Smart Auto Insurance Blog

Auto insurance companies warn that a new bill in the Colorado state legislature could increase rates for motorists, claims Bob Mook of the Denver Business Journal. In 2003, the state switched to a tort system (where insurers pay a percentage of costs based on whose fault the accident was, going to court to settle disputes), but the Colorado No-Fault Motor Vehicle Insurance Act would reverse that change.

Governor Bill Ritter says that the tort system saves drivers about $322 per year on average, a 35% decrease from auto insurance rates under the no-fault system. A representative of the Rocky Mountain Insurance Information Association claims that Colorado auto insurance premiums have dropped from being the ninth-highest in the nation to 23rd-highest since the reform. According to Bob, insurance companies believe that no-fault insurance, where each insurer pays all expenses for their driver without assigning blame, is easily defrauded.

Allstate Insurance Company has filed a petition with the New Jersey Department of Insurance to increase their New Jersey auto insurance rates by 15.4% on average.

Allstate sited increased claims costs and expenses as the primary reasons that the rate increase is necessary.

If the rate change is approved by the department of insurance, it will only affect policy holders whose auto insurance policies became effective before September 2006.

New Jersey Auto insurance rates were already the 3rd highest in the country in the 4Q of 2008, behind District of Columbia, and Louisiana.