An expensive New Year for auto insurance

MONTROSE – Those looking for ways to save a buck in 2009 won’t find it when it comes to their auto insurance.

A new Colorado state law passed by the Colorado legislature and the Colorado department of insurance, effective Jan. 1, now requires that all insurance companies provide a $5,000 minimum for medical coverage for any automobile policy holders.

Greg Bollig, Farmers Insurance Group agent, located at 1551 Ogden Rd., said the new law will probably increase everyone’s auto insurance, no matter what insurance company they are with unless of course they were already carrying medical coverage in at least $5,000 limit.

“It will probably add approximately $11-20 a car every six months in our area,” Bollig said. “But it’s not just Farmers, it affects all companies that sell auto insurance in the state of Colorado.”

The “Med-pay” coverage is to help cover immediate medical costs, which include emergency room fees and first responder to insured drivers and passengers, regardless of who is responsible for accident that occurred. Premiums will vary depending on which company a person is insured by.

“This law gives people the opportunity to insure themselves against the immediate costs associated with injuries from a serious car accident,” said Marcy Morrison, state of Colorado’s Commissioner of Insurance.

Karon Jacobs, a local All-State Insurance agent, said the state made the law to help those who are injured in an auto accident.

“The state probably looked at how many people in Colorado who were in accidents don’t have medical coverage,” Jacobs said. “People didn’t always have ways to pay their medical bills.”

Bollig said he was doing his best to make all of his clients aware of the rate increase and that those who were aware of it weren’t happy with its increase. He said most after explanation, however, understand that first responders and emergency personnel are important in the event of an emergency.

Jacobs said Allstate sent out letters to all of its clients explaining the change and are in the process of communicating directly with clients to make them aware of the new policy.

Ethan Jones of Montrose said while he didn’t like higher premiums, he saw the benefit of the rate increase.

“Anyone hates to have to spend extra money of course,” said Jones, who has State Farm insurance. “But I think from what I know now it seems as though this is an extra blanket of security in the event of a terrible accident. I guess I don’t mind spending just $20 extra every six months on auto insurance if it is for a good reason. It’s always better to be safe than sorry.”

While all insurance companies are required to include the med-pay coverage with new and renewal policies, consumers have the option to reject the coverage in writing.                                                                                                                                                                                                                                                                                                            

“People have had the option to have medical coverage for automobile accidents,” Jacobs said. “They still have the option. It is just highly recommended by the state to have this coverage.”

For more information, visit Dora’s Web site at www.dora.state.co.us.

You can contact Matt Lindberg via e-mail at mattl@montrosepress.com