One of the biggest drivers of inflation in America over the past few years has been car insurance. The cost of paying for insurance coverage on a vehicle has soared since 2020, especially in Colorado, which is now one of the worst states in the country in terms of cost.

In 2023, rates jumped an average of 23%, with the pace continuing this year. Rates are up another 16% in 2024 and experts say it could top out at 22% before the end of the year.

Steve Hakes is the owner of Rocky Mountain Insurance Center, a brokerage that helps Colorado consumers shop for carriers.

“Our mission is not really so much to focus on rate — although that’s what the commercials all focus on — but really trying to make sure people are covered well,” Hakes said.

According to Hakes, Colorado is 11th in the nation for auto insurance rates. Increased crime, more severe weather and a jump in accidents are all factors that contribute to that ranking.

Hakes’ coworker Becky Gramm shops for different policies daily as part of her role.

“When you think about the cost of cars and repairs and medical bills, all of that has gone through the roof,” Gramm said.

Her advice is to pay attention to the liability coverage and deductibles. While you might be saving money up front, it could cost you in the long run.

“Knowing what you have to come up with in the case of a claim is very important,” Gramm said. “Nobody wants to be surprised.”

So how can people save money? Hakes says one way is to look for discount opportunities insurance companies might be offering. That might include a special policy for those who limit the amount of miles they rack up.

Enrolling in a safe driving program can also lead to savings. That can often mean program enrolees must sign up for GPS tracking apps, which some are hesitant to do.

“That is a good way to own up to your driving. It’s like ‘You want lower rates? Great. We can get those for you.’ Years ago people kind of stayed away from it. Now, in order to save money, more people say ‘Really? Tell me more about that.'”