In a move to reduce collisions – particularly those involving wildlife and pedestrians – the Colorado House of Representatives has enacted House Bill 1303, which would create a crash prevention enterprise funded by a fee of up to $3 on every insured vehicle in the state.
This new bill intends to fund infrastructure projects such as wildlife crossings, red-light cameras, and pedestrian and bike path improvements.
Supporters argue the measure will improve safety and eventually lower auto insurance premiums. The bill cites a 77% rise in pedestrian fatalities in Colorado from 2018 to 2023 and more than 1.1 million wildlife collision claims filed nationwide in 2020 and 2021. The initiative is set to launch fee collection in July 2026, with insurers required to collect half of the fee every six months.
But trade groups remain unconvinced that the measure will lead to meaningful insurance savings. “Telling consumers they’re going to pay an extra $3 to fund these projects—while well-intentioned—won’t significantly impact auto rates,” said Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
The real cost for drivers in Colorado’s auto insurance market includes legal system abuses, catastrophic hail damage, impaired driving, and high repair costs, she said. “Colorado ranks 42nd for wildlife crashes, and adding a fee to address that won’t move the needle on what consumers actually pay,” Walker said.
The state’s high litigation costs catapults Colorado as having one of the highest rates of civil suits and “one of the most unreasonable delay and denial standards in the country.” Walker urged lawmakers to focus instead on tort reform to reduce legal abuse, arguing that “TV trial lawyers are making big bucks off damages” at the expense of insurance affordability.
Despite concerns, however, the bill is likely to pass in some form. It follows the recent House approval of HB 1302, which would create wildfire reinsurance and home mitigation project enterprises funded by a 1% fee on all property insurance policies statewide. The latter aims to stabilize Colorado’s homeowners insurance market, where coverage has become increasingly difficult to obtain due to rising wildfire and weather-related risks.
Do infrastructure projects justify the added fee for drivers? Let us know what you think.
