Defining The “Minimum” In Auto Insurance Rates

You enjoy weekend rides through town in Arvada, CO. Do you have enough auto insurance, though?

The state of Colorado requires drivers to have a minimum of $25,000 coverage for bodily injury per person hurt in an at-fault accident. You are required to have $50,000 for bodily injury per accident. Colorado state minimum for auto insurance requires $15,000 per accident for property damage. 

The above figures may be representative of the minimum, but they are not absolute. You may need to purchase more or less insurance depending on your financial standing. Alliance Insurance Services can help you navigate the ways of assurance in Arvada and beyond.

What Does The "Minimum" Mean?

Some drivers believe that they cannot be held liable for damages or injuries incurred in an at-fault accident so long as they keep the minimum policy limits as established by state regulations. The reality, however, is that you are responsible for all damages in an at-fault accident regardless of whether your insurance provider pays all of the bills. Some drivers have found themselves on the receiving end of lawsuits because their policy limits were not enough to pay for everything. You do not want to be one of these unlucky souls.

The “minimum” in the insurance world refers to the absolute cheapest route you can take to obtain an indemnity plan. You do not fortify yourself against lawsuits simply because you chose to buy insurance.

What about rising premium rates?

It is true that the state of Colorado is ranked as number three when it comes to steadily rising premium rates. Part of the reason for the growing expense is because of hikes in vehicle theft that leave insurance providers with no other choice than to protect themselves against loss. Still, even with the cost of auto indemnity plans rising, it is still better to go for the plan that best satisfies your life instead of searching for the cheapest route. 

Let Alliance Insurance Services Help

Our agents have been in the insurance business for many years and are eager to match your circumstances with the right policy. We offer the following products. Contact us today for a quote in Arvada, CO!

What Types Of Commercial Insurance Do I Need For My Business?

As a small business owner in Arvada, Co, you probably understand the importance of purchasing commercial insurance. You may, however, be confused about what kind of commercial coverage your particular business needs. Some types of coverage are required by law, while others are dictated by your professional circumstances. Read on to find out what your Alliance Insurance Services policy should cover based on your small business needs.

If You Have Employees

If you have employees, the state of Colorado requires you to carry the following types of coverage:

  • Worker’s compensation insurance
  • unemployment insurance

According to the Colorado Workers’ Compensation Act, every business in the private and public sector that hires employees must carry worker’s compensation coverage.

This coverage extends to both part-time and full-time workers. Compensation coverage reimburses your workers with partial wages and covers medical costs in case of injury on the job.

Additionally, you must pay for unemployment tax, which partially covers your employees’ wages in the immediate aftermath of getting fired.

If you Use A Vehicle

If your business requires the use of a vehicle in any capacity, you need to purchase commercial auto insurance.

For a business registered in Arvada Co, you need to carry the following amount of coverage per business vehicle:

  • Bodily harm: $25,000 per person
  • $50,000 per accident for bodily harm
  • $15,000 per accident for property damage

In case of an accident, the other party can sue you over these minimum limits, therefore, it’s smart to purchase more commercial auto coverage. The state’s law mandates that should the other party’s damages exceed your auto policy, your business is responsible to cover the difference.

If You Are A Practicing Professional

It’s fair to say that all business owners are professionals. However, certain types of professions require you to carry coverage for charges made against your services or products. In general terms, this type of coverage is classed as liability insurance.

If you’re a practicing doctor or lawyer, you need malpractice insurance. As an architect, realtor or engineer, you should seek errors and Omissions coverage. Any other small business owner should purchase business liability insurance, which protects them from being charged in case of harm caused by their service or product.

Are you ready to protect your business? Contact a friendly Alliance Insurance Services agent to discuss the type of policy that works best for you.