Collision Insurance Coverage Explained

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. But what about other coverage? With so many options available, the car accident lawyers at Bowman Law prepared this article to discuss 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 cover damage to other people’s vehicles or the cost of medical bills. Moreover, such coverage does not pay out on claims involving theft, vandalism, or damage from hitting an animal or damage from natural disasters. Those events are covered by comprehensive car insurance.

Collision insurance coverage is not required in Colorado. Rather, collision insurance coverage is an optional coverage. If you are interested in adding collision insurance coverage to your policy, you will have to pay extra. That said, you should consider having collision coverage because it protects you when you cause an accident. Moreover, if you do not own your vehicle, your financer will likely require you to 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.

How Can I Reduce the Costs of Collision 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 $50.00 or $100.00 per year.

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 funds. If you cannot comfortably afford to pay to replace your vehicle, you should keep collision coverage. 

Contact our Colorado Personal Injury Lawyers

Our Colorado personal injury lawyers understand the importance of assisting clients with all damages that result in a car accident. Our client-first approach ensures your needs are at the forefront of everything we do. We pride ourselves on transparency, integrity, and clear communication, guiding you through each step of the legal process. From initial consultation to the resolution of your case, we will guide you through the process. Bowman Law will alleviate the stress of legal proceedings so you can focus on your recovery. With a proven record of success, we are dedicated to securing the compensation you deserve.

If you or a loved one has been injured due to someone else’s negligence, do not face the challenges alone. Please send us a message or call us at 720-526-0298 to schedule a free case evaluation. Remember, you have one chance at attaining full and complete justice, and we are here to ensure you seize it. Let Colorado’s top-rated personal injury lawyers fight for your rights, protect your interests, and deliver the justice you deserve. We serve clients across Colorado’s Front Range and beyond, including Denver, Colorado Springs, Boulder, Fort Collins, Westminster, Lakewood, and Aurora. Call us now and take the first step toward reclaiming your life.