance to cover a minimum amount of damage to property if you cause an accident.

The minimum legal liability insurance requirements in Colorado are:

  • Bodily injury or death benefits for a person in an accident: $25,000
  • Bodily injury or death benefits for all people in one accident: $50,000
  • Property damage in one accident: $15,000

Of course, these are the state minimums. Since a high percentage of Colorado drivers are uninsured or underinsured, many policy owners within the state opt to protect themselves further by purchasing higher limits.

In Colorado, the costs of minimum coverage average $518 annually. Meanwhile, on average, full coverage insurance averages $2,016 per year, which is slightly higher than the national average of $1,674. Of course, these costs can vary by several factors, including: 

  • City
  • Age
  • Driving history
  • Car make and model
  • Credit score
  • Marital status

How to Determine if You Have Comprehensive Insurance Coverage

If you are unsure what falls under your liability insurance coverage, it is best to call your company or visit their website to check your current insurance status. You'll need to have your policy number on hand for the conversation. You can find your policy number on your vehicle's registration card from the Department of Motor Vehicles. Your insurance policy number is also located on the insurance card you received when you bought the insurance.

Every active driver with a driver's license in Colorado is required to carry at least the minimum motor vehicle insurance. The required limits are out of date and you should have more insurance. It is wise to inquire about your specific insurance plan. Find out what your insurance provider does and does not cover and the exact amounts covered for each category.

If you are left underwhelmed with your insurance coverage and costs, don't be afraid to shop around. People can sometimes find a better option by putting in a few hours of research. 

Hire a Lawyer When Your Automotive Insurance Doesn't Cover Accident Claims

Accidents with drivers occur daily in Colorado. Even if you are an impeccable driver with a clean driving history, you may find yourself in an accident with drivers less attentive than yourself. Hopefully, your automotive insurance will cover everything you need when this happens.

Many people find themselves suddenly underinsured when the physical damage from the wreck has been tallied. This is especially true if multiple vehicles were involved. If you suddenly find yourself in an underinsured accident situation, you may need to employ the help of car accident lawyers in Colorado

If your auto insurance doesn't cover your accident claims, you may need legal help. The knowledgeable and experienced team of Colorado accident lawyers at Mann & Maximon can help. Contact us today.

Contact Us For a Free Initial Consultation

In almost all the types of cases that we handle, contingent-fee representation is available. This means that we only get paid if and when you do. There is absolutely no cost or obligation to you for an initial consultation; we are here to help you.

Call our office at 303-991-2233 or use our online contact form to get in touch with us today.