Colorado’s major automobile insurers are reportedly urging lawmakers to reject a last ditch no-fault auto insurance reform plan that would offer no cost saving for policyholders.
Members of the National Association of Independent Insurers (NAII), which consists of the state’s major automobile insurance writers have been joined by State Farm and others to voice their strong concern that lawmakers will miss this golden opportunity to give their
policyholders the cost relief they are demanding. Together, these companies represent close to 70 percent of the private passenger auto insurance in Colorado.
“Between the alternatives currently before lawmakers, returning to a tort or fault system is the best answer for giving consumers what they want – rate relief,” Michael Harrold, senior director, state government affairs for the National Association of Independent Insurers (NAII), said. “The No-Fault Reform Bill, SB 78, simply does not go far enough to fix the current system and it’s becoming all too clear that additional amendments being pushed by special interests will only result in higher costs to auto insurance consumers.”
Motorists in Colorado are reportedly paying the 11th highest auto insurance rates in the country due to the expensive and broad medical coverages drivers are forced to buy under the state’s no-fault system. As costs have spiraled out-of-control, the average personal injury protection (PIP) premium has skyrocketed by as much as 80 percent over the past two years.
While Colorado auto insurers have always supported aggressive no-fault reform that would provide lower costs and good benefits, this final legislative push to save no-fault reportedly ignores the fact that there is another viable option to fix the system. HB 1188 reportedly replaces the broken no-fault law with the more common
It is estimated that HB 1188 could save Colorado policyholders between 25 and 36 percent off the current state mandated liability coverage, which could add up to a savings of $176 per car.
For those policyholders who choose to purchase optional comprehensive and collision coverage, savings under a tort system are estimated to be between 15 percent and 20 percent, or up to $140 per car.
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