COMMON COVERAGE TERMS
Protection against possible financial loss
What is INSURANCE
Insurance that covers damage to your vehicle when it hits or is hit by another object
What is collision insurance
This optional coverage helps pay for repair of replacement of buried utility lines such as water, sewer, gas, or electricity. You may have received a mailer about this from your gas company encouraging you to purchase this from a 3rd party.
What is service lines coverage
A higher deductible usually results in a lower premium
TRUE The higher your deductible the lower your premium.
Coverage pays up to certain amount for injuries, regardless of fault and is not subject to a deductible
What is MEDICAL PAY
Red cars cost more to insure...
FALSE Insurance rates are based on the car's make, model and safety features, not it's color
Provides extra coverage beyond the limits of your home, auto, and other underlying policies. Kicks in when limits have been exceeded due to serious accident or lawsuit
What is an UMBRELLA
Teen boys cost more to insure than teen girls in Colorado.
TRUE Although state specific (some states do not allow gender specific rates) in Colorado Insurance is based on statistics and risks. Data shows young males are more likely to engage in risky behavior.
September 2025 data of 20 year olds in Colorado shows in Colorado being $6,473 for a male and $5,764 for female for the same coverage per year.
Protection against someone that has no insurance or not enough insurance
What is UNINSURED MOTORIST. Although in Colorado, if you carry collision coverage you are subject to your deductible for repairs to your vehicle
Insurance that protects you from theft, vandilism, a hail storm, or animal damage
What is comprehensive physical damage
Payment based on the replacement cost of an item minus depreciation
What is actual cash value
The rental car coverage on my policy will pay for my car so my family can rent a car to drive to Florida.
FALSE Rental car coverage on an auto policy is not for renting a car on vacation. It is for transportation while your own car is being repaired after a claim.
Protects furniture, clothing, towels, dishes, and electronics
What is PERSONAL PROPERTY
Your car is damaged by another person. They accept full responsibility. You get the insurance information, phone number, and a file a police report. Who do you call?
You call THEIR insurance company. You do not call your insurance company because you would be subject to your deductible and would not get it back. You pay zero out of pocket by calling theirs.
I should pay for additional insurance for a U-Haul or rental car.
FALSE Most insurance will cover these rentals. However, not all cover loss of use. This means if you wreck your Enterprise rental they will charge you for days they are not able to rent the car. American Family will cover loss of use. Always ask your insurance company about loss of use.
If there is a catastrophe, this coverage will pay for a hotel or temporary housing. It also covers things like pet boarding, storage fees, increased food costs, and transportations costs.
What is LOSS OF USE