Auto insurance. Colorado.

   Bodily injury and property damage coverages (liability coverages) can be purchased as split limit coverage or as combined single limit coverage. The minimum limits of liability required by Colorado law are 25/50/15. If you choose to purchase the coverage as a combined single limit, the minimum allowable is $65,000 under Colorado law.
   Comprehensive and collision coverages are not required by Colorado. Colorado law requires collision coverage be offered by an insurance company. However, if you borrowed money to purchase your automobile, your lender may require you to carry this coverage until the loan is paid. You are not required to carry medical payments or uninsured/underinsured motorist coverage, but all insurance companies are required to offer uninsured/underinsured motorist coverage in an amount equal to your bodily injury coverage or one hundred thousand dollars per person and three hundred thousand dollars per accident, whichever is less.
   If you plan to lease an automobile, you should check your lease agreement. Generally, these agreements require that you carry liability coverage in the amount of $100,000 per person, $300,000 per accident and may require you to carry property damage coverage in excess of the Colorado Insurance Law.

DISCOUNTS

   Discounts are awarded because the insurance company views you as a “better risk.” You should be aware of what discounts are offered by what companies before buying auto insurance. Here are some discounts you should look for:

1) Multiple Vehicles - Most insurance companies offer a discount to consumers that insure more than one car with their company. Companies offer these discounts not only because they want all of your business, but also because it is easier for them to underwrite individuals that they know, thus reducing their risk and saving them money. In addition, industry statistics show that individuals and families that insure more than one car have better than average claims experience. Through this discount, companies pass along some of their savings to you.
2) Driver’s Education Courses - Discounts for driver’s education courses are targeted primarily at younger and older drivers. In Colorado, all insurers must provide for a reduction in premium for a three-year period for people aged 55 and above if they successfully complete a driving course approved by the Department of Motor Vehicles and Public Safety. The insured must maintain a clean driving record in order to keep the discount. One of the driving courses offered is 55-Alive and is sponsored by the American Association of Retired Persons (AARP).
3) Good Student - Insurers have found that students who are responsible enough to earn a "B" average or better tend to be more responsible drivers. For that reason, many companies offer a good student discount.
4) Safety Devices - Automobile safety devices can lower insurers’ costs by preventing accidents or limiting their severity. These savings are passed along to the policyholder through discounts for safety equipment. This equipment includes air bags, automatic seat belts and anti-lock brakes.
5) Anti-Theft Devices - Devices or systems that deter theft or vandalism also lower claims costs. Many companies offer discounts for anti-theft devices.
6) Low Mileage - The fewer miles you drive, the less chance you have of getting into an accident. Insurers recognize this fact and generally offer discounts for low mileage drivers. Some companies also offer discounts for drivers that participate in car pools.
7) Good Driver/Renewal - Some insurers offer discounts to drivers who maintain a good driving record and renew their policy with them.
8) Auto/Home Package - Some insurers offer a discount on one or both policies if an individual buys a homeowner policy and an auto policy from the same insurer.
9) Dividends - Some insurers, particularly mutual insurers, offer dividends to policyholders if the sale of auto insurance has been profitable to them. Dividends are declared and paid after the policy expiration.

   Discounts are not only ways for companies to attract customers, but also a means for companies to compete and retain business. So when you shop, do not just ask if a discount exists, but also ask how much you save. Savings can differ from company to company. In addition, consumers should make sure that they receive the discounts for which they qualify.