How To Know If Your Dealing With A Licensed Insurance Agent Or Company

Today is this world, it seems like some one is always out to scam or cheat someone else. We all know its very important to protect your identity and other financial information. We all need to be skeptical, and must protect ourselves as best as we can. So how do you know if your dealing with a legitimate agent or company when shopping for insurance? You have to give out a lot of information when shopping for insurance. It’s always good to double-check if that person or company is licensed before you do so.

How Do I check If a Company or Person Is Licensed?

It’s very easy to check if an agent is licensed or if a company has a certificate of authority. You can simply do this by contacting the department of insurance in your state. For example in Colorado, its DORA- Division of insurance.  From here you can see if they’re licensed and what lines they authorized to transact business in. It also shows the dates of inception and expiration of their license or Certificate Of Authority.

The division of insurance also requires agents to pass a mandatory test, and also pass a credit and background check. They require insurance companies to get a Certificate Of Authority, and to prove solvency and stability  in order to write insurance in their state.  Some companies are Surplus and Excess and do not have to got thorough the process of getting a Certificate Of Authority. These companies  write unusual risks or hard to place, and are considered non-standard markets. In most states, the commissioner has a list of Surplus and Excess companies they find the most trust worthy.

Other Ways to Verify Acknowledgement and Recognition

  • Most agents must go through the process of being appointed by an insurance company. This includes license check with the state, background check, and credit check.
  • Check the financial score of an insurance company by visiting AM Best.
  • Check with the BBB.
  • See how long a company or agent has been in business. A new or small company or agent is not necessarily negative.
  • Meeting an agent or company rep in person is always a good idea.
  • See if the agent and/or company has any past or current complaints with the division of insurance.

Most of all if its to good to be true, or you feel uncomfortable, don’t give out your personal information! Check with the State Department of Insurance first. As always if you have more questions please call us during normal business hours.

Colorado Law Auto Insurance Requirements

We all know that by law in Colorado and most states, that we are required to carry auto insurance by law. Or known as financial responsibility, which in other words if you can’t self insure yourself, you must by car insurance. So what exactly is required by law. Since were an at fault state, the insurance required to buy, is to put it shortly, not very much.

Colorado Vehicle Insurance Requirements

All that is required in Colorado is to carry compulsory auto insurance liability of 25/50/15. Liability only covers the 3rd potential party. So for example, you are considered at fault in a car accident. You are the first party, the insurance company is the second party, and the person you were at fault for in the accident with, is the 3rd party.

What Does 25/50/15 mean?

25/50/15 or 25-50-15 means liability policy limits are as the following, in which an insurance company is responsible in costs, judgements, lost wages and pain and suffering in an at fault accident, representing and defending you.

  • 25,000 dollars per person in bodily injury
  • 50,000 dollars per total of accident in bodily injury
  • 15,000 dollars property damage.

Is there anything else required or optional?

Nothing else is required to be carried.  Optional coverages include:

  • Higher Liability Limits of 50/100/25, 100/300/50, 250/500/100 and 500 csl.
  • Medical Payments
  • Uninsured or under insured motorists.
  • Uninsured motorists property damage.
  • Physical damage, which includes comprehensive and collision.
  • Rental Car Reimbursement
  • Towing

What We recommend

Everyone is always a case by case scenario. That’s why I never recommend buying a policy through the internet. We always take time with our clients, to find out what is best for them. We first of all would recommend higher liability limits. The limits required by law are very low. You are usually cutting yourself by buying these limits. My saying is cheap rates get you cheap coverage. We also make sure that every policy has uninsured or under insured motorists. If you don’t have health insurance, medical payment coverage is very important. If you have any questions, we can write in 45 states, and most of all, our home State and City, Denver, Colorado.