CO Auto insurance rates decline

The insurance industry released a survey Thursday that shows Colorado auto insurance premiums have dropped since reforms were implemented.



The survey was released by the Property Casualty Insurers of America and the Rocky Mountain Insurance Information Association.



The study claims that in the 18 months since Colorado shifted to a tort auto insurance system from a no-fault system, premiums have dropped. The study examined a 35-year-old married couple with the same risk factors and tracked what this couple paid in June 2003, August 2003 and January 2005. The industry found a drop of between 19.5 percent and 27.1 percent.



But the industry cautioned that doesn't mean everyone should see that decrease in premiums.



"People do need to understand that the change in systems doesn't change the way insurance works -- insurance costs will still vary from person to person depending on your individual risk factors, such as where you live, what you drive and how you drive," Carole Walker, executive director of the Rocky Mountain Insurance Information Association, said in a statement.



Part of the savings came from drivers no longer having to buy personal injury protection coverage, which was required under the no-fault system.