If you are asking yourself if comprehensive or liability auto insurance is still necessary for high mileage cars that are paid off, the resounding answer is "Yes, positively!" Ask yourself this question also: Can you get along without a car? Your car can still become a total loss no matter how much you do or do not owe on it; without some insurance coverage you will have nothing left toward replacement of that vehicle. Basic insurance protection depends on vehicle worth; liability and comprehensive damages are a different matter.

Some drivers believe that just because a vehicle or home is paid off, they can drop all insurance coverage. This is a worst-case decision, because accidents can always happen. Without proper insurance coverage on a fully paid-off vehicle, all accidental damage costs will come out of your own wallet. The minimum coverage for comprehensive damage should be maintained, as should liability coverage. Your responsibility when someone else is hurt on, in or because of your vehicle hitting them or their property does not end with a final vehicle payment. Liability lawsuits can involve astronomical dollar amounts you could possibly owe.

One example for maintaining comprehensive damage insurance on a paid-off car would be spring and summer hail storm damage. Yes, hail stones do fall that are as large as golf balls and baseballs. These can cause multiple breaks in glass and deep dents in metal. Large hail can even break through metal surfaces. Without comprehensive damage coverage, you bear all repair costs.

It’s wonderful to have a vehicle fully paid off, but remember to keep minimal insurance coverage in effect to protect yourself from liability claims, accidental damage and vandalism. A small monthly payment is much better than paying hundreds or thousands of dollars out-of-pocket.

When you get car insurance in Texas, any insurance company through which you obtain a policy is going to look at your profile to determine whether you’re an acceptable risk to them. What does this mean, exactly? If you’re a "good risk," according to the insurance company, you have:

A safe driving record

Insurance rates are based upon the risk profile you present to the insurance company. If you have a good driving record, you’re less of a risk to an insurance company because you’ve already shown that you’re less likely to have an accident than the average driver. This gives you lower rates. The longer you have a good driving record and no accidents, the lower your rates are going to be.

No speeding or other moving violations tickets

Even if you’re a "good" driver in that you haven’t had any accidents (or haven’t had any for a long time), speeding tickets and other tickets for moving violations show irresponsibility on your part. Follow the rules of the road, including staying within speed limits. The more you can show a sense of responsibility on the road, the lower your insurance rates are going to be. (Getting too many tickets can also mean license suspension, which will automatically identify you as a bad risk and increase your insurance rates.)

An age above 25

Older drivers generally have lower insurance rates than younger drivers do, simply because statistically, younger drivers make more mistakes and are more cavalier about their driving than older drivers are – and young men under the age of 25 are the most "risky" demographic group of all. Simply put, as a demographic group younger drivers have more accidents than older drivers do, so they are charged higher rates. The good news is, getting older improves your statistics demographically and therefore drops your rates automatically. By the time you’re 25, you should be paying reasonable insurance rates as long as you haven’t had any accidents, DUIs, etc.

Are there coastal guidelines for auto insurance?

Not really. It’s been shown that in states like Texas (where devastatingly large natural disasters like hurricanes occur with some frequency), insurance companies will simply shut down and not issue new policies on homes or cars until a particular natural disaster has been cleaned up and things are back to "normal." That’s not really something automobile owners can control, though.

The CARCO inspection

In some coastal states, there’s something automobile owners have to submit to called the CARCO inspection. What this means is that you may have to agree to have your car visually inspected for damage on a regular basis in order to get insurance. Many insurance companies for states like Texas and Florida will not insure cars until they’ve undergone that CARCO inspection and have passed.

What else should you know?

Beyond these two possible exceptions, coastal guidelines for auto insurance are the same as those for cars that are housed off-coast. If you live in Texas, you have to carry at least liability insurance on your car in the amount of $30,000 personal injury coverage per person, or $60,000 per accident. You also have to carry at least $25,000 in property liability insurance.

If your car is newer than 10 years old, it’s a good idea to also include comprehensive and collision insurance coverage. Comprehensive insurance coverage covers your car if it’s damaged in a non-accident event, such as through theft, vandalism, "falling tree limb" damage, and so on. Collision insurance covers repair or replacement of your car at its current value if you’re in an accident and you are deemed at fault. If your car is older than 10 years old, liability-only coverage is generally advised, since premiums are going to cost you more than the replacement value of your car is worth.

Colorado car insurance laws require all drivers/owners of motor vehicles to carry a minimum amount of liability coverage. If you are the cause of an accident, liability insurance will cover you for any physical property damage or bodily injury to another person that was a result of your negligent actions. If you are found responsible for the damage, your insurance will pay up to settle any claims up to the limits of your policy. There are minimum mandated amounts of coverage in the state of Colorado for both bodily injury and property damage liability.

The minimum requirement under Colorado law for property damage is $15,000. That simply means if you get in an accident that was your fault, your insurance company will pay up to $15,000 to repair or replace the vehicle that was damaged.

Bodily injury liability minimum coverage is $25,000 for any single individual injured in an accident and $50,000 for all individuals injured in an accident. If you are in an accident where 4 people are injured, your insurance company will pay up to $50,000 to settle all claims, but will not pay more than $25,000 to any one individual.

It is important to consider purchasing more than the minimum amount of Colorado auto insurance mandated by state law. Be smart and buy enough insurance to protect yourself against a personal lawsuit in the event you cause more damage than the minimum amounts cover. Any amount of damage above your insurance limits can become your personal responsibility. If you have substantial assets such as a home, stocks and bonds or anything else, you could put them at risk if you do not have adequate liability insurance.

Getting caught driving without Colorado car insurance can have very serious consequences. Colorado, and every other state, requires all vehicles and their drivers to be insured if they are responsible for causing injury or property damage to another party. Driving is a privilege and not a right and if you want to drive you need to show that you are willing to accept financial responsibility for your actions while operating a motor vehicle. Following are some of the consequences you might face if you are caught driving without insurance in Colorado.

Impound – Your car could be impounded if you are involved in an accident and have no insurance. If you are stopped for a moving violation or other infraction and have been driving without insurance for an extended period of time, your car may also be impounded.

Driver’s License Suspended – Your driver’s license may be suspended for a period of time if you do not have Colorado auto insurance. To get your license reinstated you may be required to file an SR-22 which is a rider to a standard insurance policy where the insurance company guarantees you will keep your insurance coverage in effect for a certain period of time. A second offense will result in a minimum 4 month suspension of your driving privileges and a third suspension will mean a minimum of 8 months without a valid Colorado driver’s license.

Fines – Depending upon the situation, you may be forced to pay a fine or penalty before being allowed to drive again. Generally, the more egregious you have been in neglecting to carry auto insurance, the higher the fines and penalties will be to get back in good standing and be able to legally drive in Colorado.

An educated consumer will be much more likely to get a better deal for their money. That applies to everything from shopping for groceries, buying an airplane ticket or purchasing auto insurance. In Colorado, there are numerous companies ready, willing and able to sell you Colorado auto insurance. Just how do you know which company you should choose?

There are several important factors you should consider when comparing different Colorado auto insurance companies including the premium you will be required to pay, the history and reputation of the company and how well they handle claims.

At the top of most people’s list when comparing Colorado auto insurance policies is the amount that it will cost to insure their vehicle. All companies measure and assess risk in determining the premiums that they charge. Categories of risk might include age, sex, type of vehicle, how many miles the vehicle is driven annually, the neighborhood where the car is garaged and a number of other factors. A Denver car insurance company may assign a different amount of importance to a particular category of risk than a Boulder auto insurance company and that can affect the premium they charge to a particular individual. In addition, some insurance companies are run more efficiently and can charge lower rates while others spend heavily on advertising and have more overhead costs that they pass on to their customers. Still others simply charge more because they feel it will lead to greater profits.

Shop around and get quotes for the same coverage from a number of different Colorado insurance agencies. Do not base your decision solely on the lowest price you can find.

Make sure the Colorado car insurance company you are considering has been in business for a long time and has a good reputation of being fair and honest. No one wants to find out their policy is not worth the paper it is printed on because their insurer is less than reputable.

The best way to compare Colorado auto insurance companies is to find out about their claims payment policy. You can ask an agent specifically to explain how they handle claims or, better yet, talk to some clients and ask them about their claims experience.