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Colorado Has Second Highest Insurance Rates in the U.S.

Colorado Has Second Highest Insurance Rates in the U.S.

The cost of living is high and still rising, putting intense pressure on Colorado families who are just trying to get by. Families have seen costs increase in almost every area, from groceries and household goods to services and luxury items. One cost that has increased faster than normal is car insurance. This is particularly painful because you cannot drive without insurance, but if you can’t afford insurance, what are your options? These increases have led to an uptick in drivers without vehicle insurance, which puts enormous strain on victims of car accidents. If you’ve been involved in a car accident with an uninsured or underinsured driver and you’re struggling to receive compensation, it’s time to talk to Colorado Accident Attorneys. Call us at 303-567-7981 to set up a consultation now.

When you hear that Colorado has some of the highest insurance premiums in the country, that may make you wonder why. Does Colorado have unreasonable insurance requirements that make drivers pay for more coverage than drivers in other states have? Mandatory automobile insurance in Colorado must cover at least $25,000 in bodily injury per victim, at least $50,000 for bodily injury per accident, and $15,000 in property damage per accident. These are in line with requirements across the country, leading many to wonder why Colorado residents have suffered such massive price spikes.

Colorado’s Ever-Increasing Premiums

Recent research compared car insurance premium costs since 2013, allowing researchers to look at price dips and spikes in every single state. The only state that saw steeper increases than Colorado was Florida, which saw an 88% increase and premiums of approximately $2,500 per year. Colorado saw its premiums jump 53% in this time period, resulting in annual premiums of nearly $2,000.

This type of increase can be devastating for a family. A significant amount of families live paycheck to paycheck, and a bill that suddenly jumps $100 per month can mean that the grocery list gets a little shorter, children have to drop a beloved activity, or a parent has to pick up a side hustle.

What’s Driving the Increase in Car Insurance Costs?

Experts have weighed in on what they think is driving these costs through the roof. Inflation is an issue, just as it is in every industry. Furthermore, the aftershocks of the COVID-19 pandemic are still being felt. The pandemic caused massive damage to the supply chain, and some industries are still feeling the effects four years later. Glass, vehicle components, raw materials, and other items needed for repairs are more expensive and harder to find, forcing repair shops to increase their prices accordingly. There’s also a labor shortage among mechanics, further increasing prices. These increases are passed on to insurance companies, and they pass them on to their customers.

They also note that accident claims are on the rise. During the pandemic, drivers got a little bit more reckless due to fewer cars being on the road. But they didn’t lose those habits once traffic picked back up, and we now have car accident numbers spiking across the country. When more people are tapping into an insurance fund, prices will inevitably rise.

Protecting Yourself as a Driver

As a driver, it’s frightening to know that you could be involved in an accident and be left with nothing due to an uninsured or underinsured driver. Those in the field recommend adding underinsured and uninsured motorist coverage to your policy. This ensures that your expenses are covered even if you are hit by an uninsured driver. While this does further bump up the cost of car insurance, it can save you tens of thousands in the event of an accident.

How to Save Money on Car Insurance

It’s more important than ever to explore your options. No matter how long you’ve been with your insurer, spend some time getting quotes from other companies, looking into discount options, and checking out safe driver programs that reward you for safe driving.

Start Your Personal Injury Claim With Colorado Accident Attorneys

Have you been injured by a careless driver? Find out if you have a valid personal injury claim. The team at Colorado Accident Attorneys is ready to support you through this process. Get in touch online or call us at 303-567-7981 now.

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