Laws and Regulations Concerning Policyholders in Colorado

No matter where you live, having a good vehicle insurance policy is important. It's no different in Colorado, where heavy snow and icy roads can make driving a difficult task. Unfortunately, finding the right protection is not always easy. It takes some time and effort on your part, but we're here to help! If you're shopping for quotes in Colorado, consult this helpful state guide before making your purchase!

Colorado Auto Insurance Minimums

Did you know that each state is responsible for coming up with their own laws in regards to minimum auto coverage amounts? In this state, state law requires a minimum of $25,000 per person for bodily injury and $50,000 per accident for bodily injury. As far as property damage goes, the minimum allowed is $15,000 per incident. While maintaining at least the minimum amount of coverage will keep you legal on the road, it probably isn't sufficient for most drivers. According to most auto policy experts, having at least $100,000 per person and $250,000 per accident is a much better standard.

Despite the snowy weather, which can cause difficult road conditions, auto premiums in this state are very much affordable in comparison to other states. Currently, the state's average cost ranking puts it almost directly in the middle of the pack at #23. The average policy, including comprehensive and collision coverage, is less than $800. Considering the average premiums for some states are well over $1,000, residents have reason to appreciate their moderate costs.

What Affects Your Rate?

For most drivers in Colorado, or any state for that matter, the main concern is their auto premiums. While everyone wants the lowest rate possible, you need to know the factors that go into determining your costs before you can improve it. Here's a look at some of the most crucial factors that affect your premiums:

  • Possible the most important factor in determining the amount you will pay is your driving record. Obviously, those with excellent driving records tend to qualify for the best prices. If you've had more than a few car accidents, you can probably expect to pay top dollar for your policy.
  • Your gender and age also play a significant role in coming up with your rates. According to prominent insurers, young males tend to be more accident prone than any other group and thus receive the highest premiums. Overall, females of all ages pay slightly less for vehicle protection than males.
  • Finally, another important factor that will impact your costs is the type of vehicle you drive. Expensive vehicles or those that are more prone to severe accidents typically have higher insurance costs. Your vehicle's safety ratings may also play a part in determining premiums.
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