What Is Medical Payments Coverage, On A Car Insurance Policy?

June 19, 2011 by Leave a comment

As we all know vehicle insurance can be very complicated at times. So I am going to go over medical payments coverage. Or also known in other states other than Colorado, personal injury protection. This coverage only applies to states that use an at-fault tort system.

What is Medical Payments?

Medical payments coverage pays for bodily injury, and other expenses for the at-fault party in an accident. Coverage is usually available in the following increments, per person in the at fault vehicle. $5,000,  $10,000, $25,000, $50,000 and sometimes as high as 100 thousand.  This will cover such things as medical bills, ambulance ride and most other expenses. There is no deductilbe. Keep in mind this coverage is only for when you are in a at fault accident.

Why It Is Good To Carry Medical Payments?

There are always two scenario’s, when medical payments is good to have on your policy. For one you might have a high deductilbe on your health insurance. Most of the time, medical payments coverage will pick up all out of pocket expenses in your health insurance. So for example if you have a 5,000 health insurance dollar deductible, and have $5000 in med pay. Chances are you will not have to pay anything out of pocket. The other scenario is if you don’t have heath insurance. At this point I would recommend buying a much medical payments coverage as you can. At the very least, $5,000 in coverage.

How Much Does Medical Payments Coverage Cost?

Med pay is usually a very inexpensive coverage on your policy. We have seen at as low as $15 dollars every 6 months. This all really depends on you driving record, past accidents, and credit. Other factors come in to play also. For more information on this coverage feel free to contact us. We can write insurance in 45 states.

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Colorado Law Auto Insurance Requirements

June 11, 2011 by 1 Comment

We all know that by law in Colorado and most states, that we are required to carry auto insurance by law. Or known as financial responsibility, which in other words if you can’t self insure yourself, you must by car insurance. So what exactly is required by law. Since were an at fault state, the insurance required to buy, is to put it shortly, not very much.

Colorado Vehicle Insurance Requirements

All that is required in Colorado is to carry compulsory auto insurance liability of 25/50/15. Liability only covers the 3rd potential party. So for example, you are considered at fault in a car accident. You are the first party, the insurance company is the second party, and the person you were at fault for in the accident with, is the 3rd party.

What Does 25/50/15 mean?

25/50/15 or 25-50-15 means liability policy limits are as the following, in which an insurance company is responsible in costs, judgements, lost wages and pain and suffering in an at fault accident, representing and defending you.

  • 25,000 dollars per person in bodily injury
  • 50,000 dollars per total of accident in bodily injury
  • 15,000 dollars property damage.

Is there anything else required or optional?

Nothing else is required to be carried.  Optional coverages include:

  • Higher Liability Limits of 50/100/25, 100/300/50, 250/500/100 and 500 csl.
  • Medical Payments
  • Uninsured or under insured motorists.
  • Uninsured motorists property damage.
  • Physical damage, which includes comprehensive and collision.
  • Rental Car Reimbursement
  • Towing

What We recommend

Everyone is always a case by case scenario. That’s why I never recommend buying a policy through the internet. We always take time with our clients, to find out what is best for them. We first of all would recommend higher liability limits. The limits required by law are very low. You are usually cutting yourself by buying these limits. My saying is cheap rates get you cheap coverage. We also make sure that every policy has uninsured or under insured motorists. If you don’t have health insurance, medical payment coverage is very important. If you have any questions, we can write in 45 states, and most of all, our home State and City, Denver, Colorado.

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