Many drivers wonder how they can get the cheapest car insurance without sacrificing decent coverage. While car insurance rates in Colorado are slightly above the national average, drivers in the state still have plenty of options for affordable coverage.
The cheapest car insurance companies in Colorado
Colorado drivers pay an average of $1,050 per year for auto insurance. The three cheapest auto insurance carriers in Colorado are Geico, Progressive and State Farm.
Geico has a reputation for offering some of the lowest rates in the auto insurance industry while still providing decent customer service — the company tied for tenth place in claims satisfaction in a 2020 J.D. Power study.
Not only does Geico have some of the lowest rates on the market, but it also has one of the most extensive lists of discounts available. The company offers its customers 16 ways to save on their insurance premiums. Discounts include those for vehicle safety equipment, driver safety, driver education, customer loyalty and membership with certain organizations or employers.
Progressive is one of the largest auto insurance carriers in Colorado, writing more than 10% of premiums in the state. Progressive is known for offering low-cost insurance policies. More specifically, the company has a reputation for offering affordable policies to high-risk drivers, such as those with poor driving histories or bad credit.
In addition to its low premiums, Progressive also offers a generous list of discounts. With 13 discounts available, most customers can likely find one that applies to them. Progressive has other tools that make it stand out from the crowd. The company’s price comparison tool allows prospective customers to pull quotes from multiple companies at once, not just from Progressive. The company also offers its famous Name Your Price Tool, which customizes a policy for drivers based on the premium they want to pay.
State Farm is the top provider of car insurance in Colorado in terms of market share. Not only does the company write the most policies, but it also offers them at low prices. State Farm also offers 13 discounts customers can use to reduce their premiums even more. One of the company’s featured discounts is its Drive Safe & Save program, which reduces a driver’s premium based on their driving record.
Another advantage is that, according to a study by the Consumer Federation of America, State Farm is the only major insurance provider that doesn’t increase a customer’s premiums after a not-at-fault accident.
Affordable coverage for Colorado drivers
Colorado state law requires that drivers carry liability insurance, including bodily injury and property damage coverage. The state requires the following minimum coverages:
- $25,000 for bodily injury or death to any one person in an accident
- $50,000 for bodily injury or death to all persons in any one accident
- $15,000 for property damage in any one accident
These minimum coverages will compensate any other drivers in an accident where the insured is at fault. Purchasing only the minimum coverage will result in the lowest premium rates.
While sticking to the minimum coverages will save you the most money on your monthly premiums, drivers may opt to purchase more coverage to avoid bigger financial losses in case of an accident. Colorado’s minimum coverage requirements only include liability. In the event of an accident, your insurer will only cover the other driver’s losses. Your policy won’t cover any damage to your vehicle or person.
How to get cheap car insurance in Colorado
While it’s your insurance provider that sets your premiums, there are plenty of things you can do to find the cheapest car insurance available to you:
- Shop around: Rates can vary significantly by individual and from one company to the next. Ultimately, each person should shop around for the company that offers the lowest rate for their unique situation.
- Increase your deductibles: There’s typically a direct relationship between your insurance deductibles and your premiums. The higher the deductibles, the lower the premiums, and vice versa. If you’re comfortable with paying a higher cost in an accident, opting for higher deductibles can reduce your monthly expense.
- Bundle your policies: Nearly every insurance company offers a multi-policy discount for customers with two or more policies with the same company. By bundling your auto insurance with your homeowners or renters insurance, you can save money on your premium.
- Pay your full premium up-front: Insurance companies default to charging customers a monthly rate, but policies typically cover a period of six months. Most carriers offer a discount when you pay your full premium up-front. If you switch providers during your policy, insurers will usually refund the unused premium.
- Take advantage of discounts: All of the largest insurance carriers offer discounts for their auto policies. Some of the most commonly available include good driver discounts, good student discounts, and discounts for vehicle safety features. Some discounts apply automatically to your policy if you qualify, while others you have to opt-in to.
Frequently asked questions
What determines someone’s car insurance premiums?
Many factors can impact the car insurance rates you’re eligible for. Factors that can increase or decrease your policy include:
- Driving record: Those with accidents or violations on their driving record can expect to pay more for car insurance than if they had a clean driving record.
- Age: Insurance rates tend to drop after someone turns 25, as older drivers tend to have fewer accidents.
- Gender: Women tend to be safer drivers and have cleaner driving records. As a result, they may pay lower premiums.
- Credit: Studies have linked credit to driving history — those with poor credit are more likely to file claims. As a result, poor credit tends to result in higher premiums.
- Vehicle: Carriers may offer lower rates to those with safer cars and those that are more affordable to repair.
- Coverage amount: You can expect your rates to increase in correlation with the amount of coverage you purchase.
- Location: Living in an area with a high crime rate can increase your premiums.
How do Colorado’s car insurance premiums compare with the rest of the country?
According to 2017 data, Colorado ranks 15th in the nation for the most expensive car insurance. Insurance prices have been steadily increasing in the state for several years. Suspected causes of the spike include increased hailstorms and the legalization of recreational marijuana.
How quickly can I get car insurance in Colorado?
With most of the major insurance carriers, you can purchase an auto policy that is effective immediately, as long as you have the right documentation. It might be worth waiting, though — some companies offer a discount for drivers who sign up for their policy a certain number of days before it goes into effect.
What is the best car insurance in Colorado?
According to data from J.D. Power, American Family and Geico are the top-ranking car insurance companies in Colorado when it comes to customer satisfaction. Colorado drivers also have plenty of other excellent car insurance companies to choose from, depending on what factors are most important to them in a carrier.