STATE FARM LOWERS RATES IN COLO.:

State Farm Mutual Automobile Insurance Co. said it will lower its rates in Colorado by 5.9 percent starting July 1, according to the Greeley Tribune. The rate decreases will affect thousands of people living in Colorado. About 25 percent of Colorado drivers are insured by State Farm. State Farm was able to lower its rates primarily because of Colorado’s adoption of tort law last July. A company spokesperson said that insurance rates have been declining by about 20 percent since the adoption of the tort system. Under the old no-fault system, premiums were increasing by double-digit percentages each year. Tort insurance replaced no-fault insurance, also called personal injury protection insurance. The new tort system requires the person at fault or his or her insurance company to pay for medical expenses and the person at fault pays for property damage. Under the old system, insurance companies covered medical expenses and the person at fault covered property damages that resulted from an auto accident.