New Bill Raising Rates in Colorado

A new bill being considered by the Colorado Senate Appropriations Committee would increase car insurance rates for drivers by about $200 per car, per year. The bill would change what is mandated car insurance coverage and what isn’t.

Senate Bill 193 would make medical payments coverage mandatory for all drivers when they start a new policy or renew their existing policy on or after July 1st of this year. Most drivers choose not to have the currently optional car insurance because they have health insurance that covers their medical bills should they be in a car accident.

The new coverages would double up on insurance for most drivers, and force them to pay double what they are paying now. It would also harm veterans and older drivers who currently get their health insurance for free – as it would cost them to pay for this new car insurance on top of what they are already paying.

The bill would automatically renew the coverage so consumers would have to know to cancel the insurance in writing, or they would have to pay double – some without even knowing that it is on their policy to start with. The car insurance companies are against the bill as they know that it will end up costing their insureds more money than they can afford, and they will end up with more uninsured drivers because of it.
 

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