As the Recession continues to worsen, and gas costs continue to increase again one can’t help but think about all the other necessities in our lives that may be impacted. Almost all of us have to drive to and from work, and considering what gas prices cost these days, only wish we could car-pool or take public transportation.
So the question arises, since I reside in a State that makes vehicle insurance mandatory, how can I locate the most Inexpensive Auto Insurance? How can I determine I get coverage that meets my needs when there are a lot to choose from?
1st it’s important to know the lowest coverage accepted by Law for the state you call your home. Colorado requires liability Coverage for each individual driver like most other states, the lowest amount of coverage allowed is $25,000 per person. The maximum payout for all injured parties would be $50,000 liability for a single accident. The total property damage liability for a single accident is $15,000. Meaning that you must have as a bare minimum $25,000 per person for injuries caused to another person, up to $50,000 for all parties injured in the accident you were involved in and $15,000 for damage you caused to the other individuals property.
Again these are the lowest amount of coverage by Colorado State Law. When considering Auto Insurance you should consider higher levels of coverage if you have assets to protect. In addition to considering the protection of your assets, optional coverage such as medical payments, collision, other than collision and underinsured-uninsured motorist bodily injury coverage may be a safer way to go.
The driving force for how Colorado Car Insurance rates are factored is based upon state driving records as a whole. What happens is that all the insurance companies take the cost of providing coverage for all state drivers (including claims and legal fees) and divide it between all the drivers in the state. While I would like to tell you that the cost is distributed evenly, that is not what happens.
The amount you pay as an individual driver is determined by the following:
• Your driving record
• Your age
• Where you live
• Type of vehicle you drive
Let’s face it, if you are under 25 it does not matter what state you live in, it is going to cost more when checking Auto Insurance Quotes. You could be driving a Pinto, a Viper or a Mustang GT your age works against you. Black automobiles and red vehicles cost more to insurance than grey or blue. A sports utility vehicle costs more to insure because they are more likelt to be stolen. The amount of people installing GPS tracking chips to deter car theft is beginning to become more common. It would be foolish to the extreme to steal a vehicle that can be found in a matter of minutes, wouldn’t it? Security systems also lower your auto insurance rates. Often you may find during the questionnaire you will be asked whether you will be using your automobile for pleasure or work and on average how many miles you will drive. All of these factors determine what your insurance premium will be. Obviously the more you drive, you increase your chance of having a motor vehicle accident. So do yourself a favor: protect both your assets and your wallet by comparison shopping before choosing automobile insurance.
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