One of the biggest considerations to take into account when you’re purchasing auto insurance is what your coverage limits are. Your coverage limits are the maximum amount a claim can be worth for various expenses such as medical bills and property damage, for example.
There are numerous factors that could influence what the claim limits should be for a policy in Centennial, CO from Compass Insurance. The following are three of the most significant factors influencing auto insurance policy limits:
Each state sets its own mandatory minimum coverage amount when it comes to auto insurance. In the state of Colorado, motorists need to carry limits of at least $25,000 for bodily injury. It’s also required to have at least $50,000 of coverage per accident and $15,000 of coverage for property damage.
The value of your vehicle
If you have collision coverage, the value of your vehicle should determine your needed coverage limit for this type of coverage. Your collision coverage limit should be any less than the value of your vehicle. This way, you could potentially be compensated for all of the collision damages your vehicle experiences if it is declared a total loss after an accident.
Of course, you’ll ideally want the highest limits possible to make sure any expenses resulting from an accident are covered. However, you may be limited by your budget. The higher your coverage limits are, the more expensive your policy is going to be.
You need to consider the resulting monthly premiums you’ll be required to pay for corresponding coverage limits. Then, choose the coverage amount that is affordable to you and offers the best value.
If you’d like to explore our policy limit options for insurance for Centennial, CO motorists, get in touch with us at Compass Insurance.