5 Important Facts Every Driver Should Know about Auto Insurance

If you drive a car in Centennial, CO, you’re required to have auto insurance. Auto insurance is designed to protect you against mishaps that can occur during your travels. At Compass Insurance, we can help you obtain the right auto coverage for your lifestyle. Here are some important auto insurance facts every driver should know.

Auto Liability Coverage is Mandatory

Auto liability coverage is mandatory in most states and Colorado is no exception. Liability insurance pays for injuries and vehicle damage to other drivers in accidents that are your fault. Collision, comprehensive, and uninsured motorist (UM) coverage are optional.

Auto Policies Offer Various Types of Coverage

In addition to liability insurance, auto policies offer collision, comprehensive, UM, and roadside assistance coverage. Collision insurance covers collision damage to your car. Comprehensive covers theft and damage from non-collision sources. If you’re hit by an uninsured driver, UM coverage helps pay for your repair costs. Roadside assist covers towing and minor repairs if you have a breakdown on the road.

You Can Customize Your Auto Policy

Auto policies can be customized by being selective in your coverage. Customized coverage gives you more accurate protection for your lifestyle. It also helps reduce auto insurance costs.

Cheap Insurance Isn’t Always the Best Option

Cheap insurance may be lacking in the essential protection you need. Inadequate coverage could cost you more in the long run as you may have to pay for injuries or damages out of pocket. We don’t recommend you compromise coverage for the cost.

Auto Insurers Aren’t All the Same

Insurance companies vary in their coverage, services, and costs. By working with a reputable insurer, you’re more likely to receive quality coverage and services at reasonable costs.

To purchase the auto coverage you need in Centennial, CO, contact your Compass Insurance agent today.   

Auto Insurance Coverage Options for Centennial, CO Drivers

As a driver in Centennial, CO, you are required by law to have an active auto insurance policy. Some insurance coverage is mandatory while other insurance coverage is optional. Here is what you need to know about auto insurance coverage options for Centennial, CO drivers.

Auto insurance coverage for CO drivers include:

  • Bodily injury liability (BI)
  • Property damage liability (PD)
  • Uninsured/underinsured motorist (UIM)
  • Medical payments coverage (MPC or Med Pay)
  • Collision coverage
  • Comprehensive coverage

Bodily Injury Liability – If you cause an accident that results in a severe injury or death, bodily injury liability helps with paying for damages and other associated fees.

Property Damage Liability – If you damage someone’s property, including physical properties, such as garage doors, building, utility poles, and similar physical property, damage liability insurance covers these damage expenses.

Uninsured/Underinsured Motorist – If you are involved in an accident and the other driver does not have adequate insurance coverage, uninsured/underinsured motorist insurance covers medical expenses, and other associated fees.

Medical Payments Coverage – Medical payments coverage started in January 2009 and requires CO auto insurance agencies to offer this coverage. This type of insurance policy is not required by law, but if you do not want medical payments coverage, you must opt-out or it will be added to your premium coverage automatically.

Collision Coverage – Collision coverage handles the expenses associated with the damage done to your car as a result of a collision with another car, fire hydrant, or other objects. Collision coverage is not mandatory in CO, but it may be required by your bank if you have an active auto loan.

Comprehensive Coverage – Comprehensive coverage handles the expenses if your car is stolen or damaged by nature, such as hail, flood, wildlife, and similar instances. Comprehensive coverage, like collision coverage, is options but may be required by your bank if you have an auto loan. 

Here at Compass Insurance, we take pride in the excellent customer service we provide. Our customers are our priority. We offer a variety of insurance solutions for Centennial, CO residents, including auto, home, commercial, and other insurances. Contact us today to learn more about our company and the insurance solutions we provide.

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.

Three factors to consider regarding your auto insurance policy limits

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: 

State laws

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. 

Your budget

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. 

Should I Get My Teenager a Separate Auto Insurance Policy?

It’s perfectly normal to feel conflicted about your teen starting to drive. On the one hand, it’s great that they are experiencing more freedom and can start transporting themselves places rather than relying on you for everything. On the other hand, it’s downright scary that the kid you’ve watched grow up is now getting behind the wheel. 

Naturally, you want to do what you can to keep your teen — and your car — safe. If they have moved beyond their instruction permit and have a drivers license, they are already required to have auto insurance in order to legally drive in Colorado and other states. But should you add them to your policy or keep them separate? Fortunately, the experts at Compass Insurance are here to help! Serving drivers of all ages in the Centennial, CO area and beyond, we’re here to answer all of your questions.

Yes, You’ll Probably Want to Add them to Your Own Policy

In most cases, you’ll want to add your teen to your own policy. And if your teen is driving your vehicle (including a vehicle that you own but do not drive), you’ll definitely want to add them to your own policy.

For a more straightforward process, it’s a good idea to do this when your policy is up for renewal, or when you are looking for a new auto insurance policy yourself. Not only is it easier for a teenager to get approved for insurance when on their parent’s policy, but this will also give them more advanced coverage options.

When Should a Teen Have Their Own Auto Insurance Policy?

If your teen happens to be the sole owner of their vehicle, then it can be a good idea for them to get their own auto insurance coverage. However, it is important to discuss their options with an experienced insurance agent and be actively involved in helping them find a good policy.

Have more questions? Want to get started on either getting your teen their own auto insurance policy or adding them to your own? Contact us today at Compass Insurance or drop by our office in the Centennial, CO area. We look forward to getting your teen driver the coverage they need to be safe on the road! 

 

Combining Your Auto Insurance When You Marry

Combining Your Auto Insurance When You Marry

You combine a lot of things when you get married. You might not have known it, but you and your spouse can combine your auto insurance when you get married to save money.

Why Insurance Companies Give a Discount

Something happens to people when they get married. They become safer people. Married people get into fewer accidents than single individuals. Insurance companies value safe drivers, so they give them lower rates. You can save money by combining car insurance policies with your spouse. In some cases, you can also combine policies if you are a domestic partnership.

How You Qualify for the Discount

Rather than simply getting married, you both also need a few simple qualities to qualify for the better rates. Come talk to an agent at Compass Insurance of Centennial, CO to find out how much you both could save. You both need to have a clean driving record and no recent gaps in coverage. When you insure multiple vehicles on one policy, you can qualify for a multi-car discount. If you have separate insurers, you can move the one at another insurer to Compass, then combine them.

When You Shouldn’t Combine

Sometimes, you need to keep your policies separate. If one spouse has a poor driving record or a DUI, combining won’t get you a lower rate. In fact, it would likely raise the cost of the low-risk driver’s policy. Also, avoid combining if one spouse has had to file a lot of auto insurance claims. That could increase your premiums. Finally, if one spouse drives an expensive vehicle like a Jaguar, Camaro or Corvette.

Call or come by Compass Insurance of Centennial, CO to learn more about combining auto insurance. We can help you determine which insurance option is right for you.

What does full coverage insurance actually cover?

There are rules about how much insurance you need to drive in Centennial, CO. Your minimum coverage for an auto insurance policy from Compass Insurance will have at least

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $15,000 per accident for property damage.

You will also need a certain amount of uninsured/underinsured motorist coverage unless you waive that in writing.

Minimal Coverage Doesn’t Protect You Very Much

You can easily see that those limits are not very high and that even one bad accident with someone injured could end up costing much more money than that. When your insurance has paid out those amounts, you will be responsible for making up any difference. Your driving privileges could be suspended if you fail to pay, and it could have an adverse effect on your credit.

A full coverage policy could give you a higher policy limit, in the areas you feel the most vulnerable. You could be protected for a much higher amount.

Other Benefits of Full Coverage

Collision Insurance is not required by law but will protect you for damages done to your own vehicle after a collision with another vehicle.

Comprehensive Insurance protects you against yet more kinds of danger, such as fire, severe weather or theft.

The main difference between minimal coverage and full coverage is that minimal coverage only helps you out with liability, or what you owe if you are at fault in an accident. Collision and comprehensive coverage will help you to repair or replace your own vehicle.

If your vehicle is paid off and isn’t very valuable, it may not be worth it to get full coverage. If you want to see if full coverage could help you, please feel free to call Centennial, CO Compass Insurance today for a free evaluation and quote.

When do you no longer need collision coverage on your car?

When you have an older vehicle that is of low value, you might be better off dropping collision coverage. Colorado requires you to have liability coverage-meaning insurance to cover damage you cause in an accident. The professionals at Compass Insurance in Centennial, CO can help you decide which policies are best for your situation. 

If you are in an accident and are at fault, liability coverage will cover damage to the other vehicle. In that situation, the collision coverage would pay for damage to your car. This would also be true if you ran your car into a tree or something and had damage.  If you owe on your car, the lending company probably requires you to have collision coverage. 

If you own your car outright there is a situation where you might want to not have collision insurance. The insurance company will not pay more than the market value of the car, regardless of how much coverage you have. If your car is worth $3,000, and it sustains $4,000 in damage, you will only get $3,000. The insurance company will declare it a total loss and will pay you only the market value.  You would still get the market value if you had collision insurance, so there is a bit of a risk factor to consider.

If you choose to go without collision insurance, another option is to have uninsured motorist coverage. While coverage is the law, not everyone obeys the law, so it is possible to get in an accident with a driver who has no insurance or means to pay for the damage he or she caused. In that case, uninsured motorist coverage would pay for your car’s damage if the accident were not your fault.

The value of your car that you own outright is the key factor in deciding what coverage you need. Call or visit the Compass Insurance agency in Centennial, CO and let them help you find the coverage that is right for your situation.

Should I Add My Teenage Child To My Insurance?

Your auto insurance policy should be as comprehensive as possible. When you have a teenager in your household in Centennial, CO, it’s important to add them to the policy. This way, you know that they are covered in the event that they get into an accident or cause any kind of property damage.

Having the Coverage

Teenagers need to learn how to drive. As they go through the learning phase, they are likely going to be using your vehicle. The moment that they get behind the wheel, they should be covered by your insurance policy.

You never know what could happen. As they are learning to drive in a parking lot, they could damage your vehicle or private property that is located nearby.

Even after they get their driver’s license, they are likely going to be borrowing your car. Teenagers are often expensive to insure because insurance companies view them as high-risk. They haven’t had the opportunity to drive in every scenario, which can lead to various problems on the road.

By having them on your insurance, it ensures that you can file a claim in the event that something happens.

How to Add Your Teenager

The moment your teenager gets a learner’s permit, you will want to add them to your insurance policy. This will ensure that they have the coverage when they’re behind the wheel of your car. If they have their own vehicle, adding another vehicle to an existing policy can be more affordable than having them open a completely new policy. Compass Insurance can compare rates from multiple companies to help you find the best option for adding your teenager to your policy.

By working with Compass Insurance, an agent can work closely with you to determine what type of insurance coverage is going to provide you with the most protection in Centennial, CO.

 

What benefits do I get from full coverage instead of just liability?

Driving in Centennial, CO can be a necessity, and you may be wondering how you can save money on the insurance policy you obtained through Compass Insurance. If you bought full coverage insurance, you may be wondering if you really need it and if there are some portions you don’t need. 

Do You Still Have a Loan On Your Vehicle? 

If you still owe money on your vehicle, you won’t be able to cut down to liability only policy. Because the entity that gave you the loan still has an interest in the vehicle, you need to keep the full coverage until the note is paid off.

In fact, if you try to change your policy and your bank finds out,  there is probably a clause in your contract that gives them permission to add a full coverage policy and charge you. 

The Difference Between Full Coverage and Liability Only 

Any auto insurance policy will cover liability, with minimum coverage starting at the legal requirement mandated by law. Those limits are not very high, and if you are found liable for an accident resulting in a large amount of damage and/or injury, you will be responsible for paying the difference if your limits aren’t high enough.

A comprehensive policy offering full coverage will cover damages to your own vehicle, and can also include other important coverages. Depending on the policy, you may be eligible to get a rental car when your car is damaged or add roadside assistance. 

Getting in a crash in Centennial, CO  can be expensive. If you want to make sure you’re covered as much as you’re comfortable, call  Compass Insurance and we can answer all your questions.