According to The Zebra, an independent insurance comparison website, car insurance rates continue to rise steadily across the country, with the average rate up 28 percent over the past ten years. The site’s 2022 State of Auto Insurance report sifted through auto insurance pricing data to determine that the current national average rate for an “average” driver, a 30-year-old single male driver with a 2017 Honda Accord EX, is $1,529 a year.
The average rate in Colorado is slightly higher, at $1,687 a year. That actually represents an overall decrease from the year before. Colorado is one of 13 states that saw a slight decline in auto insurance rates in 2021, the site reports, while 37 states and the District of Columbia saw increases. Louisiana had the largest price jump – up 42 percent – making it the most expensive state in the nation for car insurance.
To keep ahead of surging costs in Colorado, it’s important to shop around and understand how insurance companies come up with the rates they charge, which can vary widely from one person to the next and between vehicles, too. Insurance companies determine your rate based on a variety of factors, including what kind of car you drive, your driving record, and who you are — your age, marital status, even your credit score.
It’s tempting to respond to rate increases by reducing your coverage to the minimum required by law. But as we’ve pointed out in other posts, that’s a bad idea, for several reasons. A lack of uninsured motorist coverage, for example, can cost you dearly if you happen to be hit by a driver who carries no insurance. Rather than risk being underinsured, here are some of the suggestions the report offers for cutting down on your insurance costs:
1. Increase your credit score by one-tier. Pay down your revolving accounts, reduce your reliance on credit cards, and take other steps to boost your credit rating, and you can save as much as 17% on your auto rate.
2. Make your next car purchase a used car. Insuring a 5-year-old model costs about 27% less a year than going with a brand-new one.
3. Pay in advance. Many companies offer discounts of as much as 10% to customers who pay in full and online.
4. Use a telematics device. Check and see if your insurance company offers a reduction in price if you have an onboard device that monitors your driving habits. A safety-minded driver can save around 4% this way.
5. Bundle it. Combining your auto policy with homeowner or renter’s insurance can save you 5-10% in overall costs.
6. Keep your coverage up to date. Insurance companies often charge their highest rates to people who have been inconsistent about maintaining coverage. Having continuous coverage for six months or more can save you another 5%.
THE CAR ACCIDENT LAWYERS AT FDAZAR
For more than thirty years the attorneys at Franklin D. Azar & Associates have helped thousands of injured people obtain complete and timely compensation for their losses. Our proven track record and expertise have allowed us to grow into the largest personal injury law firm in Colorado, with offices in Denver, Aurora, Thornton, Fort Collins, Greeley, Grand Junction, Colorado Springs, and Pueblo. If you’ve been injured in a bus, car, truck, bicycle, or motorcycle accident, you may be entitled to compensation. Please call the car accident attorneys at FDAzar day or night at 800-716-9032, or contact us here for a free consultation and no-obligation evaluation of your case.