Why you may need more than basic auto insurance coverage

In order to drive a vehicle or to register a vehicle in Colorado, you must have the required auto insurance coverage. That is liability coverage that protects other drivers from you and an accident that you might be responsible for. At All-Star Insurance Brokers Inc in Aurora, CO, we are independent insurance agents and we provide our customers with personalized insurance services. We can answer the questions you may have about basic coverage and if it is the right option for you. 

Basic auto insurance coverage

In Colorado to drive a vehicle, you need basic insurance in the amount of 25/50/15. That pays out $25,000 for the first injury in an auto accident you are responsible for and a total of $50,000 for all injuries in any one accident,  with an additional $15,000 for damage to property. If you have few assets, this might be enough coverage, but if the expenses for the accident go higher than that, you could be left responsible for paying them out of your pocket. 

Additionally, if you have a car loan or lease your vehicle, you will be required to have coverage on your vehicle itself. The lender or the leaser wants their investment protected.  

If you own your vehicle outright, is basic insurance a good option? Only if your vehicle has almost no value or if you don’t use it for all your activities every day of the week. If you have the cash to repair your vehicle if it was damaged in an accident or to replace it if it was stolen, then you can get away with just the most basic auto insurance. If, however, like most of us, you count on your vehicle and don’t have lots of available cash, then collision and comprehensive insurance are important. 

Contact All-Star Insurance Brokers Inc in Aurora, CO to talk about your auto insurance needs.