Car Insurance 

It's often easier to think of your auto insurance policy as six separate policies. State law, depending on where you live, requires some of these coverage's. Other coverage's are optional. But, consider each one and ask yourself how much you need. Each type of coverage has its own premium. Add them up and you've got the price of your auto insurance policy. Subtract the ones you may not need and you gain some control over the cost. 

Bodily Injury Liability Insurance. This is coverage in case you cause an accident in which someone is hurt or killed. 

Medical Payments or Personal Injury Protection (PIP). This coverage pays for treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover the doctor and hospital bills, lost wages, the cost of replacing services normally performed by someone injured in an auto accident and funeral expenses. A minimum of $130,000 of this coverage is required in Colorado. 

Property Damage Liability. This coverage is for when you damage someone else's property. Usually it's someone else's car, but it could apply to buildings, utility poles, garage doors, etc. 

Collision. This covers damage to your car from a collision. The collision could be with another car, a brick wall, a fire hydrant, etc. 

Comprehensive. This coverage is in case your car is stolen or damaged in ways that don't involve a collision. Covered risks include: fire, theft, hail, flood, earthquake, explosion, falling objects, missiles, riot and civil commotion. 

Uninsured Motorist Coverage. This coverage pays for your injuries when a driver without insurance hits you. Underinsured motorist coverage can also be included in an auto policy. Colorado law requires that it be offered, but it's optional to purchase it. 

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