The differences between recovering from an accident with insurance as opposed to without are drastic and could be life-changing. Insurance coverage is required for vehicle use; driving without insurance violates state laws. It is prudent to have insurance coverage even for wealthy persons. The ramifications of getting into an accident are large and long-lasting.

Recovery without Insurance

1. There is a fine for not carrying insurance coverage on a vehicle that is driven.
2. The person at fault may bear all expenses related to the accident, including property damage and personal injury.
3. It may be necessary to pay for repairs immediately.
4. Your driver’s license may be suspended for a year.
5. It may be necessary to file aSR-22 financial responsibility form.
6. Future insurance rates may be double or triple for up to three years.
7. Court appearances and possible legal expenses may result.
8. You must try to collect from other driver’s insurance company if they are at fault.

Recovery with Insurance

1. Damages are paid for less the deductible amount.
2. Repairs can be made right away.
3. THe insurance company negotiates with the other insurance company on your behalf.
4. Rates may go up, but not as high as if you had no insurance.
5. There is no penalty for a lack of insurance.
6. Thee is no need to file a SR-22.

Without insurance, you risk possible bankruptcy if you are at fault and are sued for damages and injuries. You will suffer from increased insurance rates for years after, and finding an insurer will be more difficult. Breaking the law will have its own repercussions, including a driver’s license suspension. This could affect your ability to get to work and earn an income. Medical injuries are very expensive and, without insurance, you are liable for those expenses on your own.

Always consult with your insurance agent to determine the best insurance plan for your situation.

The state of Colorado, like every other U.S. state, has drafted several requirements that potential drivers must meet before they can get a license. One of these requirements is that Colorado drivers must have a legitimate Colorado auto insurance policy that meets several minimum standards. By Colorado state law, all licensed Colorado drivers must carry a car insurance policy that includes the following coverage amounts:

1. Bodily Injury Liability — Bodily injury liability is that portion of a car insurance policy that pays for any injuries the driver causes in an accident. In Colorado, a licensed driver must have automobile insurance coverage that will pay at least $25,000 per person and $50,000 total for all persons involved in each accident. Since medical expenses and so forth can exceed these amounts, and since the total per occurrence coverage may be insufficient to pay damages for everyone involved in the accident if more than two people are injured, it is highly recommended that your Colorado car insurance policy have higher coverage limits.
2. Property Damage Liability — Property damage liability covers damage to other vehicles and property that may be your fault in the event of an accident. An acceptable Colorado auto insurance policy that can lead to licensure as a driver must have a coverage limit that will pay at least $15,000 per accident.
3. Uninsured/Underinsured Motorist Coverage — This portion of an automobile insurance policy will cover your injuries and related expenses if an uninsured or underinsured motorist hits you with his or her vehicle. Colorado law does not actually require drivers to buy this coverage from Colorado auto insurance companies, but these companies must at least offer uninsured/underinsured motorist coverage in amounts equal to bodily injury liability coverage. Drivers can then decline it in writing.
4. Medical Payments Coverage — Colorado auto insurance companies by law must offer $5,000 worth of extra medical payments coverage, but drivers are not required by law to accept it.