Prepare for an unpleasant surprise when you receive your renewal invoice from your auto insurance company. Colorado drivers can expect to pay an average of 15 percent or more on the next policy renewal. “We are seeing auto insurance go up across the country, but we’re getting hit harder here in Colorado,” said Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
5 REASONS AUTO INSURANCE PREMIUMS ARE INCREASING IN COLORADO
- Growing population – The number of claims in Colorado is increasing, partly because so many people are moving to the state. Colorado added more than 100,000 people in 2016, which means more drivers are on the roads. More drivers cause more accidents. In 2016, the number of crash reports increased, including a 24% percent spike in fatal crashes, compared to 2014.
- Hail Damage – Colorado ranks second highest among states for damages related to hail–Texas rates number one.
- Expensive Cars – Today’s vehicles are more expensive to repair. For example, repairing a traditional bumper might cost an insurance company $500 to repair, but a high-tech bumper with a backup camera could cost ten times that amount to repair.
- State Laws – Ever wonder why you see so many commercials from ambulance chasing law firms? Colorado state laws are loose when it comes to lawsuits, making it easier for a person injured in an accident to seek damages from the at-fault party. Insurance industry leaders are working with state lawmakers to tighten some loopholes in the future.
- Distracted Drivers – While drunk driving deaths have decreased 49% nationally since 1991, deaths from distracted driving have caused the biggest spike in traffic deaths in 50 years.
- Bigger losses – All these factors are costing insurance companies huge amounts of money insuring our cars. State Farm reported an overall underwriting loss of $7,000,000.000 in 2016.
5 WAYS TO OFFSET THIS INCREASE
- Eliminate unnecessary coverages – Consider dropping physical damage coverage on your older vehicles. If you have a vehicle that you consider disposable, save money by self-insuring it for damages. Do you have an extra vehicle that can be used as a backup to your primary vehicle? If so, consider dropping rental car reimbursement coverage. Do you belong to AAA or a motor club? Consider dropping emergency road service.
- Increase deductibles – You can save significant premium dollars on newer, more expensive vehicles, by raising your collision and comprehensive deductibles.
- Separate young drivers – Most insurance companies will rate the youngest driver on the most expensive vehicle on the policy, even though they may never drive it. Consider placing your child on a separate policy
- Stayed focused, and do not speed – This is obvious, but cannot be over stated. The two primary reasons for accidents are speeding and distractions. Good drivers pay less.
- Call your DC Insurers Agent to shop the market – Who has time to contact ten different insurance companies to shop the market? One call to your DC Insurers Agent is all it takes. Our comparative rating system allows us to shop over a dozen companies to find you the best insurance value.