It sounds as if the bank, your lien holder, had "forced placed" insurance on the vehicle because you did not have the required insurance on the vehicle. As you are now probably aware not only does this only give the bank coverage and not you but the cost of this insurance is typically higher than you would pay if you bought your own policy through a standard carrier. Also, forced insurance does not provide liability coverage on your behalf.
If the bank is your lien holder then normally they would require you to not only have the state mandated liability coverages as part of an auto insurance policy on the car but also physical damage coverages of collision and comprehensive.
If you collided with a bridge due to ice or bad weather then collision coverage would have normally covered you for the damages to the vehicle. If you damaged the bridge, guardrail, etc in many states you will be required to pay for repair costs. Generally your liability insurance would have covered these costs for the property you damaged but now since you were driving without insurance if you are contacted for paying for any repairs you will be held personally responsible.
The Colorado Division of Insurance (DOI) states that if you own an automobile in Colorado you are required to purchase auto insurance. By law, you are required to carry liability insurance to provide financial protection in the event you injure someone else or damage someone else’s property while operating your automobile.
The DOI notes that automobile liability insurance is generally defined as coverage for bodily injury you cause to another person or for property damage you cause to another person’s property through negligent use of your vehicle. The minimum amount of liability insurance required by Colorado law is as follows:
- $25,000 per person for bodily injury;
- $50,000 per accident for bodily injury; and
- $15,000 per accident for property damage
The Colorado Revised Statute 42-4-1409 discusses the state financial responsibility / compulsory insurance law. This states that no owner of a motor vehicle required to be registered in this state shall operate the vehicle or permit it to be operated on the public highways of this state when the owner has failed to have a complying policy or certificate of self-insurance in full force and effect as required by law.
If you are caught driving without insurance in Colorado there can be severe penalties.
A first offense for driving without insurance comes with a $500 minimum fine and 4 points being placed onto your CO motor vehicle record (MVR). A second offense for being an uninsured motorist is a minimum $1000 fine and a license suspension of 4 months. A third violation comes with penalties which can include a minimum fine of $1000, community service, and an 8 month license suspension.
To see if there are anyways in which to help yourself now, after this single car accident on the ice, you may want to contact the CO Division of Motor Vehicles and/or the Colorado Division of Insurance. They may be able to advise you if obtaining insurance now will help you in court.
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