Colorado drivers are paying more to insure their cars amid budget pressures hitting households from multiple fronts.
Here's what to know
New state data shows the average cost of full-coverage auto insurance in Colorado has climbed more than 36% in four years, according to KMGH-TV.
Statewide, NAIC data show the average full-coverage premium is now above $1,800 in 2024, up from above $1,300 in 2021. That works out to a $488 increase over the period.
"Right now, I'm paying about $200 a month, which is a significant increase over the past two years," said Denver resident Alison Miller. "I was paying around $120 to $130 about two years ago."
Miller's experience mirrors the statewide trend in the NAIC data. A jump from roughly $120 or $130 per month to $200 adds up to hundreds of extra dollars a year for a driver.
Because most drivers must carry auto insurance, premiums rising this quickly can affect whether people keep certain coverage levels, shop for a new policy, or struggle to stay insured at all.
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More background
McDivitt Law Firm CEO and attorney David McDivitt observed that the increase reflects several pressures at once, including hail claims, rising medical bills, more expensive repairs, and a growing number of uninsured drivers on Colorado roads.
"Those of us who are doing the right thing by paying for car insurance are paying higher rates because there are an increasingly larger number of people choosing not to insure themselves but still getting behind the wheel and driving on our roads — that will drive up insurance rates as well," he added.
Even relatively small crashes can now lead to higher repair bills, McDivitt noted, because a damaged bumper may also involve sensors, cameras, and other electronic parts.
Miller was surprised by how many uninsured drivers are on the road.
More generally, when insurers pay more on claims, they pass those added costs on to customers through higher renewal premiums.
What can be done?
To reduce the impact, McDivitt recommended comparing several insurers, reviewing policy choices, and asking about uninsured motorist coverage.
In a market where the statewide average full-coverage premium now exceeds $1,800, even small policy differences can meaningfully affect yearly costs.
"It's so important that you don't just get the basic policy, but that you also add on additional coverage that protects you if you are hit by somebody who is uninsured or underinsured," McDivitt advised.
That recommendation is particularly relevant in Colorado, where uninsured drivers were specifically identified as one reason rates are rising.
Additional uninsured motorist coverage will not reduce the statewide average, but it can help protect an individual driver from a costly gap after a crash.
"Any number of different things that can increase the cost to repair a vehicle will then in turn be used by the insurance industry to raise the rates," McDivitt explained.
Where can I learn more?
Several pressures are driving up insurance costs for drivers and homeowners.
• Nationwide, climate impacts are pushing car insurance rates higher as disasters grow costlier.
• For some U.S. drivers, insurance costs have spiked as repair and claim expenses climb.
• In Colorado, dual-catastrophe risks are sending homeowners' insurance costs sharply upward.
• In California, State Farm sought a 22% rate hike amid pressure over premiums.
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