Study Shows Consumers Save Under Auto Reform in CO
On Wednesday the American Insurance Association’s (AIA) Regional Vice President Fred Bosse highlighted key findings in an independent study released by Colorado Governor Bill Ritter’s office this week.
“Five years ago insurers, policymakers and consumers in Colorado came together to make meaningful reforms to an auto insurance system that needed help,” Said Fred Bosse, AIA Regional Vice President for the Southwest. “The results of these important changes to Colorado’s auto insurance system have taken hold and are delivering savings to consumers across the state.”
In November 2007, Governor Bill Ritter’s office commissioned an outside research firm to address questions about the effects of Colorado’s change nearly five years ago from a no-fault auto insurance system to a more traditional tort-based system. The tort system is used in 37 other states across the country.
According to the independent study the cost of auto insurance in Colorado has fallen 35% from the time of the transition. Additionally, Colorado’s national ranking for cost of auto insurance fell from 9th highest in 2002 to 21st in 2005. On average this translates into $322 less per car for a years worth of auto insurance.
“Most people agree that the objective of these particular auto insurance reforms was to narrow the scope of the insurance costs in order to provide a direct benefit to consumers,” said Bosse. “This independent study confirms that the system change has delivered measurable savings to consumers making auto insurance more affordable and available in Colorado.”
Source: Sourc: AIA Press Release | Published on February 21, 2008
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