Colorado drivers will have to pay more for auto insurance this year. On average, drivers can expect to pay 15% or more on their next policy.
Why the rate hike? The number of filed claims in Colorado is increasing, in part because of the growing number of people moving to the state. In 2016 alone, Colorado had more than 100,000 people move to the state. More drivers inevitably mean more accidents—however, more expensive cars and dangerous driving behavior also influence accident numbers.
Traffic fatalities were up across the country in 2016 by 8%, according to preliminary estimates, and Colorado saw a 24% increase last year compared to 2014.
Car insurance premiums are based on a variety of factors including age, location and driving record, so not all drivers will see the same increases. On average, a $600 policy in Colorado will now increase by $90.
This state increase comes just weeks after the Federal Insurance Office released a study stating that millions of Americans live in areas where auto insurance is unaffordable. The average household in the United States spends about 2% of its annual income on car insurance. Yet, of the ZIP codes studied, nearly 19 million live in unaffordable coverage areas.
Read more about the study at The New York Times.
Source: Fox 31 KDVR