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Colorado Insurance Laws: Do you have the Right Coverage?

Car insurance is mandatory in Colorado. Colorado law on car insurance changed in 2003 when the state changed to a fault-based system from a no-fault system. Even more requirements were added in 2009 for drivers, namely, a mandatory $5,000 in medical payments coverage.

Many of the other changes made to Colorado car insurance requirements were made to help prevent claim abuses and reduce the cost of insurance premiums for drivers in the city. The ‘tort’ or fault-based system requires that fault must be established before a claim is paid by an insurance company.

According to data released by the National Association of Insurance Commissioners, the average cost of auto insurance in Colorado was $777. This is way below the national average of $841 and far below the most expensive state, New Jersey, which had an average expenditure of $1,254 in annual premiums.

Colorado Insurance requirements

The state requires all drivers to have liability coverage at the least. This ensures that the other party and their property will be compensated in an accident that is your fault. According to insurance-comparison site, CoverHound, the minimum coverage for car insurance in Colorado should include:

Bodily injury coverage of $25,000 for each person involved in the accident
Bodily injury coverage of at least $50,000 for each accident the motorist is involved in
Property damage coverage of $15,000 for each accident

Additional car insurance

Having insurance coverage meeting the minimum requirements of the law in Colorado will save you from being arrested for inadequate insurance. However, your insurance may not provide you with adequate coverage in case of an accident. Therefore, it’s important to consider the following car insurance options.

Uninsured/Underinsured motorist coverage

While car insurance is a mandatory in Colorado, several drivers still drive without auto insurance. Figures released by the Insurance Research Council estimate that 16.2 percent of motorists in the state are uninsured. This is slightly above the 12.6 percent national average. The scary thing about not having this coverage is you never know when you’re going to get in an accident, let alone an accident with someone who’s underinsured, or uninsured altogether. As you can probably guess, if someone isn’t willing to pay an insurance premium to protect their financial means, they probably don’t have much financial means to protect in the first place, thus leaving you destitute in the event of an accident, regardless of fault. Bottom line: uninsured/underinsured motorist coverage protects your expenses in this situation.

Medical Payments Coverage

Due to the aforementioned legislation passed in 2009, insurance providers are required to offer motorists $5,000 in med pay coverage as part of their insurance coverage. This is offered as part of every car insurance policy, and can be adjusted in $1,000 increments. You however, have the choice of opting out, but you have to send a rejection form. You can also choose to up your coverage to as much as $100,000.

Collision coverage

Liability coverage ensures that the other party’s expenses are covered in the event you cause an accident, but what about damage to your own car? Collision coverage takes care of any damages to your car regardless of who’s at fault. The insurance also covers you for damage caused by hitting other objects with your car, such as a tree, or streetlight.

Comprehensive cover

This ensures that you are covered for any damage that is caused to your car that doesn’t involve a collision (e.g. fire, falling objects, flood and hail). It also provides cover for the loss of your car through theft and other perils such as explosions.

If you purchase your car through a loan, your lender may require you to take out a comprehensive coverage policy. You can choose to have a higher deductible in order to reduce the cost of your premium.

Cost of violations

There are various penalties set by the state to ensure that motorists have adequate insurance. You may be penalized for failing to provide evidence of insurance or for purchasing inadequate insurance. Some of the penalties and fines include:

A minimum fine of $500 for violations
The addition of 4 points to your driver’s license
The suspension of your license for up to 8 months
Community service

It is important to understand your state laws and your own financial situation when choosing insurance. Your policy should not only meet state law requirements but your personal requirements as well. If it doesn’t, then what’s the point of having it in the first place?

This is a guest post.

30 Day Project Update – January

Misc

For those who don’t remember–or are just tuning in–I am doing a 30 Day Project every month this year, sometimes two. For the month of January, I am doing two projects. I am waking up at 5AM every day, and I had planned to read to my kids every night before bed.

Waking up hasn’t been that difficult. I’m tempted to snooze the alarm, but I haven’t done that yet. My routine has been to wake up at 5, watch or read the news until I am fully awake, have breakfast, get ready for work, read all of the websites I follow in Google Reader, then get the kids ready. Until this month, my routine was to get up at 6:30, rush to get ready, rush more to get the kids ready, head out the door. This has been more relaxing and it let’s me start my workday fully awake, which wasn’t happening before. I’m hoping to get some writing time in there and next month, exercise time. The interesting thing is that I haven’t adjusted what time I go to bed by much, so this has actually added 90 minutes to my day.

It’s been interesting. I’m dead tired at 9PM, but I’m surprisingly wide awake by 5:30. It hasn’t been nearly as hard as I had feared. I’m looking forward to spring, when I can greet the sunrise.

Reading hasn’t gone as well. At the beginning of the month, I told the girls I would read to them every night. We started out wonderfully. Then, the real world came in uninvited. I had a meeting at school that ran late. My son’s wrestling season started. Things just kept getting in the way of a bedtime story. The solution? We modified the deal. It’s not a bedtime story any more. I am reading to the girls whenever there is time. I may not be home at bedtime every day, but I am certainly home at other times. We’re making it happen, even if it’s not exactly as planned.

It’s just a demonstration of the old rule: Life is what happens when you’re busy making other plans. A small amount of flexibility has turned a potentially failed goal into happy family time. It’s still a win.
How are your resolutions progressing?

Link Roundup

Misc

Doctor appointments, speeding tickets and too much work. That’s what this week has been made of.

Finance links:

Why do the non-politician folks who want taxes raised think a fund for voluntarily paying extra is stupid? If they were sincere, they’d be contributing to that from the start. As it is, it’s just a demonstration of either hypocrisy or a looting spirit.

Paying off your Visa by charging it on…your other Visa doesn’t accomplish anything for you or for Visa. Even if you are GM and Visa is the federal government.

My wife and I are thinking of starting a potluck/boardgame night. Boardgames are a cheap way to spend a fun evening.

Misc links:

The iFixit Blog. Dedicated to teaching you how to fix your own gadgets.

I am not only a geek, I am a Halloween geek. The Stationery of Horror is full of want.

The Pareto Principle works. Even at work. I get 80% of my value from the time I spend writing blog posts. Err. Nevermind.

Repair Plans, Appliances, and Rancid Meat…Oh, My!

Finance, Life

: Image via Wikipedia

We recently had our annual barbecue. (For the purists, I am Minnesotan. Barbecue means “cooked over fire”.) Due to massive scheduling conflicts, it was a bit smaller than normal; only about 20 people came. At least 10 other people RSVP-ed that they were going to make it, but didn’t. Grr.

Naturally, we had food for everyone said they would be there and enough for half of the people who didn’t say anything, since Minnesotans don’t RSVP well. That translates to a lot of leftovers. No problem. After all, leftover ribs are hardly a punishment.

Sunday morning, we woke up to find that our refrigerator was happier at room temperature than the standard “cold”. We didn’t know it at the time, but the defrost unit was borked, so the cold air couldn’t circulate from the freezer to the refrigerator. Bye-bye leftovers. Hello, Mr. Repairman. We needed an excuse to clean out the fridge, anyway, but not at the price of my beautifully seared meat! (Sadness strikes.)

Monday evening, the repairman came out, worked for 2 hours and left a functional refrigerator and a $240 invoice in his wake. Thankfully, we are on the appliance repair plan through the gas company. We pay $26.40 per month to cover repairs to our range, water heater, furnace, drier, sewer main, and refrigerator. The first four items are standard, the final two are options that cost extra.

We originally got on the plan for the sewer main. We had a tree whose roots grew into the main and clogged it every year. A backed-up sewer main is a crappy way to wake up. Getting that snaked to the street cost $200 per year. At the time, without the refrigerator, the plan cost about $12 per month. One $200 call-out more than paid for the plan for the year. That was easy math. Now, our 20 year old refrigerator has been repaired twice in the last year, giving us $500 worth of repairs for $316.80. I would like to take this time to thank all of the people with reliable appliances for subsidizing my repairs.

My furnace, drier, and range are all reasonably new and shouldn’t need repairs any time soon, but the refrigerator and sewer main have paid for the plan themselves, several times over.

Should you get a similar plan? If your covered appliances are more than 4-5 years old, I would consider it. If they are more than 10 years old, I wouldn’t hesitate at all. Repairing quality appliances is cheaper than replacing them, especially when the repair cost is paid monthly and subsidized.

Do you use a service plan?

10 Ways to (re)Use Shopping Bags

Finance, Parenting

: Image by publicenergy via Flickr

When I go shopping, I don’t bring my own grocery bags…mostly because I’m not a hippy. I do tend to double-bag my groceries just so I can bring more shiny plastic bags home to play with. What do I do with them, you ask? I’m glad you asked, because that is why I am writing this post. Thank you for cooperating.

Here are my favorite 10 things to do with shopping bags:

Garbage bag. When I’m cooking, I hang a shopping bag on the drawer handle where I’m working, so all the scraps can go straight into the trash. I just slide the onion skins or pepper cores off the counter right into the bag.
Garbage bag II. Why buy small garbage bags for that tiny can in the bathroom? A plastic shopping bag works just as well.
Pooper scooper. Instead of buying some gadget or even a little roll of bags, just tuck one of these into your pocket when you take the dog for a walk. Instant poop removal.
Paint brush saver. When you are painting, if you have to stop for the night, wrap your brush in a plastic bag and put it in the refrigerator. It will be ready to use in the morning, without have to clean it or pick out dried paint flakes.
Halloween mask. Draw a lipstick mouth on the bag, pull it down and you are an instant “bag lady”. Seriously, this is bad advice. Don’t put a plastic bag over your face, no matter what some jerk on the internet says.
Power-strip water-resistor. I go a bit crazy decorating for Halloween. Right now, there is a lighted path, 2 coffins, a few full-sized monsters, 30-40 tombstones, and over 100 skulls in my yard. Some of that is animated. I wraps power strips and extension cord connections in plastic bags, then duct-tape the bag-seams. I’m not an electrician, or a code-compliance officer, so don’t take this as advice, but it has worked well for me.
Recycling bin. This requires paper bags, not plastic, and it makes me a bit of a hippy. I keep a paper bag next to the garbage can just for the recycling. I keep another handy just to use to collect junk-mail for my primitive alternative to a paper shredder.
Dirty laundry. I’ve got 2 kids in different stages of potty-training. When fit hits the shan, so to speak, the dirty/wet clothes go into a bag that I conveniently keep in the diaper bag. I knot that sucker tight and the scents and stains don’t get all over the stroller or the car.
Dandelion torture chamber. If you’re the kind of person who likes to roam around your yard with a scissors, cutting the heads off of dandelions while they are still pretty, there is no better place to store the mutilated remains of your victims than a shopping bag from Target. Show those other weeds what happens to trespassers! I wish I was making this up.
Car kits for kids. Before we go on a trip, we have the kids fill up a small bag with books and toys to keep themselves occupied for the drive. This isn’t recommended if your kids have to taste everything they touch, but it’s been a simple-yet-elegant solution for us.

Do you use shopping bags for more than just a way to transport clutter from the store to your house?

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