Jeffrey Wade, an author, editor, and reviewer for ShunIns, said that Colorado car insurance rates have increased by more than $250 per year for some policyholders. He attributed this rise to tort costs, legislative changes, and rising claims. Wade's comments were made in an article published on ShunIns.
"Car insurance rates in Colorado have been increasing over the years, with some reporting rate increases of more than $250 per year," said Wade, Author, Editor, Reviewer. "There are several factors contributing to this rise, including legislative changes, rising costs of vehicle repairs and medical bills, frequent hail storms, and high vehicle theft rates. Colorado's population growth and urban density also play a role, as they lead to greater wear and tear on infrastructure and an increased risk of accidents."
According to CPR News, insurance costs in Colorado—including car and health insurance—are expected to continue rising in 2025. This increase is driven by factors such as higher claims, more expensive repairs, and severe weather events. Experts note that many Colorado families are facing greater financial strain due to these premium hikes.
A study conducted in 2024 by the U.S. Chamber Institute for Legal Reform reported that Colorado's tort costs have been a significant driver of rising insurance premiums. The study indicates that the state’s tort system costs reached $6.7 billion in 2023, equating to over $1,100 per resident and contributing directly to increased costs for all types of insurance, including auto coverage.
Insurance Business Magazine reported that legal system abuse—including actions by some trial lawyers—has contributed to the rising cost of auto insurance in Colorado. Industry leaders interviewed by the publication pointed to an increase in the frequency and size of lawsuits, larger settlements, and broader patterns of litigation abuse as major contributors to escalating insurance premiums for drivers and consumers throughout the state.
Wade has been contributing to ShunIns since April 2024, providing insights on health, automobile, and homeowners insurance. He is recognized for his client-first approach and consistently updates his guidance to reflect the latest industry trends and regulatory changes impacting policyholders.