Colorado car owners seeing increasingly higher insurance premiums compared to other states
Car owners across Colorado are seeing much higher rates for auto insurance premiums than they did in the last 10 years.
"The price has jumped up very very high," said Dani Briseno.
For Briseno, the cost to drive with insurance in Denver went from nearly $180 a month in 2022 to more than double that this year.
"I moved here from California. My car insurance there was pretty cheap," she said. "It's $388 a month now, which is quite a high jump."
New projections from the Bureau of Labor Statistics and other reports indicate Colorado has among the highest car insurance premiums in the country. Since 2013, the state's average car insurance premiums increased roughly 53%.
"We've really started to notice it since the pandemic and now it's getting to the point where every policyholder every year is probably getting a letter and they smack themselves in the head and they say, 'Again? I haven't even had a claim,'" said Skyler McKinley, regional director of public affairs for AAA.
McKinley says insurance premiums could continue to increase over the years for a variety of factors.
"Colorado's No. 2 per capita for hail. We get some of the most damaging hail in the country. That tends to affect your car, that's going to send our premiums upward," he said.
However, it is more than just Colorado's weather that is affecting insurance bills. Last year, Colorado topped the list of car thefts per capita, and Colorado's population growth creates greater wear and tear on the state's infrastructure while putting drivers at a greater risk for accidents.
"2022 was the deadliest year on Colorado roadways in our recorded history. 2023 was a little bit safer, but we had a record number of pedestrian and bicyclist deaths. Those crashes costs us money," said McKinley.
It is also the kinds of cars people in the state are choosing to drive that is causing rates to skyrocket.
"We have a pretty large SUV," said Julia Moon, a Colorado car owner. "I think we pay a pretty penny for our insurance on our car."
"Those are expensive vehicles that Coloradans can typically afford and they buy them so they can go to the high country," said McKinley.
Still, despite the rising costs each year, McKinley stresses it's better to have insurance and not need it, then the other way around.
"Again, you can't not have insurance, like if something was to happen, then you have to pay out of pocket and everything," said Briseno.
Which is why McKinley urges car owners to monitor your premium increases, call your agent, and shop around as much as possible.
"Because there are adjustments in your life that might save you money," he said. "If your credit score has gone up, for example, considerable savings there. If you have gone fully remote in your work, or even partially remote and you're not driving to the office as often, you can save there on car insurance."
McKinley says only about 15% of the state shops around for new auto insurance policies, which he says could make a huge difference in changing how much a person spends.
"It pays to monitor your situation," he said. "This is not something you should just set and forget."
Long-term, he stresses that access to insurance might change as well as global warming continues to impact the community.
"Some insurers are deciding not to insure in Colorado," he said. "This is also happening famously in California in the wake of their Paradise fire. We saw some of it after the Marshall fire. Climate change is going to cause insurance rates to skyrocket."
Colorado also has some of the laxest driver education requirements in the country, which can also contribute to overall higher insurance premiums compared to states with more comprehensive requirements.
"There's a bill before the legislature right now that's weighing that issue because insurance rates costs are so high," said McKinley. "There's a distracted driving phone ban before the legislature. There are some child passenger safety options before the legislature."