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.

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.

Market Watch said many of the factors that drove rates up in the Centennial State were the same things driving up prices across the U.S., but some were more specific to Colorado.

One thing that made car insurance rates go up across the country had to do with the pricey used car market. Used car values are beginning to drop, with the consumer price index for used vehicles decreasing 3.8% from November 2022 to November 2023.

But that drop only comes after a 41.8% increase in used car prices over the prior two years. That means insurance companies were paying far more on totaled vehicles than in prior years due to the higher market value.

Additionally, the cost of medical care has gone up in recent years. From Nov. 2020 to Nov. 2023, medical care rates went up 6.2% nationally. Market Watch said medical payments given to drivers injured in a crash are some of the biggest sources of claim payouts for auto insurance providers.

“As a result, increasing medical costs boost insurers’ expenditures and translate to higher premiums for drivers,” the report read.

Market Watch noted that car thefts can result in damage and sometimes total loss claims for vehicles.

“When car owners have comprehensive coverage as part of their policy, damages resulting from attempted or successful auto thefts are paid for up to their coverage limits. Because of that, local car theft rates play a key role in the auto insurance premiums given to policyholders,” the report reads.

Colorado’s auto theft rates dropped last year, but the Centennial State still had the worst auto theft rates in the nation.

The National Insurance Crime Bureau reported 731 car thefts per 100,000 residents in 2022. The highest car theft rates in the nation were near Pueblo, where 1,086 thefts were reported per 100,000 residents.

Denver had the third-highest auto theft rate, with 1,062 car thefts per 100,000. Greeley was also in the top 10 nationally, with 589 thefts per 100,000 residents.

In total, Colorado was home to 42,706 auto thefts in 2022. Wisconsin, which has almost the same population as the Centennial State, only had 11,709 car thefts. Colorado’s concerning number of auto thefts has likely led car insurers to charge drivers more due to heightened risks.

With the way things stand, if theft rates and prices continue to rise, drivers in Colorado may face even higher insurance costs before 2024 runs out.