Colorado Market Outlook
2007 represents the best Colorado auto insurance market for consumers in more than a decade:
Premiums have plummeted more than 32% from May 2003 to May 2007 for the majority of drivers with full policy coverage, which includes both mandatory and optional benefits: liability, personal injury protection (2003 only), medical payments coverage, collision and comprehensive. That adds up to an average annual premium drop from $1,289 in 2003 compared to $872 in 2007 or an average savings of $417 per car.
For consumers who purchased mandatory liability, plus optional uninsured motorists and medical payments coverage the average annual premium (excludes comprehensive and collision) decreased by 40.7% or an average annual premium of $899 in 2003 compared to $533 in 2007 (RMIIA/PCI 2007 industry rate survey) .
Colorado Auto Premiums Continue to Drop Since No-Fault Sunset
Those double digit decreases represent historic reductions during a time that nationally car insurance rates were still rising, until a 0.5% decrease in 2006. While claim frequency is down countrywide and in Colorado, the cost for car repair and medical treatments is going up. However, Colorado consumers are benefiting from a stabilization of the market since the legislature repealed its no-fault auto insurance system in 2003. Under no-fault, many auto insurance consumers were also paying twice for health insurance and
extra medical coverage under their car insurance, not to mention military and others who received government-funded medical coverage who were paying for expensive mandated auto insurance that they didn't need.
Colorado Premium Examples
To provide a snapshot of Colorado auto premium trends as the state moved from a no-fault to a tort auto insurance system on July 1, 2003, the Property Casualty Insurers of America (PCI ) and RMIIA surveyed company premiums before and after the change, using two specific consumer examples for six geographical areas: Denver, Pueblo, Sterling, Fort Collins, Grand Junction and Colorado Springs.
Below are six-month auto insurance policy rates for the following risk:
Household with two drivers (35-year-old married couple) with prior insurance, good credit history and no traffic violations.
2001 four-door Ford Taurus, used primarily for commuting; 13,500 annual miles.
Liability limits $100,000/$300,000 Bodily Injury (BI ), and $50,000 Property Damage (PD ); Uninsured/Underinsured Motorist (UM/UIM ) limits $100,000/$300,000.
June 2003: Personal Injury Protection (PIP ); on or after July 1, 2003: Rates were calculated both for including and excluding $5,000 Medical Payments (MP ) coverage.
The 2nd and 4th examples within each ZIP code also include $500 deductible collision coverage and $250 deductible comprehensive coverage.
Multi-line and multi-car discounts apply.
6-month policy in Denver ZIP 80203