Author Archives: AgentInsure

How to Obtain a Colorado Insurance License

If you wish to sell insurance in the state of Colorado, you will first need to get a license permitting you to sell various types of insurance. There are several different types of licenses that an insurance agent might need or want to be able to sell a wide range of products such as life, medical, homeowner and auto insurance. Some agents specialize in just one area and only require a single license, while those that cover a broad area often will have two or more licenses.

The first step to getting a Colorado insurance license is to take a pre-license insurance education course. You will learn all of the terminology and other related information and, upon completion of the course, receive a certificate acknowledging that you successfully completed the training.

Next, you will be required to demonstrate your knowledge and proficiency of the subject matter by taking and passing a test in the particular line or lines of insurance you wish to sell. If all goes well, you will be issued a license that certifies you as an agent or producer authorized by the state of Colorado to sell one or several different lines of insurance.

There are separate requirements if you are going to sell to both individuals and businesses. For personal lines of insurance, such as selling individual homeowner policies or auto coverage to private citizens, you need one type of license. If you get a license with Property and Casualty authority, you are permitted to sell to both individuals and businesses.

So, if selling insurance in Colorado is going to be your choice of professions, be prepared for some intense study so that you will gain the knowledge and be able to pass the state exam and get your license. Once you have the license, you will need to refine your people skills so you can get them to buy insurance from you.

Getting the Right Colorado Insurance Coverage for Your Home

If you live in Colorado and you own a home, you need homeowners insurance in Colorado. Here are some things to consider to make sure you choose the right insurance coverage for your needs:

Choose the least expensive policy to meet your needs

For many people, a relatively inexpensive and basic Colorado home insurance policy will provide plenty of coverage for structural damage to the home and loss of possessions if disaster strikes, but it will provide little to none for things like expensive jewelry. Don’t pay for extra coverage unless you actually have those possessions.

Take a thorough inventory of your home

Before you choose your policy, take a thorough inventory of your home and document everything. This will give you a good idea of what you’ll need to replace in the event you do have structural damage to your home and/or loss of possessions from disaster.

Opt for replacement value coverage

If you do have a disaster, you’ll need to pay for the reconstruction/repair of your home and replacement of your possessions based upon what they’ll cost you new – more than what your possessions or home are actually currently worth. Therefore, do not base Colorado home insurance coverage on today’s value of your possessions or home, or you’ll likely find yourself without enough money to replace them.

Regularly review and revise your policy as needed

Anytime you make major purchases or significantly remodel (and therefore increase the value of) your home, revise your Colorado homeowners insurance policy. You need enough coverage to rebuild that new addition or replace that just-purchased plasma TV in the event of disaster, things an outdated policy may not cover.

Shedding Light on Colorado Car Insurance Requirements

In Colorado, drivers and owners of motorized vehicles are required to carry a minimum amount of bodily injury and property damage liability insurance. The minimum required amount of Colorado auto insurance is 25/50/15. Simply stated, if you are involved in an accident and found to be at fault, your insurance will pay up to $25,000 for any bodily injury to a single individual or up to $50,000 for all individuals injured by your actions. The policy will also pay out up to $15,000 in property damage you may have caused as a result of the accident.

While these are the minimum requirements, in today’s world an accident can result in far more financial costs than the minimum insurance requirements will cover. If you are found responsible for an accident, you can and very possibly will be held responsible for any amount of damage above the minimum coverage limits. A prudent person should have adequate liability coverage to protect their personal assets.

Mandatory car insurance in Colorado does not require you to carry Comprehensive or Collision coverage to protect your own vehicle. However, if you finance a car, the lender may require you to have this type of coverage. Comprehensive insurance covers you against such things as theft, vandalism or other damage other than collision. Collision insurance covers your car regardless of which party was at fault. If the other party was at fault, your insurance company may try to recover the repair costs from the other driver’s insurance company.

In addition to Comprehensive and Collision coverage, Colorado drivers can elect to purchase Uninsured/Underinsured coverage that protects them, their named resident relatives and any passengers in their vehicle in the event of an accident with a person who has no insurance or an inadequate amount of insurance.

Finally, another optional type of coverage is Medical Payments that pays for reasonable and necessary medical expenses for you and you covered passengers without regard to liability in an accident that causes bodily injury.

How to Understand Colorado Insurance

If you are in the market for home or auto insurance in Colorado, you may be baffled by some of the words, phrases, and information you receive. We’ll address some of these issues in a question-and-answer format.

What does “coverage” mean?

Coverage means the amount of money that will be paid in the event you file a claim. For example, if you have an automobile accident, and your coverage is listed as 25/50/15, this means you have $25,000 in bodily injury per person coverage; $50,000 in bodily injury per accident coverage, and $15,000 in property damage coverage. These figures are the state minimum amounts that you must have in Colorado, but you can opt for more coverage.

OK, I can have more. Do I have to have more?

No, as mentioned earlier, the figures quoted above are what are called “state minimum amounts”. In other words, this is all the coverage you have to have in order to meet Colorado State Insurance Laws.

Do I have to have car insurance in Colorado at all?

Yes, it is State Law in Colorado that you have to have car insurance.

What about homeowners insurance?

No, you are not required by the State of Colorado to have homeowners insurance; however, some mortgage companies may make it a requirement for as long as you are paying the mortgage.