DENVER - If the increase in your car insurance rate shocked you, you're not alone."I would say 30 to 40 percent," Lee Garcia, a Colorado driver said. "I'm not to happy about it."
According to NBC News, car insurance premiums are up nationwide.
Insurers are charging between 5 percent and 10 percent more on average.
In California, insurance rates jumped 7 percent.
In Florida, premiums went up 10 percent.
The average increase in Colorado rates is topping both states.
"We're seeing an average of at least 15 percent," Carole Walker, executive director of Rocky Mountain Insurance Information Association said.
Walker said even if you haven't had an accident or a ticket, you'll probably see your premium rise.
"We're seeing a huge number of people moving into Colorado," she said. "We have more drivers out on the roadways, whether that's gas prices that are dropping or more drivers on our roads."
Colorado is worse than other states because 2015 was the deadliest year on our roads since 2008, we're 2nd for hail insurance claims, and we're 2nd in the country for the highest increase in accident repair costs.
Further, Walker said Colorado laws make it easy to sue insurance companies and more claims end up in court.
Walker said insurers are having a tough time keeping up with payouts.
"The companies were just barely breaking even on what they were taking in in premiums to pay out claims," Walker said.
Insurers are required to file lengthy reports with Colorado's Division of Insurance to justify premium costs.
Colorado is what's called a "file and use" state for auto insurers, meaning the companies can begin charging premiums before the state reviews the filings and approves the rate.
Vincent Plymell, A spokesman for DOI, told 9NEWS in an email that if insurers charge too much, the division can pull back the rate.
However, he said the claim costs have skyrocketed so dramatically that insurers "could be asking for rates higher than what they are actually filing."
"In this environment where we're really seeing car insurance rates rise so dramatically, you really have to be a smart consumer," Walker said.
DOI's website has useful tools to help consumer shop around for the best rate: http://1.usa.gov/28NDO8y
Copyright 2016 KUSA
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Source: http://docphy.com/business-industry/personal-finance/insurance/colorado-car-insurance-jumps-15-average.html
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