Colorado Auto Insurance Rates to Increase
9 News Colorado reports that a new state law (which came into effect on January 1st) is likely to increase auto insurance rates for Colorado drivers. The law requires insurance companies to automatically enroll policy-holders into a MedPay plan that provides an additional $5,000 in medical coverage. Ever since Colorado repealed its no-fault auto insurance law in 2003, there have been many problems surrounding the reimbursement of medical costs caused by an accident. This program is intended to fix many of these issues. Consumers can only opt out via a written form.
The extra coverage can increase your yearly premiums by $40 to as much as $1,200 per car, depending on your auto insurance rate. MedPay coverage isn’t really necessary if your health insurance covers car accidents, but a lot of policies don’t. Experts say you should think carefully before trying to reduce your auto insurance premiums by dropping out of the program; if you end up in a crash not covered by your health care plan, you may end up paying far more in the end.
More information about Colorado auto insurance.
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Tags: auto accidents, Auto Insurance Premiums, car accidents, colorado auto insurance, medical coverage, medpay, no-fault insurance
