As you try to process the stress you may feel after a car crash caused by another driver, one of the things you might tell yourself is that insurance will cover the cost you incur. You will likely count on the compensation from insurance whether you have serious injuries or need to repair or replace your vehicle.
While you may have faith in the motor vehicle liability insurance system because you have always paid your premium, you may not be very familiar with how it works if you’ve never had to make a large claim before. What kind of coverage is available for drivers in Colorado and how does insurance protect them from costs related to a crash caused by another driver?
Colorado’s liability insurance depends on fault
The policies required by drivers and vehicle owners under Colorado law protect them from liability if they hurt someone or damage their property. In other words, when someone crashes into you, it will be their insurance policy that covers your losses in most cases.
The amount of compensation you receive is dependent on the coverage the other driver carries and on avoiding any implication of personal fault for the crash. In many cases, you may find yourself dealing with a driver who has the lowest amount of insurance they can legally carry.
In Colorado, that could be as little as $15,000 worth of property coverage and $25,000 worth of medical coverage for one injured party or $50,000 worth of coverage for two or more injured people.
Your insurance could help if the other driver isn’t insured
If you have substantial costs from the crash and the other driver has a minimal policy, you may need additional coverage. If the person who caused the crash does not have a current, active insurance policy, that could mean there is no direct coverage for the incident.
If you have uninsured or underinsured driver coverage, you will have protection from losses related to inadequate insurance. If you don’t have uninsured driver coverage or your costs exceed the amount of insurance available, then a personal injury lawsuit may be necessary to supplement the compensation available via insurance after a catastrophic crash.