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Collision coverage is optional for Colorado drivers. However, each driver should carefully consider the facts about collision coverage to decide whether or not he is likely to benefit from purchasing it. Although it can seem like opting out will keep your expenses lower by minimizing your monthly insurance bill, it does not necessarily save you money over time.
Collision Coverage Uses
Collision insurance covers the damage to your vehicle that could result from an accident with another car or from hitting an object. Drivers who need to repair or replace their cars after such an incident may rely on their collision coverage.
It’s an unfortunate fact that not all drivers obey Colorado law. Some don’t carry liability coverage even though it is required by law, and others may participate in hit and runs. If you’re in an accident in which you are not at fault, but the other driver does not have insurance that covers damage to your car or the other driver cannot be identified, your collision coverage could come into play and cover your repairs.
What to Consider When Making Insurance Buying Decisions
If you are still in the process of purchasing your car by paying off a loan, your lender can require that you have collision insurance. This is a common requirement as lenders want to protect their investments and avoid suffering from losses if the items securing the loans are damaged. Although collision insurance is not required by law, it can be required by your lender. This is an agreement that you should honor, and one that benefits you as well. You don’t want to find yourself in a situation where you are still paying off a loan for a vehicle you are unable to drive.
If you own your car, then you should consider your vehicle’s value, your financial situation and other considerations in order to decide if collision coverage is right for you. Vehicle owners whose car carries a high value are more likely to opt in to collision coverage than those whose vehicle is an older model with a lesser value. Contact us today and an independent agent in Lakewood will help you evaluate your needs and determine of collision coverage is right for you.