Additional Colorado Vehicle Insurance Requirements
Additional Colorado Vehicle Insurance Requirements: Aside from the mandated state liability requirements, as of January 1, 2009, CO required that “med-pay” also became mandatory and must be offered by insurers in an amount of at least $5,000; this is also known as Medical Payments and will pay for the bodily injury of the policyholder and/or passengers involved in a traffic accident no matter which party is found responsible for being at fault. Consumers do have the option to reject such protection in writing at the time of policy inception and insurers must keep such proof of rejection for a time period of no less than three years from the effective date of coverage. It is often suggested not to reject this option since it fairly inexpensive and could be beneficial.
The state also requires carriers to offer potential customers Uninsured/Underinsured Motorist coverage and consumers also have the option to reject this option as well. However, motorists may be tempted to go without this coverage, but the fact of the matter is that there are many drivers who operate without policies and this will pay for bodily injury (up to the policy’s limits) to the policyholder and any party considered “insured” if involved in a collision with an uninsured motorist or if the cost of medical expenses exceeds the liability limits of the other party. Similar to “Med-Pay”, this add-on is relatively inexpensive and could come in handy if involved in an accident with motorists lacking policies. Residents may want to review the Colorado Department of Insurance Uninsured/Underinsured FAQ’s before deciding to decline this coverage.