Why Do Auto Insurance Rates Increase? – Lakewood CO



Hey, everyone. Kevin Egan here with Asset Protection Services of Colorado. Today’s question is in regards to auto rates. The question is, why in the H-E double hockey sticks are rates continuing to rise?
Well, fair question. Let me give you a little background. Over the last 10 years, rates in Colorado have gone up probably close to 80%. We’re the third highest state in the country for rate increases. Why is that? Number one, we switched to an at-fault state in 2003. So whoever’s at fault in the accident, their insurance company pays. Colorado has seen massive growth. It’s an awesome place to live, and apparently the word’s gotten out. So more traffic means more accidents, more claims, higher premiums. There’s some evidence that the legalization of pot has led to more accidents, so we have higher claims or more claims, higher premiums. Also, cars are just more sophisticated electronically, and it costs more to repair them. Then we’ve got a lot of uninsured drivers. About 16% of the drivers don’t have insurance, which is illegal. So don’t do it. Call us to get covered.
Now, there’s more to come on the subject in terms of how rates are set; but in short, agencies have no ability to raise rates, lower rates, negotiate rates set by the corporate office, approved by the state commissioner. So I hope that answers your question. Give us a call for more information, (303) 421-9702. Be safe. Be well.

Call Asset Protection Services of Colorado in Lakewood CO at (303) 421-9702

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(303) 421-9702

10881 W Asbury Ave Ste 225
Lakewood, CO 80227