This video discusses the significant increase in auto insurance costs for Colorado residents, highlighting that Colorado is the 11th most expensive state for car insurance, with predictions of becoming the fourth highest by 2033. The speaker notes that average annual premiums have risen by over 53% in the last decade. The video explores reasons for this surge, including the misleading impact of ending Personal Injury Protection (PIP) coverage, and dispels the misconception that attorneys and lawsuits are primarily to blame.
The insurance industry attributes the increased costs to the rising price of vehicle repairs and replacements, skyrocketing medical expenses, frequent hail storms causing body damage, and Colorado leading the nation in automobile thefts per capita. The speaker proposes solutions for Colorado citizens, such as pushing for legislative changes to reduce thefts, removing insurance caps to allow better recovery for injuries and incentivize reasonable hospital billing, and holding insurance companies accountable for their rising rates and CEO salaries.
Key Insights
- Soaring Premiums: Colorado’s average annual auto insurance premium is currently $1,940, making it the 11th most expensive state for car insurance. This is projected to increase to $2,968 by 2033, potentially making Colorado the fourth most expensive state. Rates have already increased by over 53% in the last decade.
- Impact of PIP Repeal: The elimination of Personal Injury Protection (PIP) coverage, which provided up to $100,000 for medical bills, did not lead to promised lower rates. Instead, coverage was reduced to $5,000, and premiums continued to climb.
- Reasons Cited by the Insurance Industry: Insurers blame rising repair and replacement costs, skyrocketing medical expenses (including extreme examples like a $177,300 emergency room bill), frequent hail storms, and high automobile theft rates (including catalytic converters).
- Attorneys and Lawsuits Not to Blame: Insurance companies are not blaming attorneys or lawsuits this time, likely due to Colorado’s severe caps on insurance claims and lawsuit payouts, which significantly reduce large verdicts.
- Suggested Actions for Citizens:
- Legislative Changes to Reduce Thefts: Advocate for increased penalties for auto and catalytic converter thefts.
- Remove Insurance Caps: Push for the elimination of caps on injury recovery amounts to help victims pay medical bills and potentially incentivize more reasonable hospital billing.
- Hold Insurance Companies Accountable: Question why rates are increasing while CEO salaries are exploding (citing examples of CEOs making over $20 million annually). Citizens should use their vote and voice to push for fairness.
(FAQ) Frequently Asked Questions
Why are Colorado’s auto insurance costs surging?
Colorado is experiencing a significant increase in auto insurance costs, making it the 11th most expensive state to insure a car. This surge is attributed to rising vehicle repair and replacement costs, skyrocketing medical expenses (especially ambulance and hospital bills), frequent hail storms causing body damage, and Colorado leading the nation in automobile thefts per capita, including catalytic converter thefts.
How much have average annual premiums increased in Colorado?
The average annual premium in Colorado is $1,940, and auto insurance rates have gone up over 53% in the last decade. It’s predicted that by 2033, Colorado will have the fourth highest insurance premiums in the U.S., with an average premium of $2,968.
What was Personal Injury Protection (PIP) coverage, and what happened to it?
PIP coverage in Colorado provided up to $100,000 for medical bills if you were injured in an automobile crash. Insurance companies lobbied to end this, claiming it would reduce insurance rates. However, after PIP was eliminated (reducing coverage to $5,000), rates still increased significantly, showing that the promise did not materialize.
Are lawsuits and attorneys to blame for the increased insurance rates?
Surprisingly, insurance companies are not blaming attorneys or lawsuits for the current rate increases. Colorado has severe caps on insurance claims and lawsuit payouts, which often reduce multi-million dollar verdicts to hundreds of thousands at best, making it difficult to attribute the drastic rate increases to lawsuits.
What can be done to address the rising auto insurance rates?
Several actions can be taken:
- Legislative changes to reduce thefts: Implement stricter penalties for automobile and catalytic converter theft to deter criminals.
- Remove insurance caps: Eliminating caps on what injured individuals can recover would allow them to pay medical bills, potentially leading to more reasonable hospital billing practices if they are consistently paid.
- Hold insurance companies accountable: Question why insurance company CEOs are receiving exploding salaries (some making over $20 million annually) while rates are also drastically increasing. Citizens should use their vote and voice to demand fairness and accountability from these companies.
