Farmers insurance to ease rates in CO

By Rachel Brand, Rocky Mountain News

March 8, 2005



The state's No. 2 auto insurer will lower rates next month, following a statewide trend toward lower auto insurance prices.



Farmers Insurance, insurer of 480,000 Colorado autos, will drop rates an average of 3.2 percent on April 1. The firm also will offer steeper discounts to people who buy multiple policies for home, life and auto.



Some drivers could see up to 20 percent savings: people with expensive or frequently stolen car models, those who sign up for a $1,000 deductible and those with multiple policies.



"We're not seeing as many claims, and the cost of the claims are down," said Doug Compton, agency consultant for Farmers Insurance. He said consumers should get the decrease when they renew their policies but can ask for a midterm renewal.



The Progressive Group of Companies, the state's No. 6 auto insurer, filed a 5 percent average rate decrease last week, effective March 22. In December, State Farm Insurance lowered rates an average of 3.2 percent.



"This points to a trend," said Carole Walker, executive director of the Rocky Mountain Insurance Information Institute, crediting the switch from no fault to tort.



Colorado's auto insurance system reverted to a tort, or at-fault system, in 2003. Now the at-fault driver is responsible for all costs of an accident and can be sued.