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Increasing Auto Rates in Colorado

Why are Auto Rates Increasing in Colorado?

One of the most common questions we receive as insurance brokers is “why did my premium go up?” Good question. Auto policy rates are on the rise all over the state of Colorado due to the increase in overall population, distracted driving and hail damage. Read the sections below to better understand why a good driving record can’t necessarily stop increases in premium.

Increase in Overall Population

As Colorado continues to see an increase in population, the risk of an accident continues to increase. Due to an increased risk of accident, Colorado is seeing increases in auto insurance premium. Depending on the registered area code, the premium will also vary due to population density. The larger the area the higher the higher the rates of coverage.

Distracted Driving

Next time you are stopped at a stop light look around. How many people are texting? How many individuals do you see putting on makeup or eating a meal? There will likely be more than one person distracted. According to the Denver Post, 40 distracted driving crashes in Colorado each day in 2017 (Sanchez, 2017). The trend hasn’t improved, “nationally, auto insurance premiums have increased 16% since 2011.” (Distracted Driving, 2019)

Help stop this trend by shutting off your phone and keeping your eyes on the road. If you see friends or family member texting and driving or engaging in some other form of distraction, remind them of the importance to pay attention. Be alert because accidents will hurt.


Hail damage has always been a concern in Colorado; however, risk of damage has only become more concerning. What was once more open land is now more infrastructure, highways with more traffic and more ungaraged cars. With greater potential of damage comes higher payouts after every Colorado storm. To keep up with the reports of hail damage, carriers are increasing rates on auto insurance.

By keeping your car in a garage or other sheltered location, you can help to reduce the rate of damage. Less damage means lower premiums.


Insurance carriers are business and can not operate at a defecate. When companies lose money in any given fiscal year, they raise rates to cover the gap and hopefully turn a profit the following year. For example, in 2017 State Farm had a combined underwriting loss of $6.5 billion. The underwriting loss for auto insurance was 2.8 billion. To combat the profit and loss ratio, premiums are raised.


Distracted Driving. (2019, May 17). Retrieved from National Association of Insurance Commisioners:

Sanchez, H. (2017, June 22). Distracted driving caused 40 crashes each day in Colorado last year, and CDOT wants it to stop . Retrieved from The Denver Post:

State Farm. “2017 Financial Results: State Farm.” 2017 Financial Results | State Farm, State Farm, 27 Mar. 2018,














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