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Auto

Think of your auto insurance policy as six separate policies. Some types of coverage are required by state law, depending on where you live. Others are optional. Consider each one and ask yourself how much you need. Each type of coverage has its own premium. Add them up and you’ve got the price of your auto insurance policy. Subtract the ones you may not need and you gain some control over the cost.

Bodily injury liability (BI)

Bodily injury liability coverage covers you if you cause an accident in which someone else is hurt or killed. Colorado requires you to purchase a minimum of $25,000 per person and $50,000 per occurrence—commonly expressed as “25/50.”

Depending on your current financial situation, you may want to consider going beyond the state’s minimum requirements. Consider what assets you have to protect and what you can afford when deciding how much to purchase. For example, many financial experts (including Main Street Insurance) recommend carrying at least $100/$300.

Property damage liability (PD)

Property damage liability coverage covers you when you damage someone else’s property. Usually it’s someone else’s car, but it could apply to buildings, utility poles, garage doors, and other physical property. Colorado requires a minimum limit of $15,000.

Depending on your current financial situation, you may want to consider going beyond the state’s minimum requirements. At Main Street, we recommend going with at least $50,000.

Collision coverage

Collision coverage covers damage to your car if you run into another car, a brick wall, a fire hydrant, or other object. This coverage is optional, though your bank may require it if you have an auto loan. You may choose a deductible on this coverage—what you must first pay out-of-pocket for a claim before the insurance kicks in.

Note: The higher the deductible the lower the premiums.

Comprehensive coverage

Comprehensive coverage covers you in case your car is stolen or damaged in ways that don’t involve a collision. Covered risks include hail, fire, theft, flood, earthquake, explosion, falling objects, and encounters with wildlife, such as deer. Comprehensive is optional coverage, though your bank may require it if you have an auto loan. You may choose a deductible on this coverage.

Note: The higher the deductible the lower the premiums.

Uninsured/Underinsured motorist (UM/UIM) coverage

Uninsured/Underinsured motorist coverage covers medical and other expenses when you are hit by a driver without adequate auto insurance. In Colorado, insurers are required to offer UM/UIM in the same amount as the bodily injury liability limits you select, though you may reject it or choose different limits. You can purchase additional coverage to pay for damage to your car if hit by an uninsured motorist, but many people instead just purchase collision and comprehensive.

At Main Street Insurance, we strongly recommend that you carry this coverage to the same amount as the BI Limits. It is very crucial in protecting yourself from uninsured drivers as well as protecting your assets and lifestyle.

Medical payments coverage (Med Pay, or MPC)

Medical payments coverage acts as primary coverage for medical expenses you and your passengers incur if injured in a motor vehicle accident, regardless of fault.

As of January 1, 2009, Colorado insurers are required to offer you $5,000 in coverage. You must opt out or the coverage and premium will automatically be added—whether you’re buying a new policy or renewing one. You can choose not to buy med pay or purchase a different amount. But, if you don’t want it you must reject it in writing or in the same way you buy insurance, for example, over the Internet or telephone. The new law also requires your insurer to hold $5,000 of your medical payments coverage for 30 days to pay for trauma bills first.


Main Street Insurance Group, LLC

  

10701 Melody Drive Suite 308 NorthglennCO 80234
303.798.0799 PHONE 866.797.5826 FAX www.main-street-insurance.com