Voice of the Consumer: Colorado insurance rates

Anthony from Colorado Springs said he is upset that the cost to insure his home had gone up 55 percent and his auto policy had increased about 12 percent.

Carole Walker, the executive director with the Rocky Mountain Insurance Information Association, said a recent study by the Insurance Research Council shows Colorado is now ranked No. 2 in the nation for homeowner catastrophe claims for the years 2009 through 2013.

That doesn't include the costly 2014 hail season. "What is driving home insurance premiums is the pattern of catastrophic claims, in particular hail," Walker said.

The study also ranks Colorado No. 1 in the same five-year period for the average cost per homeowner claim. Colorado experienced a 179 percent increase in the average claim payment per insured home compared with the previous 12 years. The study found 54 percent of the claims submitted by Colorado homeowners were catastrophe- related. The Waldo Canyon and Black Forest fires were expensive disasters, but a July 2009 storm was worse. Insurance companies forked out $1.4 billion.

The June 2012Waldo Canyon fire had more than 6,600 claims and $454 million in insured losses. The 2013 Black Forest fire had estimated insured losses of $420.5 million.

One cost-saving measure is to increase your deductible. Walker said most consumers could save at least 20 percent on car and homeowner insurance if they raised their deductible.

For your car, check your vehicle's safety and security rating. Walker said many companies give discounts for vehicles with higher safety ratings and crash test results.

Vehicles with safety devices like anti-lock brakes, airbags, blind spot detection, and rearview cameras could bring a discount.

If your car is expensive to repair or a favorite among thieves, insurance will be more expensive. And if your ZIP code is considered crime central, that is factored into the amount. As for saving on homeowners insurance, factor in how far away you live from "quality fire protection." Premiums can rise by as much as 20 percent if your home isn't within 5 miles of a fire department.

Maintaining good credit is also important. Some companies look at how you handle your personal finances. You can't control Mother Nature, but you can be proactive. As we head into severe weather season, talk to your agent and go over coverage. If you want better rates, ask for them.

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Contact Betty Sexton:

at [email protected]

or call 457-8214