How Much Would It Cost to Increase Colorado Auto Insurance Coverage?

Colorado stateOwing to both the wide variation in Colorado insurers’ pricing formulas and the differences that exist from one driver to the next, it is impossible to give a one-size-fits-all answer to this question. But a premium comparison published by state regulators in July 2011 indicates that the price of doubling liability coverage from the state-required minimums could range from as little as a couple dollars to as much as couple hundred dollars a year depending on the insurer, with the average premium increase coming in at about $52 a year.

The comparison includes sample Colorado auto insurance rates from 63 insurers for a 35-year-old who lives in Denver and has no accidents. Quotes are given for 25/50/15 liability coverage (the state-required minimum), as well as 50/100/25 and 100/300/50.

According to the data included in the premium comparison, average increases could look something like the following:
  • Going from 25/50/15 to 50/100/25: average increase of 5 percent
  • Going from 50/100/25 to 100/300/50: average increase of 6 percent
  • Going from 25/50/15 to 100/300/50: average increase of 11 percent
(In addition to liability, uninsured motorist, medical payments, comprehensive and collision coverages were included in the comparison.)

Why Increase Liability Insurance?

Liability coverage goes to pay for bodily injury damages and property damages that were caused by the policyholder, but insurers only pay up to a certain dollar amount per accident. Anything over that dollar amount will likely have to be paid directly by the policyholder.

So in order to minimize the chances of having to pay out of pocket for damages caused behind the wheel, some Colorado policyholders decide to go above the state-required minimums of $50,000 for injury damages per accident and $15,000 for property damages per accident.

Size of Premium Increase Largely Depends on Provider

While the average premium increase associated with going from the state minimums to 50/100/25 coverage was only 5 percent, the percentage increase among the 63 companies varied widely.

According to the rates included in the comparison, the lowest premium increase for this jump was under 1 percent, and the highest came in at 16 percent. But even paying 16 percent more may be worth it since insurance levels almost double when going from the state minimum to 50/100/25.
The premium increase associated with going from the state minimum to 100/300/50 coverage came in at an average of 11 percent. The lowest increase was 1 percent and the highest was 31 percent.
Colorado state flag
To see how much it would cost for a particular driver to increase levels of financial protection, shoppers can generate multiple auto insurance quotes online and see how prices fluctuate in different coverage scenarios.