Why Did My Colorado Auto Insurance Rates Just Go Up?

Why Did My Colorado Auto Insurance Rates Just Go Up?

There's nothing more aggravating than going in to renew your policy only to find out that you're going to be paying more for this year's coverage than the year before…or the year before that…or the year before that! As a matter of fact, you could be paying more for the same level of insurance coverage from your Colorado auto insurance provider this year than you ever have before. (I'm not saying it's so, I'm just saying it's possible.) The question is, why?

Do you know what's sending your insurance rates sky high?

There are actually many reasons that your Colorado auto insurance rates could go up. For starters, if you were in an accident this year you can expect your insurance rates to increase by as much as 40% for the following year. Insurance companies really, really don't like having to pay for auto insurance claims, and the fact that they did means that they're going to take their investment out in an increase in your premiums.

You can also expect your auto insurance rates to go up if you've bought a new car in the past year that's slightly less insurance friendly than your previous one, if you've moved to a high risk area where traffic accidents are more common than being able to find a parking spot near your building or if you were convicted of a traffic violation of one sort or another, like running a red light or speeding. (The judge has to actually say you did it, however, for it to pop up on your driving record and a make a difference to your Colorado auto insurance provider.)

Of course, every once in a while you'll turn around and see your auto insurance rates go up for no apparent reason. Before you pick up the phone and call your Colorado auto insurance company a veritable den of thieves (you laugh, but it's been done before) take a deep breath and a step back. There are plenty of things going on in the world that you have no control over that could be doing bad, bad things to the cost of your insurance.

For starters, let's talk inflation. Have you noticed how it costs you more for just about everything these days than it did five or ten years ago? That's inflation, and inflation is affecting absolutely everything-including the cost of medical care and auto repair. Want to guess who cares about that sort of thing (besides you)?

Right. Every Colorado auto insurance provider from Wrey to Cortez.

Auto insurance rates are loosely regulated by the state, but every once in a while those regulations will allow insurance companies to raise their rates for one reason or another (usually because they've got to deal with inflation!). When that happens you can expect to see a change in your rates as auto insurance companies jump on the bandwagon to help compensate for the amount of money they've got going out.

There are more reasons that your Colorado auto insurance company might raise your rates than most dogs have fleas. Some things you can change. Some things you can't. It's up to you to figure out which category your rate hike falls under and deal with it accordingly.

Keeping in mind the poor agent you get on the phone didn't want to see your auto insurance rates go up any more than you did.

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