This story was produced as part of the Colorado Capitol News Alliance. It first appeared at cpr.org.
Coloradans pay more than most Americans for their car insurance, and hail and theft are the biggest drivers, according to Gov. Jared Polis, who is unveiling a plan to try to bring those rates down.
Colorado has the 5th-highest auto insurance rates in the country.
“I was surprised that Colorado ranked fifth, and we feel that with this action plan we can at least get to 10th over the next year and a half or so,” Polis told CPR News. “And frankly, we'd love to go further. Colorado should not be paying more for auto insurance than people in other states.”
According to figures from the company Bankrate, which provides rate quotes for insurance shoppers, Colorado’s average annual premium for full auto coverage is $3,233, more than any other state except New York, Louisiana, Florida and Nevada.
Polis’ plan is focused on executive actions his administration can take in five key areas that contribute to insurance costs, including cracking down on auto theft, reducing the number of uninsured drivers and increasing safety on the roads.
He highlighted things the state is already doing, like expanding the use of safety cameras to ticket people who speed in work zones. According to Colorado’s Department of Transportation, in 2024, work zone crashes resulted in 567 injuries and 31 fatalities — nearly double the number of deaths from the previous year.
“Remember there is real damage behind the claim,” said Polis. “It's also about saving lives, preventing injuries, but it's reflected economically in lower insurance premiums. So we're really focused on making the best impact we can by targeting enforcement in high risk areas, whether it's DUI, whether it's speeding, whether it's distracted driving.”
Polis also wants the state to also do a better job of alerting people to incoming hail storms and informing them about ways to mitigate hail damage, including parking in covered areas when possible and getting hail barriers or blanket covers for cars.
“If we can reduce hail damage by 20, 30 percent over the next year or two, that'll make a big difference in rates for everybody… So we'll be getting all that information out, along with better severe warning systems for consumers.”
In another effort to bring down costs, Polis is also ordering the Department of Insurance to inform insurance companies about specific repair shops that might be taking advantage of them.
State law requires drivers to have auto Insurance coverage, and getting caught without it can result in four points on your driver’s license and a $500 fine. Under Polis’ plan the state wants to make it easier for law enforcement to check on drivers through the DMV’s Motor Insurance Identification Database (MIIDB) to get them off the roads immediately if they’re not insured.
How auto insurance rates work
Insurance companies set their rates without needing to run changes past the Division of Insurance. But DOI is required to review rates to make sure they follow the law, aren’t excessive or discriminatory and are backed up by data and actuarial analysis.
“We know that many Coloradans are struggling with the cost of auto insurance, and high costs
contribute to our uninsured motorist rate. We are looking at all possible solutions to bring
costs down and our insured rate up,” said Colorado Insurance Commissioner, Michael Conway in a statement provided with the governor’s plan.
Polis said ultimately it’s a multi-faceted issue.
“This is really us laying out what we need to do over the next year.” He said insurance rates are part of the overall frustration many Coloradans have about the cost of living.
“Whether it's homeowners insurance or automobile insurance, these are things that you really don't have a choice about whether to buy and the rates have gone up. And so we need to have an aggressive action plan to bring down those costs for Colorado families.
