Colorado Median Insurance Rate Decreases while National Median Increases

Posted & filed under Car Insurance, Colorado Car Insurance, Rate Watch.

InsuranceWeb is reporting a favorable change to auto insurance premiums in Colorado: according to their sources, the medium six month car insurance rate in the that state has decreased to $816, which represents a three percent drop over the last six months.

As with most states, there are different insurance trends for different segments of the Colorado population. These include:

  • Colorado men pay roughly 8% more than Colorado women.
  • Colorado drivers under the age of 19 pay rates over 100% higher than those between the ages of 60 and 74.

The rate decrease in Colorado is especially significant in light of the national median rate increase of roughly the same amount – 3% – over the same six-month period.

Colorado is currently #24 in the “affordability factor” ranking of state insurance premium averages. In other words, a household in that state where earned income is the median annual income of $47,158, and the insurance premium paid is also the median $816 is paying roughly 3.5% of it’s gross income for auto insurance. Using this formula, Massachusetts is the most affordable, with a factor of 2.0%, while Louisiana, where the median amount of gross income spent on car insurance is 7.6 percent, is the most expensive.