A bill that would have created special insurance coverage for low-income Colorado drivers was defeated on the House floor. H.B. 1089 would have established a reduced-limits auto policy for low-income consumers, similar to a bill that was recently passed in California.
Although the bill did not include a mandatory offer, insurers were concerned that it would be amended to make it a mandatory offer, according to Michael Harrold, Northwest regional manager for the National Association of Independent Insurers. NAII opposed the measure.
“The Colorado House made a wise decision when it voted down this bill,” Harrold said. A low-cost auto bill is especially unnecessary in Colorado, where state law already exists to offer reduced coverage to low-income drivers, he said.
The current law allows insurance companies to equitably price the low-income policies, while H.B. 1089 would have required insurers to give preferred rates to all low-income drivers. “Mandatory systems are both actuarially unsound and unfair because they create a system where good drivers subsidize bad ones.”
Topics Auto
Was this article valuable?
Here are more articles you may enjoy.
Experian Launches Insurance Marketplace App on ChatGPT 
Insurance Issue Leaves Some Players Off World Baseball Classic Rosters 
The $10 Trillion Fight: Modeling a US-China War Over Taiwan 
A 10-Year Wait for Autonomous Vehicles to Impact Insurers, Says Fitch 
