Mark Hillman, executive director of the Colorado Civil Justice League, said in a Jan. 2 column that targeted legislative changes are needed to address the root causes behind Colorado’s high auto insurance premiums. Hillman’s remarks respond directly to Gov. Jared Polis’s “Roadmap to Reduce Auto Insurance Premiums” and highlight the gap between current policy and effective premium relief for drivers and homeowners, according to a column republished on the Colorado Civil Justice League website.
Hillman said full coverage auto insurance costs Colorado drivers an average of $3,233 per year, which is $600 more than in any bordering state and nearly twice what Wyoming motorists pay. The increase in auto insurance premiums in Colorado has been worse than in all but four states, with home insurance rates growing faster than anywhere else in the nation since 2020. These elevated costs affect every Colorado family and business that relies on vehicle coverage, according to data cited by Hillman.
In his column, Hillman said that if lawmakers wanted to reduce insurance premiums they would need to reform three specific statutes that have driven higher premiums. He said these reforms would likely face significant resistance from attorneys who benefit from current litigation practices. “A common axiom among billboard lawyers recognizes that if a case drags out for five years, the plaintiff can get an extra 50 percent in interest. If lawmakers really wanted to reduce insurance premiums, they would reform these three laws. Of course, doing so would incur fierce opposition from lawyers whose advertisements boast about delivering enormous judgments verdicts for clients. Meanwhile, every Coloradan pays more to insure our homes and vehicles,” Hillman said.
According to Hillman’s column, Colorado law allows successful plaintiffs to collect interest on claims at 8 percent or 9 percent per year from the date of damage or injury until settlement. Most other states tie judgment interest rates to the federal prime rate plus one or two percent or set much lower fixed amounts. The higher rate creates an incentive for cases to remain open longer while medical bills presented to juries often reflect phantom damages that are two to four times the amount actually paid by insurers.
Hillman previously served as Colorado Senate Majority Leader and State Treasurer before becoming executive director of the Colorado Civil Justice League. In his current role he has advocated for balanced civil justice reforms aimed at reducing unnecessary litigation costs while preserving fair compensation rights for injured parties.
