NEWS BRIEF
Colorado Auto Theft Prevention Authority Announces Law Enforcement Grants
The Colorado Auto Theft Prevention Authority (CATPA) this week announced eight grant awards totaling nearly $2 million to target and combat auto theft statewide. The grant recipients include funding for seven multi-jurisdictional auto theft task forces made-up of 34 law enforcement agencies from across the state. More...
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The preliminary tally for damage to property and vehicles is estimated at $161.1 million from approximately 34,000 insurance claims. Most of the damage stems from the widespread hail—battering cars and homes—adding up to nearly 21,000 auto claims and 13,000 homeowner claims. More...
Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Insurance
AUTO INSURANCE RATE SURVEY SIGNALS POSITIVE TREND: PREMIUMS ARE STABILIZING & INSURANCE HAS BECOME MORE AFFORDABLE FOR COLORADO CONSUMERS.
February 24, 2005 - After several years of skyrocketing auto insurance premiums, an auto insurance rate survey released today by the Property Casualty Insurers of America and the Rocky Mountain Insurance Information Association shows that Colorado has moved from auto insurance premiums that were spiraling upward to significant savings for many consumers. During the 18 months since Colorado reverted from a no-fault to a tort or “fault-based” auto insurance system, the market appears to be stabilizing with premiums dropping and leveling off at much more reasonable prices for Colorado drivers.
The consumer rate example survey provides a meaningful snapshot because it shows Colorado rate trends for different areas of the state, both urban and rural, and is based on a real-life example. The comparison rates the same 35-year-old married couple with the same risk factors from June 2003 (still under no-fault) to August 2003 (immediately after the transition to tort) and January 2005 (18 months after the transition) and shows a decline of between 19.5% and 27.1%.
“People do need to understand that the change in systems doesn't change the way insurance works —insurance costs will still vary from person-to-person depending on your individual risk factors, such as where you live, what you drive and how you drive,” says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. “Of course, cost savings will also depend on how much insurance coverage people choose to buy to best fit their own needs and financial situation. But, consumers are now also seeing the long-term benefits of moving away from no-fault reflected directly in their policy bottom line.”
The immediate savings for insurance consumers is that they are no longer required to pay for costly Personal Injury Protection (PIP) coverage that was required under no-fault. PIP was a mandated no-fault medical coverage that paid for a driver's own medical bills regardless of who caused the accident. It also included payment for extravagant, non-traditional treatments leading to very expensive auto insurance for everyone. According to a 2003 study by the Insurance Research Council (IRC) on no-fault states, average Colorado PIP claims soared by 122% from 1997 to 2002, more than double the PIP claim increases in New York, which still rose by 60% in the same five-year period and triple the PIP claims increases in Florida (37%). Colorado consumers felt those increases directly in their pocketbooks in 2002 and 2003, when Colorado PIP premiums rose by as much as 80%.
Overall, average savings for Colorado auto insurance consumers continues to be a very dynamic number. Some insurance companies have provided additional rate decreases for consumers in 2004 and 2005—on top of the premium savings offered in July 2003.
Here are some tips from RMIIA on additional ways to save on auto insurance:
- Shop around. Prices for the same coverage can vary by hundreds of dollars from company to company, so it pays to shop around. You should get at least three different price quotes. But, don't shop for price alone. Talk to a number of insurers about what they offer and what they would do to lower your costs. Don't forget to ask about claims service!
- Assess your deductible. Deductibles represent the amount of money paid out-of-pocket before you make a claim. By requesting higher deductibles on collision and comprehensive coverage, you can substantially lower costs.
- Check your vehicle's safety & security rating. Before you buy a new or used car, check into insurance costs. Many companies offer a discount for vehicles with higher safety and crash test ratings.
- Take advantage of good credit. Many companies offer better rates to customers who have good credit histories. Find out if you can save money with a good insurance score.
- Inquire about other discounts. Some insurers offer discounts for carrying more than one policy (home, auto, multiple cars), no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices and good grades.
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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Updated:
February 28, 2007 1:52 PM
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