Coloradans face car insurance price hikes

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DENVER -- While many Coloradans are expecting a health insurance spike, another form of an insurance seems poised for big increases too.

According to the federal government, car insurance premiums had the biggest increase in more than a decade in April across the country.

The bad news is that Colorado might be seeing some of the biggest increases of any state.

“These trends are on a collision course,” said Carole Walker, spokeswoman with the Rocky Mountain Insurance Information Association. “We are seeing rates go up double digits."

A combination of issues seems to contribute to the cost.

More people have moved to the state, making roadways busier. Also, traffic fatalities increased in Colorado in 2015. Not to mention gas prices are low so more people are traveling.

“It is also very easy to sue your insurance company for bad faith,” Walker said.

Walker said new laws in Colorado allow for more lawsuits and higher payouts than other states. And then there is the weather.

“We are the second-worst state for hail damage-related claims,” Walker said.

As for what you can do, Walker advises you contact your agent. While you cannot lock in a rate long term, sometimes discounts are offered for things such as automatic payment each month.

“It is important for you to be a smart consumer,” Walker said.

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