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.