Gov. Jared Polis takes action as Colorado's car insurance ranks among top 5 most expensive
Coloradans are paying among the highest car insurance premiums in the nation.
Drivers are shelling out more than $3,200 a year for full coverage, which is 30% more than the national average, according to Bankrate.com.
Gov. Jared Polis says that's unacceptable, stating, "We've got to have an action plan to reduce automobile insurance rates."
The governor released a "Roadmap to Reduce Auto Insurance Premiums" that he says addresses the key drivers behind the high cost, including road safety. His goal is to decrease traffic-related fatalities and injuries by 22% by June 2027, by, among other things, installing more cameras in high traffic areas and work zones and increasing sobriety checkpoints. He's also signed new laws regarding cell phone use while driving, seatbelts for kids, and chains for commercial trucks.
The governor says reducing auto thefts will also reduce rates. Two years ago, the state ranked first in the country for the number of stolen vehicles per capita.
Polis says a law making all auto thefts a felony has led to a 30% drop in thefts statewide, "Part of this also is making sure the Division of Insurance is using their regulatory authority to make sure that when the risks go down, there is also a reduction in rates."
He says uninsured motorists are also driving up rates, which is why he says he is making upgrades to the Motor Insurance Identification Database to make it easier for officers to verify insurance in real-time and penalize those without it. The governor is also urging district attorneys to step up the prosecution of auto body shops that waive insurance deductibles, which is against state law.
"That deductible is very much what would prevent somebody from getting what you might call a frivolous repair," Polis explained. "If you don't have to pay anything out of pocket, sure. I have one little dent, go ahead and bill the insurance company $1,000 to fix it."
The biggest factor in Colorado's auto insurance rates is hail. We have the second highest number of hail claims in the country. While the Governor can't control the weather, he says the state will begin sending out hail alerts similar to what it does for wildfires and missing kids.
Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association, says most hailstorms happen between 3-6 p.m., when many people are on the road, so hail alerts may have a limited impact.
But she says the Governor's roadmap is a good start, "Very much appreciate the governor leading the way in looking at what can we control when it comes to our auto insurance premiums and our traffic safety."
Walker says changing laws that make it easier to sue insurers would also help lower rates. She says the higher premiums are due to more high-tech cars too, which lead to higher repair costs.
"When you used to have windshield repair that was $500, you could do it in your driveway," said Walker. "Now, we're seeing you're driving around in a computer chip, and all the chips in that windshield could be a $5,000 repair."
The governor will have a public dashboard to track his roadmap's progress, but he says don't look for rates to drop immediately. Polis says when risk goes down, it takes a year for rates to adjust.
"We've got to see how all these things move. We hope they all move the right way over the next year, and then the resulting reduction in automobile insurance rates. So, we're going to track it and follow it to make sure it happens," Polis said.