Tolulope Omotunde, an author for Afrik Digest, said that the cost of insurance coverage for vehicles has increased significantly since 2020, particularly in Colorado. This development has positioned Colorado as one of the most expensive states for drivers. The statement was made in an article for Afrik Digest.
"One of the biggest drivers of inflation in America over the past few years has been car insurance," said Omotunde. "The cost of paying for insurance coverage on a vehicle has soared since 2020, especially in Colorado, which is now one of the worst states in the country in terms of cost. Rates are up another 16% in 2024 and experts say it could top out at 22% before the end of the year. Colorado's concerning number of auto thefts has likely led car insurers to charge drivers more due to heightened risks."
According to Axios, auto insurance premiums in Colorado have risen sharply, with average annual rates now among the highest in the country. Catastrophic weather events and a surge in property and injury claims have driven up costs for insurers. However, legal system expenses also play a significant role. Tort-related factors—such as large jury awards and frequent lawsuits—add to the upward pressure on car insurance premiums in the state.
The Economic Policy Institute reports that tort costs, including legal fees and damages from auto accident lawsuits, directly affect the price of car insurance for Colorado drivers. When these costs increase, insurance companies typically raise auto premiums to offset the higher risk of large payouts. Rising tort costs are identified as a major driver behind higher auto insurance rates as insurers adjust their pricing to manage escalating legal liabilities.
According to Reinsurance News, research from the Insurance Information Institute indicates that the rise of legal advertising and third-party litigation funding by trial lawyers has contributed to a greater number and size of car insurance claims in Colorado. These practices increase the overall cost of resolving disputes for insurers, who pass those expenses onto consumers through higher premiums. Legal trends have become a key factor in driving up auto insurance costs in many states, including Colorado.
Omotunde writes for Afrik Digest, a publication covering news, analysis, and stories affecting African communities and the diaspora with a focus on current affairs, culture, and economics. Afrik Digest is recognized for providing perspectives on issues relevant to both African and broader audiences.