Collision Car Insurance Coverage

Your automobile insurance policy consists of multiple coverages that provide protection in different situations involving your vehicle. By law, Colorado requires that you carry bodily injury insurance coverage with a minimum of $25,000.00 in coverage. Because Colorado does not mandate drivers carry other coverage, you may have questions about optional insurance coverage. 

With so many options available, the car accident lawyers at Bowman Law have prepared a series of articles that discuss in depth different insurance coverage. In what follows, we will highlight the importance of carrying collision insurance coverage in Colorado. 

What is Collision Insurance Coverage? 

Collision insurance pays for repairs or replacement following a car accident with another vehicle or object. Collision insurance does not cove:

• Damage to other people’s vehicles
• The cost of medical bills
• Theft, vandalism, or damage from hitting an animal or damage from natural disasters. Those events are covered by comprehensive car insurance. 

Do You Need Collision Coverage?

Collision car insurance is not required in Colorado. Rather, this type of coverage is an optional coverage, meaning you will have to pay extra to add collision insurance to your auto insurance policy. 

That said, you should consider having collision coverage on your insurance policy. As it relates to your own first party insurance, it is a good idea to have collision coverage because it protects you when you cause an accident. Moreover, if you do not own your vehicle outright, your financer will likely require you have collision coverage even though it is considered optional. Even if you own your vehicle outright, it is a good idea, especially if there is a chance you cannot afford repairs out-of-pocket. 

Reduce the Costs of Collision Insurance Coverage? 

Many insurance companies offer various add-on options that may help you save money in the event of an accident. When evaluating your insurance needs, you should speak with your insurance agent about the following programs:

Collision Deductible

This lowers out-of-pocket costs if you are in an accident caused by an uninsured driver. If you have added this to your coverage, the insurance will waive your deductible. However, insurance companies will not typically cover hit-and-runs. Collision deductible waivers are inexpensive. It can be a good idea to add the waiver if you have a very high deductible or drive where there are a lot of uninsured drivers.

Accident Forgiveness

With this program, your insurance carrier would agree not to raise premiums after your first accident. However, not all accidents qualify for forgiveness. For example, insurers may exclude accidents with injuries or costly damages. In addition, to qualify, you must be an experienced driver with no accidents on file. Adding accident forgiveness to your auto coverage can spare you the driving points and hefty premium hikes that often follow a collision claim.

Disappearing Deductibles

Also called vanishing deductibles, some insurance companies offer this to reward drivers who do not file insurance claims. For example, we have seen policies where, for every year a claim is not filed, the driver’s deductible is reduced, typically by $50 or $100 per year.

Discounts

It does not hurt to ask if there are any other insurance discounts you may qualify for. 

Comprehensive vs Collision Insurance

It is completely within your right to decide to purchase collision coverage but not comprehensive. These are two different types of insurance. While collision insurance covers damage to your vehicle if you hit an object, comprehensive car insurance covers theft or damage from animal strikes, hail, falling trees, and other non-driving related events. 

When Can I Drop Collision Coverage?

This is a common question asked by drivers with an increasing odometer and/or a nominal Bluebook value. As Colorado drivers put miles on an otherwise old vehicle, they are probably wondering if it is necessary to continue carrying collision coverage. 

If your annual premium plus deductible equals 10% of the cost to replace your vehicle, it may be time to consider dropping collision coverage. You should not drop collision coverage, however, if you are short on money. If you cannot comfortably afford to pay to replace your vehicle on your own, you should keep collision coverage.  

Questions about Your Collision Insurance?

If you have questions regarding your collision coverage, you should speak with a qualified car accident attorney in Colorado. The attorneys at Bowman Law are standing by with answers to your questions. Contact Bowman Law at 720.863.6904 or email us for your free consultation. Our lawyers handle a wide range of personal injury cases, including Motor Vehicle Accidents. Our law firm is located in Denver and serves the Front Range including Colorado Springs, Boulder, Fort Collins, Westminster, Lakewood, and Aurora.