Q:  What is "tort" automobile insurance?    A tort is a civil wrong, but not a crime.   A tort system means that a determination of fault is made.   The party at fault or his/her insurance company is responsible for payment of medical and rehabilitation expenses to the injured party as well as any property damage.   An injured party may also sue for other losses such as lost wages and pain and suffering.

Q:  What is liability insurance?   Liability insurance is coverage for bodily injury you cause to another person or for property damage you cause through negligent use of your vehicle.    Colorado Law requires that all vehicles carry no less than $25,000 per person for bodily injury;  $50,000 per accident for bodily injury; and $15,000 per accident for property damage.   You should review these limits with your insurance agent to be sure you have adequate coverage to protect your assets.

Q:  Can I purchase medical payments coverage under a tort system?  Most auto insurance companies will offer limited medical payments coverage.   This would provide coverage for medical bills incurred by you and your family/immediate family who are injured in an auto accident.  You should check with your agent about the limits available and your particular coverage needs.

Q.  What if my medical expenses exceed the limits of my medical payments coverage?   Under a tort system, it is assumed that the negligent party is responsible for damages.   If you are at fault, either you or your medical insurance will pay for your expenses that exceed the medical payments coverage under your automobile policy.

Q:  If I am injured by a negligent driver, do I have to go to court to get my claims paid?    Hopefully not.   Most cases would probably be settled out of court by many insurance companies once determination of fault has been made.   If there is a dispute about who is at fault or about the extent of damages, court action may be necessary.

Q:  What if the at-fault driver has no automobile insurance?   If you have uninsured/underinsured motorist coverage, your own insurance company will cover your medical expenses up to the limit purchased.   If you have elected to reject Uninsured Motorist coverage, you or your health insurance will likely pay your medicals.    You can sue the at-fault party, but typically most uninsured drivers do not have substantial assets to pay damages.     Uninsured Motorist coverage does not cover damage to your vehicle.   You would need to carry collision coverage or Uninsured Motorist Property Damage coverage.

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How do I reduce rates for the young driver in my household?

Rates for youthful drivers are high because statistically they do have more accidents than older drivers, mostly because of lack of driving experience. Sometimes accidents happen because of peer pressure from other occupants in the vehicle.

To keep rates as low as possible, have your youthful operator attend a driver’s ed course. While some companies have built this credit into their rates, others have not and it could mean a ten percent discount.  Students with a 3.0 grade point average or better qualify for the good student discount which can save up to twenty percent.

The type of vehicle being operated has a significant bearing on premiums as well. Sportier versions and some 4-wheel drive vehicles will cost more to insure for a young driver - or may be unacceptable to certain carriers.   

You can help your new young driver avoid accidents by breaking them in slowly to the new experience of operating a vehicle. We recommend that for the first six months of driving experience, no backseat passengers be allowed. This helps reduce the probability of being distracted and peer pressure from other young people. Never allow more passengers than the vehicle is designed for. Set curfews and know where your young driver is going and who they are going with. Some parents enter into “contracts” with their children about operating a vehicle in the household.

For more information about which vehicles have tested safer, or which would cost more for your young driver, please contact us.

Does my Homeowners policy cover Flood or Earthquake?

Losses caused by Flood and Earthquake are not covered by a Homeowners policy. Earthquake coverage can be added to most Homeowners policies, but Flood Insurance is a separate policy. Floods can result from heavy runoff or heavy rains - not just from overflow of bodies of water.  If rising water affects several buildings/properties, it might be deemed a flood and could be covered under a Flood policy.   

Contact us for a quotation on these valuable coverages.

Does my Homeowners policy cover the business I am running out of my home?