Joseph Ramos, a medical doctor and attorney at Ramos Law, has highlighted a significant increase in auto insurance premiums in Colorado. According to Ramos, these premiums have risen by over 53% in the past decade due to rising repair costs, medical expenses, and high auto theft rates. This statement was made in a post for Ramos Law.
"Colorado is the 11th most expensive state for car insurance, with predictions of becoming the fourth highest by 2033," said Ramos. "Average annual premiums have risen by over 53% in the last decade. The insurance industry attributes the increased costs to the rising price of vehicle repairs and replacements, skyrocketing medical expenses, frequent hail storms causing body damage, and Colorado leading the nation in automobile thefts per capita. Insurance companies are not blaming attorneys or lawsuits this time, likely due to Colorado's severe caps on insurance claims and lawsuit payouts, which significantly reduce large verdicts."
High tort costs can influence state economies by increasing business expenses and affecting the overall economic environment. Studies indicate that states with higher tort costs often experience slower economic growth and reduced job creation compared to those with more balanced legal climates. The U.S. Chamber Institute for Legal Reform suggests that excessive tort costs may decrease a state's attractiveness to businesses and impact local employment rates.
Colorado's cap on noneconomic damages in personal injury cases was initially set at $250,000 in 1986 and has been periodically adjusted for inflation, currently amounting to approximately $613,760 as of 2024. The Colorado General Assembly states that this cap is designed to provide predictability and limit the financial impact of lawsuits on businesses and insurers. These limits are believed to help stabilize insurance premiums and overall business costs within the state.
The Perryman Group's report estimates that removing noneconomic damages caps in Colorado could lead to a $2.1 billion annual loss in gross state product and a reduction of about 15,500 jobs, including multiplier effects across related sectors. The analysis also projects further losses in personal income and state/local tax revenue if such caps are lifted. These projections are based on economic modeling and an examination of potential increases in legal system costs.
Ramos is both a board-certified medical doctor and licensed attorney, founding Ramos Law with a focus on personal injury, auto accident, and consumer protection cases. He is recognized for his dual expertise and dedication to client advocacy. He has received the Martindale Hubbell Client Champion award and is listed among The National Trial Lawyers Top 100.