DENVER (KDVR) — Colorado was among several states where auto insurance rates increased substantially over the last year.
A report from Market Watch found that the typical full-coverage car insurance premium in Colorado went up by 16.8% in 2023.
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Because of the things that influenced rate hikes last year, Market Watch said drivers could see similar increases in 2024.
Why did car insurance rates soar across the country?
Market Watch said many of the factors that drove rates up in the Centennial State were the same things driving up prices across the U.S., but some were more specific to Colorado.
One thing that made car insurance rates go up across the country had to do with the pricey used car market. Used car values are beginning to drop, with the consumer price index for used vehicles decreasing 3.8% from November 2022 to November 2023 .
But that drop only comes after a 41.8% increase in used car prices over the prior two years. That means insurance companies were paying far more on totaled vehicles than in prior years due to the higher market value.