Most drivers understand that they must carry insurance in order to remain legal on the roadways of Colorado. However, it is important to know exactly what types of insurance you need, as well as the types of insurance that you should carry that may not be required under state law.
Every state in this country requires drivers to carry insurance, but not every state has the same requirements. In some places, states use a fault-based system where drivers file a claim against the at-fault driver for compensation. Other states operate under a no-fault system where drivers turn to their own insurance carrier regardless of who caused the incident. Colorado uses a fault-based system.
States also have varying types of insurance and minimums required of drivers. In Colorado, every driver in this state is required to carry the following:
When we look at the insurance required under Colorado law, we can see that this really is not much. This can have significant implications in the event an accident occurs, regardless of who is at fault. If you have minimum insurance in Colorado and cause an accident, you could face significant financial hardships in the event your insurance does not cover all of the expenses of the other driver and passengers injured or who sustained property damage. If their medical bills or property damage losses rise above your insurance policy limits, you could have to pay the rest out of your own pocket.
Likewise, if you are involved in an accident caused by another driver, and you sustain injuries or property damage, you may need to file a personal injury lawsuit against the other driver if your total costs go above their insurance policy limits.
Colorado law also does not require drivers to carry uninsured or underinsured motorist coverage. Uninsured coverage is intended to pay compensation in the event you are struck by a driver without insurance or struck by a hit and run driver that is not apprehended. Underinsured motorist coverage is intended to help pay any expenses that rise above the other driver’s policy limits. For example, if the other driver has $25,000 worth of bodily injury coverage, but you sustain injuries worth $50,000, your underinsured motorist coverage would kick in and pay the difference.
It may be necessary to work with a skilled car accident lawyer in Denver. If another driver caused the accident, if there is a dispute about fault, or if the insurance carrier does not want to pay a fair amount, a skilled attorney can step in and handle the claim on your behalf. A lawyer will not only fully examine the situation and gather the evidence needed to prove liability, but they will handle all communication with other parties involved.
Additionally, a car accident lawyer will also file a civil personal injury lawsuit in court to help recover any additional compensation necessary. This may be the step to take if the insurance carrier refuses to offer a fair settlement or denies the claim altogether.