Comprehensive Insurance Coverage Explained

Your auto insurance policy consists of various coverages that protect you in different situations relating to your vehicle. By law, Colorado requires all drivers to carry a minimum of $25,000.00 in bodily injury insurance. However, Colorado does not require drivers carry other coverage. You may be curious what optional coverage is important to carry in Colorado? The car accident attorneys at Bowman Law have prepared this article to discuss what it means to have comprehensive insurance coverage.

What is Comprehensive Insurance Coverage?

Comprehensive insurance is the portion of your car insurance that protects your car in situations where it is damaged or totaled due to events considered outside of your control. Comprehensive insurance can cover the costs of:

• Vandalism;
• A tree falling on your vehicle;
• Car fires;
• Water damage;
• Hail damage;
• Theft.

Comprehensive car insurance can also help pay to fix a car that was wrecked when striking an animal. While this type of coverage is often dubbed the “other than collision insurance,” running into a wild animal while driving is generally considered a situation outside of your control and therefore falls under comprehensive coverage.

Comprehensive coverage does not cover normal wear and tear or any mechanical issues. Additionally, comprehensive coverage does not cover losses due to fraudulent activities. If you represent to your insurance carrier that your vehicle was stolen, when it was not, or you claim you hit an animal, when you actually hit a tree due to fatigue, your insurance company will probably find out and deny the claim. Further, criminal charges may be brought against you.

If one of these things happens to your car, it can trigger your comprehensive insurance coverage. If the damage falls within your policy, your insurance company should cover the costs. They will pay to repair the damage or replace your vehicle.

Comprehensive car insurance is not required in Colorado. However, you should consider carrying comprehensive insurance policy. Because first-party insurance protects the person paying the insurance premium, people want it. Because third-party insurance protects other people from the person paying the premium, people want to pay as little as possible for it. As a result, Colorado law has minimum requirements for third-party auto insurance. These requirements force people to have at least some before they drive in Colorado.

If you do not own your vehicle outright, your financer will likely require you have comprehensive insurance coverage even though it is considered optional coverage. Even if you own your vehicle outright, it is a good idea to consider adding comprehensive insurance coverage, especially if there is a chance you cannot afford repairs out-of-pocket.

How Can I Reduce my Car Insurance Rates?

There are aways to reduce the rates you pay for insurance. As it relates to this conversation, you can lower the cost of your comprehensive coverage by choosing a higher deductible plan. The deductible depends on how much you want to pay for comprehensive coverage in your premium. The lower your deductible, the higher your premium, and vice versa.

Another way to lower the costs of your comprehensive coverage is by asking about other car insurance discounts, such as bundling home and auto or adding multiple vehicles to the same policy. You can also ask your insurance company about adding a car security device. Research shows that, adding anti-theft alarms and locks, GPS tracking systems, and stolen vehicle recovery systems like LoJack may cut comprehensive premiums by as much as 25%.

When Can I Drop Comprehensive 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 comprehensive coverage. The rule of thing is that if your annual premium plus deductible equals 10% of what it would cost to replace your vehicle, it may be time to considering dropping comprehensive coverage. One caveat to that is that you should not drop comprehensive coverage if you are short on funds. If you cannot comfortably afford to pay to replace your vehicle, you should keep comprehensive coverage. 

Contact our Colorado Car Accident Attorneys

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.