All drivers in the United States should have valid auto insurance. Having the minimum mandatory coverage will ensure that you will not be out of pocket in the event of an accident, and it will give you peace of mind. If you have recently been involved in a car accident but are confused about the type of coverage that you have in place and what you need, you should make sure that you understand the basics first.
Owners of cars in the state of Colorado are required to carry liability insurance that covers property damage and bodily injury to other parties. The following is a brief overview of the types of coverage available and what this means in practical terms when you are involved in an accident.
Colorado, as well as almost every other state, has minimum mandatory coverage requirements in place. This means that you need to insure the car that you own against the costs associated with the injury or death of another party. You will also need to get insurance that covers the reimbursement of property damage that occurs as a result of a car accident.
Personal Injury Protection (PIP)
For added peace of mind, you may have also purchased PIP insurance. If you see that this is present on your insurance coverage, it means that you have the right to gain back reimbursement for the medical costs and other financial damages that you or other passengers in your car were subject to.
Uninsured motorist coverage
There are unfortunately cases in which an uninsured motorist causes an accident or a hit-and-run driver flees the scene. This can mean that you are unable to gain back the damages that you deserve. Having uninsured motorist coverage can protect you from this type of scenario.
If you have recently been involved in a car accident and you are struggling to understand the terms of your car insurance coverage, it is important that you conduct independent research and do not automatically trust the word of your provider.