As the Recession continues to worsen, and gas prices continue to soar one can't help but reflect on all the other necessities in our lives that will be impacted. Many of us have to drive to and from work, and considering what gas prices cost these days, only wish we could car-pool or take public transportation.

So the question arises, since I reside in a State that makes auto insurance mandatory, how can I find the most affordable car insurance? How can make sure I obtain coverage that meets my needs when there are so many to choose from?

First thing it would be important to know is the minimum coverage by Law for the State of Colorado. Colorado requires that liability for each individual injured party in an accident, the coverage should be $25,000 maximum payout for each person. The total maximum payout for all injured parties would be $50,000 liability for a single accident. The total property damage liability for a single accident is $15,000. What this means is that you must have as a bare minimum $25,000 per person for injuries caused to another person, up to $50,000 for all parties injured in the accident you were involved in and $15,000 for damage you caused to the other party's property.

Again these are minimum coverage by Colorado State Law. When considering Colorado Auto Insurance you should consider higher levels of coverage if you have assets to protect. In addition to considering the protection of your assets, optional coverage such as medical payments, collision, comprehensive and underinsured motorist bodily injury coverage may be the way to go.

The driving force for how Colorado Auto Insurance premiums are determined is based upon state driving records as a whole. What happens is that insurance companies take the cost of providing coverage for all Colorado drivers (including settlements and legal fees) and divide it up among all the drivers in the state. While I would like to tell you that the cost is distributed evenly, that is not the case.

The percentage paid by you as an individual driver is determined by the following:
• Your driving record
• Your age
• Your logistics
• Type of vehicle you drive

Let's face it, if you are under 25 it doesn't matter what state you live in, it is going to cost more to insure you. It doesn't matter if you are driving a Pinto, a Viper or a Mustang GT your age works against you. Red cars and black cars cost more to insurance than grey or blue. A sports utility vehicle costs more to insure because they are highly sought after by car thieves. The concept of installing GPS tracking chips to deter auto theft is beginning to become more common. It would be foolish to the extreme to steal a car that can be traced in a matter of minutes, wouldn't it? Security systems also lower your auto insurance rates. Often you may find during the questionnaire you will be asked whether you will be using your vehicle for pleasure or work and on average how many miles you will drive. These are all determining factors in what your insurance premium will be. Obviously by driving more, you increase your chance of a motor vehicle accident. So do yourself a favor: protect both your assets and your wallet by comparison shopping before selecting a Colorado Auto Insurance.