Q: Who determines the rate for a Colorado automobile insurance quote? Is it the state or is it determined by the car insurance companies? A: Currently the auto insurance industry sets the rate for what they will charge for a policy in Colorado.
A Colorado automobile quote can differ by hundreds of dollars from company to company.
There is legislation in Colorado right now that could change this however.
the house of representatives is currently debating whether the state should have more control over insurance costs.
Under current state law insurance companies can raise rates simply by notifying the state.
Under the proposed legislation the insurance industry will have to seek prior approval from the state before raising rates.
Proponents of the legislation claim that the new laws would prevent insurance companies from arbitrarily raising rates.
Opponents argue that by regulating the companies out of the free market many companies will simply choose to leave the state.
So for now, at least, the Colorado automobile insurance quote you receive is set by the insurance industry.
Factors that companies take into account before deciding on what your policy will cost are, whether you're married or not, your credit history, what type of vehicle you drive, and of course your driving record.
Lastly, we strongly encourage you to take a few minutes to compare auto insurance rates online from different companies.
Comparing quotes is one of the best ways to save money on your automobile coverage, and it is something that many drivers overlook.