Cheap Insurance is Great

 In Colorado Insurance Agency, Colorado Insurance Company, Colorado Insurance Professional

Cheap Insurance is Great

Cheap insurance is great…. Until you get into an accident.  The state of Colorado requires all drivers to carry minimum liability limits of: $25,000 per person, $50,000 per accident for bodily injury and $15,000 for property damage.  When it comes to insurance it is not always the best choice to choose these minimum limits of 25/50/15. What happens if you are in an accident at a higher speed where someone has to be medevac’d to the hospital at a cost of $15K to $20K?  What happens if you are in an accident where the person injured ends up in the intensive care unit, which can often cost over $10K per day?  When your insurance stops paying at $25,000, how will you come up with the remainder?

Auto insurance coverage is best explained when using a story.  Imagine for a moment that you are driving down the highway this winter and accidentally start sliding on a patch of ice.   In those split seconds, you hit the car next to you causing damage to the car and injuring the driver. The driver had several broken bones and had to be rushed to the hospital in an ambulance:  Their medical bill came to $34,000.  Thank goodness you have insurance right?  WRONG!  Since you purchased a policy with the minimum limits, the $34,000 bill exceeds the $25,000 policy limit for a single person.  You may have to pay $9,000 out of pocket.  In addition to the injured driver, the car was totaled.  Luckily, you think, it was only worth $20,000.  However, your policy provides coverage up to $15,000 meaning you have to pay another $5,000 out of pocket.  Because you chose the state minimum limits of coverage, you now have to come up with $14,000.

To protect yourself and your family, it is always better to have more coverage than not enough. You can often double or triple the level of protection provided by your policy for a few dollars per month.  Look at your policy and see if you have enough coverage.

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