Cheapest car insurance in Colorado for 2022

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The cheapest car insurance in Colorado depends on a variety of factors, including the insurance company you choose and the type of policy you have. Based on Bankrate’s sample rates from our 2021 study of quoted annual premiums, the cheapest auto policy in Colorado is offered by American National at $207 per year for minimum coverage and $767 per year for full coverage.

If you are in the market for auto insurance, you can find affordable rates without sacrificing coverage. There are many car insurance companies in Colorado that offer cheap rates for minimum and full coverage policies. We identified some of the cheapest car insurance providers in Colorado using average annual rate data.

The cheapest car insurance companies in Colorado

Colorado drivers have a variety of options when it comes to car insurance. However, average car insurance rates tend to be expensive in The Centennial State. The average minimum coverage premium costs $2,016 per year for full coverage and $518 per year for minimum coverage in Colorado. It makes sense that many drivers are looking for a more affordable premium.

To find the cheapest auto insurance in Colorado, Bankrate’s insurance editorial team utilized the most current average company rates from Quadrant Information Services and assessed trusted third-party sources to identify the cheapest carriers with excellent financial strength ratings and high customer satisfaction ratings scores. Based on our evaluation, we identified several providers that stand out for offering cheap car insurance in Colorado.

The cheapest companies for minimum coverage in Colorado

Minimum coverage car insurance is a requirement for every driver in Colorado. Minimum coverage policies tend to be the cheapest, but they offer the least amount of coverage and may not offer you the level of financial protection you need, according to the Insurance Information Institution (Triple-I). If you are interested in purchasing a minimum coverage policy, here are the five cheapest car insurance companies in Colorado based on Bankrate’s research:

Car insurance company Average annual minimum coverage premium Average monthly minimum coverage premium
American National $207 $17
Geico $283 $24
Grange $299 $25
USAA $303 $25
State Farm $435 $36

The cheapest companies for full coverage in Colorado

Full coverage policies include liability insurance and collision and comprehensive coverage, as well as uninsured/underinsured motorist coverage. This policy offers significantly more financial protection than minimum coverage, though the added financial protection will come at a higher cost. We identified five cheap car insurance companies that offer affordable full coverage premiums in Colorado:

Car insurance company Average annual full coverage premium Average monthly full coverage premium
American National $767 $64
Geico $1,106 $92
USAA $1,310 $109
State Farm $1,696 $141
Allstate $1,711 $143

Events that can impact your cheap rates in Colorado

There are a variety of factors that can impact your auto insurance premium. Additionally, certain situations can cause your rate to increase. Here are some of the most common events that may lead to a higher premium:

  • Adding a teen driver to your policy: If you add a teen driver to your car insurance policy, your rate will almost certainly increase. This is because young drivers are inexperienced and are more likely to cause accidents. To offset the higher rate, many car insurance companies offer discounts for young drivers, like savings for earning good grades in high school and college. Also, keep in mind that your rate will generally gradually decrease as the teen gets older and gains more experience behind the wheel.
  • Getting a speeding ticket: Your motor vehicle record has a big impact on your car insurance rate. If you receive a traffic violation, like a speeding ticket, you will probably see a rate increase when your policy renews. In most cases, a speeding ticket will negatively affect your car insurance premium for three years, according to the Triple-I.
  • Getting into an accident: Unless you have accident forgiveness included in your coverage, expect an at-fault accident to impact the cost of your car insurance. Generally speaking, your auto insurance rate will be affected for five years after an accident. The rate increase can also be based on the severity of the accident and the extent of loss costs incurred.
  • High-risk driver status: High-risk drivers usually pay the highest car insurance rates because they are risky to insure and are more likely to have claims. This includes drivers who have been convicted of a DUI, caused multiple accidents, have a bad credit-based insurance score (in states that permit credit as a rating factor) or have been caught driving without auto insurance. Shopping for cheap car insurance as a high-risk driver may be more difficult because it is possible that some insurance companies will not insure you due to eligibility requirements.

Cheapest cities in Colorado for minimum coverage

One of the biggest factors that will impact your car insurance rate in Colorado is where you live, and more specifically, your ZIP code. Even if you move within Colorado, consider shopping around for insurance because you may find that a different company can give you a cheaper rate in your new area.

The table below highlights the cheapest cities for car insurance in Colorado for minimum coverage. You can compare these averages against the average car insurance rates in Colorado to get an idea of what you might pay in larger Colorado cities and metro areas.

City Average annual minimum coverage premium Average monthly minimum coverage premium
Delta $400 $33
Nucla $400 $33
Redvale $402 $34
Montrose $403 $34

Cheapest cities in Colorado for full coverage

Full coverage premiums differ between cities due to the cost of living, cost of car repairs, theft rate and accident rate, among other local factors. Bankrate produced a list of the cheapest cities in Colorado for full coverage car insurance in the table below:

City Average annual full coverage premium Average monthly full coverage premium
Redlands $1,608 $134
Fruitvale $1,618 $135
Fruita $1,626 $136
Clifton $1,641 $137

Minimum coverage requirements for Colorado drivers

Every Colorado driver must carry a minimum amount of car insurance. The minimum required coverage in Colorado includes:

  • $25,000 in bodily injury liability coverage per person
  • $50,000 in bodily injury liability coverage per accident
  • $15,000 in property damage liability coverage per accident

Although at least minimum coverage is required, insurance experts recommend that most drivers purchase a full coverage policy for more financial protection. If you lease or finance your vehicle, a full coverage policy may be required. While full coverage is generally more expensive, you can shop around and compare full coverage quotes to help you find the lowest premium.

Here is how to find (and keep) cheap car insurance in Colorado

Besides choosing a cheap car insurance company, there are several other ways that you can find and keep an affordable car insurance premium in Colorado. Here are a few suggestions:

  • Shop around: Every car insurance provider will offer a slightly different rate. Before you purchase a policy, the Triple-I recommends you should shop around and get quotes from a minimum of three carriers to ensure you are paying the lowest rate for the type and amount of coverage you want.
  • Choose your coverage wisely: The more coverage you purchase, the higher your premium will be. When you buy insurance, closely consider the add-ons you purchase and the coverage limits you set. You may find that you need less coverage than you think, which will help keep your rate lower.
  • Increase your deductibles: If you have full coverage that includes collision and comprehensive, choosing higher deductibles will reduce your premium. However, make sure you are financially prepared to pay more out of pocket in the event of a claim.
  • Look for discounts: Most insurance providers offer discounts to help drivers save money on their policies. Look for insurance carriers that offer multiple discounts you can qualify for and try to take advantage of every saving opportunity available for the most affordable rates.
  • Maintain a clean motor vehicle record: Individuals with clean driving records usually pay the lowest rates. If you are already paying a low rate, avoid accidents and traffic violations, and practice safe driving habits to keep your rate affordable.

Frequently asked questions

What is the best car insurance company in Colorado?

The best car insurance company in Colorado varies. It depends on your unique coverage needs, budget, location and what you value in an auto insurance company. To find the best provider, make sure to shop around and compare carriers using your personal criteria.

How can I lower my car insurance rates in Colorado?

There are a number of ways to lower your car insurance premium in Colorado. First, make sure you are paying the lowest rate by comparing quotes from several insurers. You could also take advantage of discounts, improve your credit history, raise your deductible, pay your annual premium in full or bundle your policies (such as auto and home), depending on what saving opportunities your insurance company offers.

Does car insurance get cheaper as I get older?

As a general rule, car insurance rates decrease as you get older. This is because older drivers have more experience than newly licensed drivers. However, keep in mind that your rate will always be dependent on factors other than age or driving experience alone, like your location, insurance score, make and model of your vehicle, and your claims history.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Written by
Elizabeth Rivelli
Insurance Contributor
Elizabeth has two years of experience writing for insurance domains such as Bankrate.com, The Simple Dollar, Coverage.com and NextAdvisor, among others. In addition to auto insurance, Elizabeth regularly writes about home insurance, renters insurance and life insurance. She also covers industry trends and general insurance education.
Edited by
Senior Insurance Editor
Reviewed by
Director of corporate communications, Insurance Information Institute