How to choose insurance that is right for you. A guide for Colorado consumers

One step at a time. Choosing insurance doesn't have to be a daunting task - use our consumer tips pages to get educated before you buy.

Isit a good fit? Consider your ultimate goals when purchasing insurance to be sure the policy offers the coverage you want and fits your needs.

Health Care Reform

There are many changes occurring due to national health care reform.

Keep up on the latest developments - and how these changes could affect you.

Complaint Index / Complaint Ratios Report

When a consumer files a written complaint with the Division of Insurance, the allegations are investigated by consumer analysts on staff and the insurance company is given an opportunity to respond to the complaint. Many complaints can be resolved with communication between the consumer and the agent or company.
Some complaints require the intervention of the Division of Insurance for resolution. After each complaint is closed, the complaint and its resolution is tracked, including whether the consumer prevailed in any part of the complaint (confirmed complaints.)

The recording of written complaints and their resolution allows the Division of Insurance to provide a comparative list showing the number of confirmed complaints against a company in relation to the amount of business the company has in Colorado. Consumers are urged to view a company's complaint index and/or complaint ratio report to determine whether the type and number of complaints the company received is acceptable.

Larger companies will typically have more complaints than smaller companies, so seeing the amount of business a company does in Colorado allows the consumer to compare the percentage of other consumers who filed complaints against a company, regardless of company size.

Tell it like it is.

Consumers can file a written complaint when an insurance company doesn’t fulfill expectations. Written complaints may be completed on-line, by fax, or by U.S. Mail. The situation will be analyzed to see if the company followed Colorado law. Consumer complaints are reviewed and tracked, and a company’s complaint statistics can be viewed on the Division of Insurance website. Complaint ratios are created by compiling reports on the number of complaints, and confirmed complaints made against a particular company.

Health insurance. (Recommended, not required by law.) Nobody can predict how long a person will stay healthy and avoid all accidents and injuries.

Having health insurance means if you or an insured family member have serious medical costs, you will have assistance in paying them through your insurance. In certain situations, health insurance can be required. For example, colleges and universities often require students to purchase health insurance or to prove that they carry private health insurance. 

Check first:
Don’t learn the hard way. Certain products, such as “Discount Health Plans” may not provide the benefits you expect when you need them most.

Auto insurance. (Required.) You must have car insurance if you own and drive a car. If you are driving a car you do not own, you must be sure it is insured and you are covered, either by your own policy or by the owner, in some cases.

Colorado law requires you have at least the minimum of $25,000 per person bodily injury / $50,000 per accident bodily injury and $15,000 property damage liability. If you have a loan on your vehicle your lender will also require you carry comprehensive and collision coverage which insures the lender’s interest in the vehicle. 

Medical Payments coverage of Med-Pay (Mandatory Offer/Recommended.)
As of Jan. 1, 2009, Med-Pay is a required part of every automobile insurance policy issued or renewed in Colorado.

Homeowners insurance (dwellings and structures) insures your real and personal property if you own a house, townhouse or condominium.  If your property is damaged, insurance will pay for repairs or rebuilding to the terms of your policy, to include your personal items in the home, attached and free standing structures (based on limits in your policy).

Policies will cover typical damage from fire, wind and tornado, or damage from an event such as a tree falling on your house or a truck knocking down a wall. If you own a home and have homeowners insurance, in addition to protection on structures, your personal property is also covered by most homeowners policies up to specified limits. Your homeowners insurance protects your personal belongings: furniture, appliances, televisions and clothing in case of loss or damage.

Insured personal property, subject to the policy terms and conditions, is actually covered anywhere in the world as long as it is owned or used by the policy holder, or covered family members.  Generally there is 10% of total contents coverage limitation when property is at any location other than the insured premises.

Coverage for personal property is limited unless endorsements are bought, so make sure you research and understand what kind of coverage is available to you for your personal property. If you have items of special or unusual value, speak with a representative of your insurance company to see how they can be covered and if there is additional cost. Document and tell your insurance representative about any expensive artwork, jewelry or heirlooms to see if special endorsements are needed.

Contents Insurance
(also known as tenant or renters insurance) to replace your valuables and personal things against loss. (Recommended, not required.) You can purchase a separate policy for your valuables if you are a renter or college student without coverage. If your items are damaged or stolen, this “renters” or “contents” insurance pays to replace or fix your insured valuables and belongings.

Rental property insurance is a different type of coverage for landlords.
Owners of rental property may purchase dwelling coverage for the property under a personal dwelling fire policy. If you own several rental properties, an insurer may issue a business owners policy for these properties.  This coverage, subject to the terms and conditions, provides similar coverage as homeowners; however there is no coverage, or may be limited coverage, for personal property because it is non-owner occupied.

Types of Insurance which may be regulated, or partially regulated, by another department or agency

Federal Government Health Benefit plans
(for employees of the Federal Government) 

Employer-funded Health Insurance (self-funded or ERISA plans)

Some types of insurance or insurance products are not under state jurisdiction. For example, if you have health insurance through your employer that is self-funded (the employer provides health or disability benefits to employees and assumes the direct risk for payment of claims), this type of insurance is called an ERISA plan and is under the jurisdiction of the Federal Government. Generally, under this type of plan, the employer hires an insurance company to act as a "third-party administrator" for the employer's health care plan, providing claims processing but not accepting any risk.

ERISA plans must still meet certain guidelines, such as detailing how a person appeals a denial of benefits. If you are unsure if you have employer self-funded insurance, ask your employer or call the Colorado Division of Insurance for more information. ERISA exempts self-funded health care plans from state insurance regulation. Therefore, when you need assistance or want to make a complaint about services, you need to contact your human resources department or the U.S. Department of Labor. The Colorado Division of Insurance will be glad to assist you with questions you may have, but may not have jurisdiction over matters we do not regulate.


Check with your company's personnel department if you aren't sure if your health plan is employer-funded. The Division of Insurance can answer questions, but does not have jurisdiction over "self-funded" health plans.