Jared Polis, Governor of Colorado, announced his Roadmap to Reduce Auto Insurance Premiums, which aims to lower car insurance costs while enhancing public safety on Colorado roads. This statement was made in a press release.
“In Colorado, we are focused on saving people money and making Colorado the best place to live, work, and play,” said Jared Schutz Polis. “Auto insurance is too costly, confusing, and often a burden to many people; that is why I’m launching our action plan to reduce auto insurance rates, make our communities and roads safer, and deliver lower auto insurance rates to keep more money in the pockets of hardworking Coloradans.”
According to reports, Colorado currently has some of the highest auto insurance costs in the nation, ranking around fifth for full-coverage premiums. Factors such as hail, auto theft, and rising repair expenses contribute to these high costs. Polis’s Roadmap includes measures like speed cameras, sobriety checkpoints, anti-theft initiatives, consumer toolkits, and repair-shop oversight as strategies to alleviate pressure on rates. However, tort-reform advocates argue that Colorado’s increasingly plaintiff-friendly legal environment and higher damage caps could undermine these efforts unless lawmakers pair safety and enforcement steps with broader civil-justice reforms to address lawsuit and settlement costs built into premiums.
Independent data highlights why Coloradans feel financially strained. Bankrate estimates the average annual cost of full-coverage auto insurance in Colorado at approximately $3,200—over 20% above the national average and among the highest in the country. News reports indicate that compared with national costs near $2,600, Colorado drivers are paying significantly more each year even before considering teenage drivers or high-risk factors. Rising hail losses, past auto-theft rates, and general inflation in medical and repair costs all contribute to this situation. These figures underscore why high premiums and uninsured-motorist rates have become central political issues and why reformers see potential for deeper structural change beyond incremental regulatory adjustments.
While Colorado attempts to manage premiums, House Bill 24-1472 has significantly increased damage caps in civil cases starting January 1, 2025. For general personal-injury claims, the non-economic cap rose to $1.5 million while wrongful-death caps increased to $2.125 million—with automatic inflation adjustments every two years beginning in 2028. Defense-side analyses warn that these higher caps combined with broader eligibility for wrongful-death claimants will likely raise settlement demands and verdict exposure for insurers—potentially increasing liability and auto insurance premiums without offsetting tort reforms such as clearer procedural rules or more predictable damage frameworks.
Jared Polis is serving as Colorado’s 43rd governor after being first elected in 2018 following five terms in the U.S. House representing Colorado’s 2nd District and building several successful tech companies. His administration focuses on saving families money, expanding education options, and promoting innovation; however he also signed HB 24-1472 raising tort damage caps—a move closely monitored by insurers and business groups. The State of Colorado’s executive branch led by the governor collaborates with the General Assembly and judiciary to regulate insurance through agencies like the Division of Insurance while implementing safety initiatives such as the Roadmap—demonstrating how state policy choices on both regulation and civil justice directly influence what drivers pay.
