There are a multitude of reasons of why insurance has been on the climb the last few years here in Colorado, but there are some reasons that you may not be aware of.
1.The first reason is probably a more well known reason and that is claims. The front range over the last 3 years has been hit with multiple hail storms resulting in millions and millions of dollars worth of damages and claims. As a result, whether we agree with it or not, insurance companies raise rates across the board due to those claims. So even if you are living in the SW part of Colorado, far from the front range, more than likely, you are going to get hit with a rate increase due to their losses.
2.Second on the list is Marijuana. Yes that is right, Marijuana is impacting your auto insurance rates.Why? Well because you now have drivers on the road more and more driving under the influence of the legalized drug. This in turn causes more risk on the road and more accidents, which means more claims and more money that insurance companies are paying out. Ultimately raising our rates.
3. Moving on we come to number 3, which is tourist. Colorado over the recent years has become a desired destination for vacationers from all around. That means more people on the road, more risk, more accidents, and you guessed it…More claims.
4. Number four is some what intertwined with number three and that is Colorado’s population growth is spiking. Just like our number three reason, that means we have more cars on the road, more risk, more accidents and more claims.
5. Last on our list, that is causing rates to increase, is the advancement of technology. Every year new vehicles are manufactured and have more technology, which cost more to repair than ever before. This makes the cost of the average claim higher. In today’s world, newer vehicles now have backup cameras, window sensors, radar, impact warning systems, and even self-driving or self-parking features. In the past, if your vehicle was damaged you could take it to a local mechanic and have it repaired or you could even attempt to fix it yourself. Now, with the technology found in newer vehicles, many mechanics are unable to complete all necessary repairs since it often takes special training to repair damaged technology. As a result, more and more vehicles are being taken back to the dealership for repairs. This tends to come with a higher repair cost. Since mechanics are losing business to dealerships, many shops have been forced to increase their labor costs to make ends meet.