The causes of rising insurance rates vary by type of coverage, whether auto, home, or health insurance.
Auto Insurance
Auto insurance rates in Colorado have increased substantially over the past decade for several reasons. The cost to repair vehicles has risen significantly, driveBy more expensive parts and labor. Colorado is also considered a favorable state for personal injury litigation, leading to more frequent and larger settlements, which increases liability insurance costs.
An estimated 20–25% of Colorado drivers are uninsured, despite state law requirements. This drives up the cost of uninsured motorist coverage. In addition, many drivers carry only state-minimum coverage, increasing the cost of underinsured motorist claims. More vehicles on the road have led to more accidents, resulting in additional claims and higher premiums. Colorado has also experienced a sharp increase in car thefts over the past decade, further contributing to rising rates.
Home Insurance
Home insurance rates in Colorado have seen dramatic increases over the past 15 years. One of the primary drivers has been a rise in severe hail and windstorms, which have caused extensive damage to residential and commercial properties. For example, the May 2017 hailstorm that impacted the western suburbs and north Denver caused more than $1.4 billion in damage.
The cost to repair property damage has also increased substantially. Major events such as the 2021 Marshall Fire resulted in significant insured losses. When disasters occur, insurers must pay claims and then replenish their financial reserves, which often leads to higher premiums.
Health Insurance
Health insurance for individuals under age 65—often referred to as Obamacare or the Affordable Care Act (ACA)—has also seen rising costs. Medical care expenses have increased rapidly, and utilization has grown as people live longer and require more complex treatments.
Government regulations mandate coverage for numerous benefits, which raises premiums. The ACA also requires insurers to accept applicants regardless of pre-existing conditions. This has contributed to what is often called a “death spiral,” in which healthier individuals drop coverage, leaving insurance pools with a higher percentage of less-healthy members and increasing costs overall. Additionally, the temporary expansion of premium subsidies expired on December 31, 2025, returning subsidies to original ACA levels.
Best Practices to Reduce Insurance Rates
One of the most effective ways to manage insurance costs is to regularly review your coverages to ensure they are appropriate and up to date. Shopping for insurance can be beneficial, but it is important to compare policies carefully. Some call centers may reduce coverage levels to show a lower premium, which can be misleading.
If your vehicles are older, it may not make financial sense to continue carrying comprehensive or collision coverage. You may also consider a higher deductible for windshield coverage.
For homeowners insurance, increasing deductibles can help lower premiums. Be cautious about filing small claims that fall near or just above your deductible, as these claims may have little payout but can significantly impact renewal premiums. Homeowners insurance is not intended to function as a maintenance policy, and frequent small claims can lead to higher rates or even non-renewal.
Factors That Influence Insurance Rates
When determining home and auto insurance rates, insurers evaluate many factors, including:
Age, marital status, and the presence of youthful drivers
Driving record, citations, and accident history
Number of claims filed
Property location and vehicle type
Age of the home, roof, and vehicles
Insurance-based credit scores
Fire danger scores
This is only a brief overview, as insurance is often complex and highly individualized. Many factors are unique to each person’s situation. Working with a trusted, local, and experienced insurance professional can help navigate coverage options and ensure policies are structured appropriately.
