My Move to Colorado And My Auto Insurance

Wednesday, 24 March 2021 14:25

When I finally made the decision to move from Georgia to Colorado, I had to figure out many “adult” things for the first time in my life, including: 1. Searching for a job 2. Finding a place to live 3. Buying a car that was equipped to handle Colorado weather 4. Getting (& trying to understand) auto insurance in Colorado.

Moving cross country happens to be one of the most romanticized ideas for young adults just starting off and getting their own feet out in the world. For many people when they get out of college or even straight out of high school, they want to experience life outside of where they grew up. For me specifically, that was the case.

My name is Kaylin, and I grew up and lived in Powder Springs, Georgia for practically my entire life starting at the ripe age of five years old. At the beginning of this past year my boyfriend, Jake, and I decided it was time to take a leap of faith and move across the country to Denver, Colorado. Oh, what an adventure it turned out to be. We soon realized there was a lot more to moving cross country than we anticipated. I quickly found out that the cost of living on the western side of the United States is practically double that of the east coast and the cost of moving was much greater than I had planned for. There were so many little things we didn’t financially account for while moving. The bigger expenses included the cost of the POD (for moving and storage of all our furniture), maintenance on our vehicles before making the 20+ hour drive across the country, and finding a place to live.

In addition to all of these expenses, we had to consider the region and area we were moving to as well. My 2012 Toyota Corolla had worked just fine in the streets of Georgia considering that the weather does not fluctuate much there, but here in Denver my one-wheel drive tiny car is kind of a safety hazard on these streets. So, I had to ask myself that hard question: “Should I buy myself a new car?” With that, I quickly started to look at my expenses. In particular, I looked at my car insurance expense and realized I didn’t fully understand what I was paying for with my auto insurance and that I soon would have to transfer to my own insurance off my parents’ coverage. This is where my deep dive into auto insurance began.

Auto insurance in Colorado

Through my parents' insurance, I received the basic bells and whistles. My policy included bodily injury 100/300, meaning that $100k of damages will be covered for the other driver for bodily injury/death while $300k of bodily injury/death will be covered for myself or passengers in my car. Property damage coverage of $100k was included on my basic auto insurance, which would cover property damage for another driver if the damage was caused by myself or another person driving my car. My policy also included medical coverage of $5k to cover myself, my family, or any passengers in my car with medical insurance in the event of bodily harm. Uninsured bodily injury coverage was included and if an uninsured driver hit my car, I could get up to $100k to cover the cost of my bodily injury. Lastly included on my basic insurance coverage was uninsured property damage with a $250 deductible, which means that if an uninsured driver hits me or hits my car while parked, my policy would cover the losses.

All of these policy features placed together costed around $700 every six months considering I am bundled into my parents' insurance policy. While doing this research I had to face the fact that I needed to get off my parents' auto insurance and start paying for my own.

Auto insurance Colorado

That was when reality hit me. Young adults getting on their own car insurance for the first time tend to be surprised by outrageously expensive rates. This is due to a number of factors including, but typically any driver under the age of 26 typically can expect higher rates. While doing my research on quotes for my particular car insurance, I found out that my average auto insurance policy would cost anywhere from $900-$1,200 every six months. This is substantially higher than what I am paying by going through my parents' policy, especially considering I just spent the majority of my savings on moving across the country. However, it is important for young adults to realize the true cost of stepping out on your own and taking the initiative to find out what each part of this policy consists of.

The Basics Of Auto Insurance In Colorado

Buying a new car means you will need auto insurance (it’s legally required by law). As young adults, many of us haven't really experienced shopping for insurance without the help of our parents. That is why it's so important to truly understand what coverage you have and how that coverage is going to protect you, your passengers, and your vehicle if you happen to be involved in a car accident.

There are a few main coverage options for your auto insurance in Colorado. We’ll go through a few of these options and how each one can protect you.

Liability Coverage

Auto liability coverage is mandatory in most states. As a driver, you are required to purchase at least the minimum amount of coverage required by state law. There are two components to this coverage:

  • Bodily Injury Liability - This covers costs from injuries and/or deaths that you or another driver may cause while driving your car.
  • Property Damage Liability - This reimburses others for damage that you or another driver operating your car may cause to another vehicle or other property.

Colorado’s minimum coverages that are required by law are:

  • $25,000 for bodily injury or death to any one person in an accident
  • $50,000 for bodily injury or death to all persons in any one accident
  • $15,000 for property damage in any one accident
Auto insurance in Colorado.

Coverage That May Be Required

Some states require the following types of coverage on your auto insurance policy:

  1. Medical Payments: If you, your passengers, or family members who drive the car are injured in an accident, this coverage may help pay for costs associated with the injuries. This may cover expenses relating to hospital visits, surgery, x-rays, and other medical payments you may have to make due to an accident.
  2. Personal Injury Protection (PIP): This is similar to Medical Payments coverage, as PIP may help pay for your medical expenses after an accident. PIP may also help cover other expenses incurred because of your injuries, which may include expenses for childcare or lost income.
  3. Uninsured Motorist Coverage: Reimburses you when an accident is caused by an uninsured motorist. This coverage also allows you to be reimbursed in the case of a hit-and-run.
    • Underinsured Motorist Coverage: Reimburses you for costs if the other driver lacks adequate coverage to pay after a serious accident

Optional Coverage

The coverage that is mandated by law covers the damage to other vehicles that you caused. The required coverage in each state often does not cover any damage to your own car. The following forms of coverage do protect you from costs of damage to your own car:

  1. Collision coverage: Reimburses you for damage to your car that occurs as a result of a collision with another car or object, if you are the one at fault. This coverage does not reimburse you for mechanical failure or everyday wear-and-tear, but it will cover damage from potholes or rolling your car.
  2. Comprehensive coverage: This provides coverage against theft and damage caused by an incident other than a collision. Comprehensive coverage would protect against damages from fire, flood, vandalism, hail, and falling rocks or trees.
  3. Glass coverage: This coverage protects the windows in your vehicle including your windshield, side windows, rear windows, and glass sunroofs.
Auto insurance in Colorado

It is important to note that comprehensive and collision coverage options only cover the market value of the car, not what you paid for it. This is important to keep in mind because cars depreciate in value very quickly.

Request Your Quote For Auto Insurance In Colorado

If you can no longer be covered on your parents’ auto insurance policy like me and need to find new coverage, reach out to us at Adler Insurance Group. We’ll not only help you get the protection that your vehicle needs, but we’ll also help you acquire that coverage at an affordable price point and help you take advantage of other terrific discounts along the way.

Contact Adler Insurance Group today to get your free quote for reliable and affordable auto insurance in Colorado.