Handy Tips for Buying Your First Colorado Auto Insurance Policy

Handy Tips for Buying Your First Colorado Auto Insurance Policy

Buying your first auto insurance policy is big. Really big. Are you ready for it?

Most things are a little scary when you’re flying solo for the first time. After all, you’re taking a dive into the unknown without a safety net! That doesn’t change just because you’re hunting for your first Colorado auto insurance policy. Yeah, shopping for car insurance isn’t as exciting as, say, shopping for a car, but it’s just as important. That’s why it helps to known the ropes before stepping into the ring.

Types of Auto Insurance Coverage

One of the first things that every Colorado auto insurance provider you’re going to be working with is going to ask you is exactly what type of insurance you want to put on your car. That’s a great question…assuming you know what on earth they’re talking about! Pro tip: It pays to do some research into the terminology you’re going to be dealing with before you get on the phone with an agent. For now, however, let’s take a look at the four main types of insurance:

1) Liability-This is your non-negotiable, and the local authorities aren’t going to be afraid to let you know it! Liability insurance is required in just about every state and parts of Canada, so it pays to make sure yours is up to snuff. Liability is what’s going to pay the bills if you’re responsible for an accident, taking care of damages to other vehicles and personal property involved. (Yes, we know that guardrail leapt out of nowhere, but your insurer’s never going to buy it.)

With emergency room visits starting at $500-1,000 a pop and the ICU charging $5,000 per day you’re going to want to make sure your liability insurance is up to the challenge. Recommendation: Don’t go for the bare minimum, no matter how cheap your auto insurance rates might be. You’ll be thankful for it when it’s all said and done.

2) Comprehensive-If your car is stolen, is that your fault? No, of course not. But if it never turns back up you’re still going to be the one footing the bill for a new ride. That’s where your comprehensive auto insurance comes into play. Comprehensive picks up the bill for fire, theft, vandalism and “Acts of God” including, but not limited to, a tree crashing down on your car after an ice storm.

3) Collision-Your liability auto insurance coverage is going to pick up the tab for everyone else’s damages after an accident, but it isn’t going to do a whole lot for you. If you don’t want to be stuck emptying out your bank account it pays to invest in collision insurance. This will help you get your car out of the shop and back on the road as quickly as possible.

4) Uninsured-With unemployment reaching record setting peaks hundreds of drivers are electing to cruise the friendly highways without a dime of insurance coverage to their name. If you’re the victim of their short term planning you could end up spending years trying to pull enough money out of them to get your car fixed. Or, you could get uninsured motorist coverage and let your own auto insurance carrier get you taken care of.

How Much Insurance Do You Need?

It’s the age old question for any driver that’s ever gone shopping for a Colorado auto insurance policy.

How much insurance do I need, and how much is too much?

Colorado has its own ideas when it comes to how much is enough. According to state regulations you’re not allowed to hit the road without at least $25,000 per person and $50,000 per accident in bodily injury and $15,000 in property damage liability. Uninsured motorist coverage is optional. Is this all you need?

Technically yes.

Of course, if you want to be a smart driver rather than one that’s going to spend the rest of their

Uninsured motorist coverage will pay the bill if your car is the victim of a hit and run, either on the road or in a parking lot.

life paying for the balance after insurance has finished cutting the check you’re going to want to consider branching beyond the bare minimum. Most experts suggest you carry at least $100,000 in bodily coverage per person and $300,000 per accident, and you really don’t want to be out on the roads (or parked in a parking lot, for that matter) without uninsured motorist insurance. But it’s up to you.

Kicking Back with Cheap Auto Insurance Rates

It doesn’t matter how much or how little you know about insurance when you first start shopping around for a policy, you already know you want to save as much money as possible. Cheap auto insurance is the proverbial Holy Grail for insurance shoppers, but unless you know how to get it you’re always going to be paying too much.

Getting into all the ins and outs of saving money on your first Colorado auto insurance policy would take all day, so we’re not going to get into it here. (You can, however, check out our extensive collection of auto insurance articles to find out the hottest tricks for saving big on your insurance coverage.) For now, let’s leave it at this:

1) Shop around. Your first offer is almost never your best offer.

2) Keep your driving record clean. A single ticket or accident can cost you. Big time.

3) Explore your options carefully before buying a car. Some cars just can’t keep themselves out of trouble, and if your car is on the “bad car” list you’re going to be paying more for your insurance coverage no matter how good a driver you are. The Highway Loss Data Institute can show you where your car (or truck) falls on Colorado’s Most Wanted.

4) Turn your car into Ft. Knox. If it can’t be broken and it can’t be broken into, your insurance company is going to love you. Deck your car out with the latest in safety and security features and watch your auto insurance rates plummet.

5) Explore your discounts. It’s amazing what will save you money on your auto insurance these days, so don’t let your agent get you off the phone until you know exactly what discounts you qualify for.

Shopping for your first Colorado auto insurance policy can be a bit intimidating, but it doesn’t have to be. Just do your homework beforehand, and don’t be afraid to ask questions. It won’t be long before you’re cruising down the highways knowing you’ve got a good insurance policy backing you up every step of the way.

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