Is Auto Insurance Required in Colorado?

For a lot of people in the Centennial, CO area, owning a car is a necessity. When you have a car in this area, it will be a lot easier to get around the Denver metro area. If you are going to have a car, no matter how often you drive it, considering your insurance needs is important. There are several situations when auto insurance is required in Colorado. 

When Driving on Public Roads

One situation when having auto insurance is required is when you are going to be driving your car in public. Similar to other states, those in Colorado need to have liability auto insurance whenever they are going to use public roads. When you have this form of auto insurance, it is going to allow you to have coverage to pay restitution if you were to cause damage during an auto accident.

When Taking Out a Loan

The majority of people that purchase a vehicle today need to take out a loan to finance the purchase. As long as the loan is outstanding, you are going to need to have auto insurance. Auto loan providers will want you to have this coverage as it ensures their collateral is covered and protected. This way, if your car is stolen or damaged, you will at least have enough coverage to pay off the loan.

Having a car in the Centennial, CO area is very common. When you do get a car in this area, choosing the right auto insurance policy is a big decision. Due to the challenges that come with this decision, working with Compass Insurance is a good idea. The team at Compass Insurance can help you to find an auto insurance policy that works for you based on your needs.