15 Factors That Influence The Cost of Auto Insurance

Drivers in Colorado, like many other states, must carry auto insurance. The cost of auto insurance seems to be rising though, which may make you wonder what is driving the rise in rates. Understanding more about your insurance coverage is important if you get into an accident since you will need to make a claim.

Car owners in Colorado are required to carry liability insurance. This insurance covers bodily injury to another person or property damage to another driver’s car or property should the insured person be at fault.

According to Casares Law Firm, the trend of rising rates for car insurance has continued due to a number of factors. While it might be helpful to shop around for the best rates, there’s no denying that quality coverage is most important when protecting yourself and the ones you love.

Here are the factors that have been driving the cost of auto insurance in the state.


In every state, location is a huge part of the equation for the cost of auto insurance. Certain areas have a greater risk for accidents which means the people located in those zip codes will pay a higher premium. This is due to larger populations, probability of natural disasters, and potential crime rates.

Weather Conditions

Colorado’s crazy weather brings in hail, blizzards, tornadoes, and floods. With these kinds of disasters on the rise, they result in more claims. Denver County by far has the most.

Cost of Living

When the cost of everything around you rises, you can expect that this will also happen to your car insurance costs. Business operation costs are up and so are your rates. 

Crime Rate

Tying in with location, the crime rate in your area can make your insurance costs skyrocket. The state of Colorado led the nation in car thefts for 2021. With greater risks for insurers, the rise in auto insurance costs are passed along to drivers, especially in Denver.


Men statistically have an increased incidence of auto accidents. With a more competitive spirit, they also tend to be heavier on the gas pedal and more prone to speeding. This leads to a greater chance of accidents and as a larger risk to an insurer, you’ll have a higher rate.


Age isn’t just a number when it comes to the cost of auto insurance policies. Both the young and the elderly have higher insurance rates. Inexperienced drivers have a high risk of being involved in car accidents. Likewise, the elderly have slower reflexes and hampered vision. Along with other medical problems, it also makes them more prone to accidents.

History of Claims

Have you made claims on your insurance before? Having a high number of at-fault claims will most certainly drive up the cost of your auto insurance.

Credit Score

Most drivers don’t realize that credit can play a role in their auto insurance costs. Drivers that have good credit tend to be less risky on the roads too. If you get your credit score in a good place, you may find your rates to be better.

Type of Vehicle

The kind of car you drive and its condition will also be reflected in your auto insurance costs. Coverage premiums always depend on the value of a car, hence your new or luxury vehicle will cost more to insure.

Vehicle Usage

The more miles you go with your car, the more you’re on the road. This means you will have an increased risk of car accidents through more frequent driving. If you have low mileage on the road, you’ll be more likely to get a lower car insurance rate. 

Marital Status

If you’re married, this makes you a low-risk driver. Marriage indicates both maturity and stability to insurers. Thus, the rates for those in wedded bliss will be lower.

Increase in Repair Costs

Since inflation has affected every sector, the cost to repair a car has increased. On top of that, with more modern features in newer vehicles, those items cost more to repair too. When the cost to repair a car becomes greater, this will also impact the rate you pay for car insurance.

Increase in Medical Costs

Medical care costs have also risen with no signs of slowdown either. This has made insurance premiums for cars grow too. With more drivers on the road than ever before, the chance for car accidents is greater now. Injuries that result from these accidents mean that insurers are footing the bill, and as such, your rates will rise.

Recreational Marijuana Usage

With the legalization of recreational marijuana use in Colorado, it is believed to be a factor in the increase in car accidents. Even though it is legal, it can still impair driving. Across the country, being under the influence is one of the main causes of car crashes. 

Increased Number of Uninsured Motorists

Since all these factors tend to overlap, there is a huge trend with drivers not getting the required insurance by law to save money. If you are in an accident with an uninsured motorist, it can leave you stuck with huge medical bills and repair costs. Depending on the severity of your injuries, you may not be able to work for a while, which will only cause your debts to increase.

Colorado is an at-fault state, meaning that you may be able to sue the responsible party if you are hurt or have damages in a car accident. From rear-end collisions to more serious impacts, you can file a claim to gain compensation for your losses. Every driver in the state must obey the law to carry $25,000 per person for bodily injury, $15,000 for property damage, and $50,000 total per accident for bodily injury.

If you were in an accident with a driver that doesn’t have this basic coverage, it’s important to speak with a personal injury attorney to make sure you don’t suffer the consequences.