Colorado’s largest insurer to reduce average auto premiums next month
Reduction may signal an end to runaway inflation in auto coverage costs
State Farm Mutual Automobile Insurance Co., the largest insurer of cars and trucks in the state, said Thursday it plans to reduce its average premium starting on March 11.
That’s new because auto insurances rates over the last several years have been moving in one direction — up. The Consumer Price Index for Denver-Aurora-Lakewood shows they rose 13.9 percent last year, way ahead of the 2.7-percent gain in overall inflation. Nationally, auto insurance costs rose 4.6 percent last year.
Auto insurance premium increases have surpassed the rates of increases seen in health care costs and college tuition by a wide margin. And there didn’t seem to be an end in sight.
State Farm said that the average personal auto rate will drop by 3.7 percent for its nearly 850,000 customers in the state. That should translate into $29.8 million in savings for consumers. Next month’s decrease follows a 4.7-percent drop in June 2018 that saved customers about $40 million.
How much of a reduction any customer receives, assuming they do receive one, will depend on the policy and chosen coverages, said spokeswoman Tamara Pachal. The decline represents an average, and it is possible some consumers may still get a rate hike.
Full story on Denverpost.com.
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