Colorado Property & Casualty Practice Exam

In Colorado, personal auto insurers are required to offer a payment option that allows policyholders to make quarterly payments. This requirement aims to enhance consumer accessibility and affordability of auto insurance. By allowing quarterly payments, insurers can accommodate individuals who may find it financially burdensome to pay the entire annual premium at once. This flexibility can be crucial for many consumers, helping them maintain continuous coverage without facing significant upfront costs.

While monthly, annual, and biannual payments are common options offered by some insurers, the law specifically mandates insurers to provide the quarterly payment plan as a standardized option. This ensures that consumers have a viable choice that aligns with varying financial situations, making auto insurance more manageable for a broader audience.