Average cost of car insurance in Colorado in 2023

How much is car insurance in Colorado?

The actual price you pay for car insurance will vary based on your location within the state, driving history and multiple other factors, but the annual average car insurance cost in Colorado is $2,121 for full coverage and $500 for minimum coverage. Compared to the national average cost of car insurance, which is $2,014 per year for full coverage and $622 for minimum coverage, Colorado is slightly more expensive for full coverage but somewhat cheaper for minimum coverage.

Colorado car insurance rates by city

If you’re wondering, ‘how much is car insurance in Colorado?,’ the answer varies depending on which city you live in. Insurance rates vary based on several factors, like driving record and vehicle, but premiums also differ between cities. The frequency of car accidents, average cost for repairs and the rates of theft and vandalism can all vary by ZIP code and affect how much you pay for car insurance. Below are five key cities from Colorado and the average car insurance rates within those locations. We’ve also tabulated how much more or less each city's average costs compared to the state average.

Average car insurance costs by age and gender in Colorado

Both age and gender are commonly calculated into auto insurance rates to help insurance underwriters determine risk levels. In general, males and younger drivers face higher average premiums since they are typically considered higher-risk drivers. Not all states allow this practice. Insurers are not allowed to use age as a rating factor  in Hawaii and Massachusetts, and gender isn’t a contributing factor in California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania. In Colorado, car insurance companies can use both age and gender when they calculate car insurance premiums, so drivers, particularly male drivers, can expect to see much higher rates on average when they are younger.

Cost considerations for young drivers in Colorado

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in Colorado?

Driving record is one of the most impactful variables for determining car insurance rates. For example, a driver with one DUI conviction in Colorado pays, on average, 66 percent more per year for full coverage auto insurance than they would have with a clean driving record. Even receiving a speeding ticket could increase a Colorado driver's average rate for full coverage by 20 percent. Insurers penalize drivers for these types of incidents because they highlight that the driver represents an increased risk for filing claims.

Consider the table below to see how each type of incident affects the average cost of full coverage in Colorado when compared to a clean driving record.

Car insurance rates in Colorado by credit score

Credit-based insurance scores are used by car insurers in many states to help determine rates. However, some states don’t allow this practice. Credit-based insurance scores are not a contributing factor for premiums in California, Massachusetts and Michigan. In those states that allow it, credit information can help insurers to assess risk levels for drivers. As we can see in the table below, having poor credit increases Colorado premiums by an average of 67 percent. On the opposite side of that spectrum, having excellent credit reduces premiums in Colorado by an average of 17 percent.

Colorado car insurance rates by vehicle type

The make and model of your vehicle is another important variable that will affect your car insurance rates in Colorado. Different types of cars can impact rates based on crash ratings, costs of repairs and risk of theft. This information helps insurers determine things like how expensive it will be to replace or repair different parts of that specific vehicle, or how well it is likely to perform in a crash. In essence, they are trying to capture information about how much it will cost them to handle potential claims on any given vehicle.

How to save on car insurance in Colorado

There are several potential ways to save on car insurance in Colorado that you might want to consider, including your vehicle choice, how often and far you drive, what types of coverage you have, who your insurer is, what your driving record and habits are like and more. Trying out some of these strategies might help you lower your Colorado car insurance rates:

• Compare providers: Every provider has its own pricing algorithm and charges a different amount than another provider might for the same coverage. For example, how your credit-based insurance score impacts your car insurance premium will vary from company to company. Collecting car insurance quotes from multiple companies for the same coverage will help you determine which company can offer you the cheapest coverage for your situation.
• Increase your deductible: Selecting a higher deductible will most likely help to lower the amount you pay each month, but you should also consider whether you can afford the higher deductible if or when you get into an accident. If you can’t, raising your deductible may not be the right move for you.
• Review your coverage: Coverage needs change over time, especially when you add a new driver or change vehicles. Review your coverage regularly to see if you can remove coverage you no longer need or adjust coverage limits to reflect new changes to your circumstances.
• Change the way you pay: Most insurance companies offer a discount if you pay in full. If you cannot afford to pay the full premium, you may get a discount for setting up automatic payments. If you do not drive much, it may benefit you to consider pay-per-mile insurance, which only charges you based on how many miles you drive.
• Practice safe driving habits: Being a safe driver may not only result in a cheaper rate, but it may open you up to qualifying for more discounts. If you regularly practice safe driving habits, you may want to consider enrolling in a telematics program, which tracks your driving and rewards safe driving behaviors with discounts. Keep in mind, however, that some insurance companies also penalize you if you practice unsafe driving habits while being tracked.

Estimate your car insurance cost in Colorado

Frequently asked questions