In Colorado, collision insurance is one of those things you don’t know you’re missing until it’s too late. All too often, drivers are facing the aftermath of an accident, looking to restore their losses, but realizing they don’t have the coverage or means to do so.
This is a bad place to be as your vehicle is important for many aspects of your life. Getting around for errands, social events, and work are just some of the core aspects affected by not having a vehicle. But the right Colorado collision coverage can help you get back on the road quicker and for less.
Costs are rising for both labor and parts. After an accident, if you have liability coverage, you’ll have protection to help restore the property damage to another party’s vehicle, but you’ll still need to pay for restoring your own out of pocket, which is why collision coverage is so important.
Since 2005, Freedom Insurance Group has been working with top-rated insurance carriers to provide our clients with affordable solutions that protect their finances and property. Learn more about how to find the right collision insurance in Colorado, save money, and the ways you are protected.
Do I Need Collision Insurance in Colorado?
Colorado collision insurance provides protection in the event of an accident with another driver or object. In the state of Colorado, drivers are not obligated to carry collision insurance coverage and are allowed to determine their desired level of protection.
However, there are certain terms and conditions that may apply to drivers who lease their vehicles or have outstanding balances. Furthermore, it’s important to remember that may also offer protection against hit-and-run accidents, but this is dependent on the circumstances surrounding your damage.
A common mistake some drivers make is seeking out collision insurance after an accident. Unfortunately, this is not possible. In order for you to be covered by your policy, you’ll need to have collision coverage in place before suffering your loss in order to be protected.
What Is Collision Insurance in Colorado?
Colorado collision insurance provides drivers with protection following an accident to restore the damage to their vehicles. This means if you’re in an accident, it doesn’t matter who caused it, all that matters is that you have coverage to restore your vehicle or replace it when necessary.
Every driver must have liability coverage to remain financially protected and legal in The Centennial State, but this type of policy won’t help you restore your own property. Liability policies restore the damages of another party, making collision an important policy for helping you avoid major financial hurdles after a wreck.
$417.14 is the average cost of repairs for drivers in Colorado when accounting for parts and labor, according to CarMD. If this figure feels like a lot, that’s because it is. Save for the exception of Connecticut, this average puts CO as the second most expensive state in the country for repairing a vehicle.
Because this is an average, it’s important to remember that while many have cheaper repairs, there are also many with much more expensive repairs to contend with. The cost of living is rising thanks to many economic factors and that includes inflation.
These factors are hitting auto repair shops and drivers are paying more as a result. For these reasons, it’s important to speak with your insurance agent to determine whether or not collision coverage can help you mitigate your risks.
What Does Collision Insurance Cover for Drivers in Colorado?
Auto policies can have many different coverages, with each protecting you in its own unique way. Collision insurance in Colorado is there for your vehicle. Not the damages that another party is dealing with, you have liability coverage for that, no, this protection focuses on you.
Car repairs are expensive, as is replacing your vehicle after a wreck. Here are a few examples of how a collision insurance policy can help you restore your vehicle:
- After an accident between you and another driver.
- In the aftermath of a collision causing you to crash into something, such as a tree, mountain, fence, or building.
- A single-vehicle accident causes you to flip or fall down while driving your vehicle.
Note, while collision insurance can help you repair or replace your vehicle if you have a note, your note will still need to be paid. For these financial risks, you’ll need gap insurance. However, collision is there for you and can still help you get back on the road in your vehicle or another, depending on what makes the most sense for your situation.
Colorado Collision Coverage Cost and Your Deductible
The cost of auto collision coverage comes down to a variety of factors. They all revolve around risk. If you have more risk factors as a driver, you’re going to pay higher premiums as a result, because carriers are looking to manage their own risks. Here are some common factors all auto insurance companies assess:
- Your age when enrolling as well as your gender.
- Your driving record and claims history.
- The age and condition of your vehicle.
- The amount of coverage you need to enroll in.
- Your location and other personal factors including your credit score.
Carriers are going to assess each of these factors and more, but every brand looks at them differently, causing differing premiums as a result. This is why it’s critical to shop around and compare different brands, but in terms of collision coverage, your deductible is another imperative factor that can’t be ignored.
Your collision deductible is your responsibility following an accident. Before you can receive reimbursement for your repairs from your insurance carrier, you’re going to have to pay your deductible and then your carrier will provide compensation.
The reason your policy’s deductible is so important for determining premium lies in the fact that you’ll have a lower monthly premium to contend with if you have a higher premium. Likewise, you will pay higher car insurance premiums if you choose a lower premium.
A key word to remember here is “choose” because your collision deductible is something both you and your carrier agree to at the time of your enrollment. Most commonly, you can choose between a $500 and $2,000 premium that comes in increments of $500.
For example, if you choose a $500 deductible and have repairs equating to $4,500, you’ll need to come up with the $500 out of pocket before your carrier pays the remaining $4,000.
However, this is an important consideration because if you are unable to pay a higher deductible, the lower premium may not be the best factor to consider. Coming up with $500 is easier than $2,000 out of the blue for most drivers. Before setting your deductible, weigh all of your options and speak with a licensed agent to help determine your best course of action.
It’s also important to note that typically, the coverage limit for your Colorado collision insurance policy is determined by the actual cash value (ACV) of your vehicle. This value is calculated as the cost of repairing or replacing your vehicle, minus the depreciation it has incurred.
Comprehensive, Collision, and Full Coverage for Colorado Drivers
Because all drivers must have liability coverage according to Colorado driving laws, this coverage is necessary for everyone. But for additional forms of coverage, you’ll need to seek out additional forms of protection.
A comprehensive coverage insurance policy is going to help you protect against the things that can destroy your vehicle outside of getting in an accident. Think, trees falling, wildfire damage, flood damage…things of that sort of nature.
Collision is there for you after a wreck and together, these three coverages can be combined into what’s known as full coverage auto insurance for better protection and even savings. Drivers that do enroll in full coverage achieve their financial responsibility, protect their vehicle on and off the road, and protect their finances.
For drivers who are leasing or purchasing their vehicle via a loan, full coverage is almost always required as a term of the contract. These coverages provide a better layer of protection, which is important to outside parties when they are involved in the operation or purchase of your vehicle.
It’s tempting for many drivers to avoid Colorado collision coverage or any other protection beyond the bare minimum. After all, the premiums are cheaper, so why not? But in the long run, not having a financial safety net in place could mean saving a few bucks today only to owe several thousand later.
There are plenty of weather-related perils and restoring your vehicle after an accident is always a challenge. Overall, it’s important to look at the full picture and determine your level of risk in the process. Additional coverages such as collision auto insurance can help you save money and get back to normal.
Should I Get Colorado Collision Insurance?
Whether or not a collision policy is right for you comes down to personal factors. For example, if you have an older vehicle or the financial means to spend large sums of money to restore or replace your vehicle, perhaps this coverage isn’t the best option. But if you have a newer vehicle or can’t afford to restore your vehicle, you may want to explore your options.
Furthermore, it’s important to note that you’re also going to get back on the road faster if you have a collision policy. Rather than saving up to cover rising labor and part costs, you’ll simply cover your deductible, and begin your restoration process.
If the idea of spending $500 to $1,000 or even $2,000 is worrisome, imagine paying the full amount. This is why when working with the right insurance provider, you can find an affordable, responsible balance between your deductible and monthly premiums.
When To Drop Collision Insurance in Colorado?
It can be beneficial for drivers in Colorado to drop their collision coverage, but it’s important to know when to do so. Here are a few considerations you’ll want to mull over before forgoing this coverage:
- If you own your vehicle, it’s your choice. For drivers that still have a loan or are leasing a vehicle, almost all of such agreements require auto collision insurance as a term of the loan or lease.
- Drivers with vehicles that have a low book value may also consider dropping collision insurance. Similarly, if you’re looking to purchase a new vehicle after an accident, then having protection in place to replace or repair your vehicle may not be necessary.
Ultimately, you’re going to have to gauge your risk tolerance and financial health before making a decision. But if you do forgo coverage, it’s important to remember that you’ll need to restore or replace your vehicle after an accident out of your own pockets.
How To Find the Best Colorado Collision Insurance
Over 100,000 accidents occur in Colorado annually, further highlighting the need for protection. Having Colorado collision coverage is advantageous protection because it’s an affordable route to help protect you from large financial losses necessary for restoring or replacing your vehicle.
Furthermore, if you’re looking to get discounted coverage, a collision policy can help. Remember, with full coverage auto insurance, you can combine the protection of liability, collision, and comprehensive coverages into a single, stronger policy available for a lower rate.
Comparing all of your options is your best bet as each carrier will price coverages differently and as you can see, there are many options and considerations to go over. If you’re looking to maximize your savings, you’ll need to compare discounts, coverages, and prices among many different carriers.
To save time and money, the team at Freedom Insurance Group is here for you. We work for you by representing several top-rated carriers. This allows our experts to pinpoint the best option for your needs at the lowest price available.
For even more savings, we can also bundle your coverage with the right homeowners insurance coverage to protect your home and auto for less. Get a free online auto insurance quote or contact our agents today to learn how we help our clients save an average of 40% on their coverage.