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.
According to Bankrate’s Average Cost of Car Insurance, the drivers in Colorado pay an average annual premium of $366 for minimum coverage and $2,004 for full coverage.
The cheapest car insurance companies in Colorado
Colorado drivers have several companies to choose from when looking for cheap car insurance. The three cheapest auto insurance carriers in Colorado are Geico, USAA 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.
USAA is one of the best car insurance companies with the highest customer satisfaction rating. USAA consistently receives above average ratings from J.D. Power. With its affordable costs at $272 per year for minimum coverage and $1,362 per year for full coverage for Colorado drivers and its extensive list of discounts, coverage options and add-ons, it is not surprising that USAA is included in our list. The only drawback is that USAA car insurance is only available for those who are related to military personnel or those who have served or are currently serving in active duty.
State Farm is the top provider of car insurance in terms of market share. Not only does the company write the most policies, but it also offers them at low prices. Additionally, State Farm 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 does not increase a customer’s premiums after a not-at-fault accident.
Auto-Owners is well known, especially in its home state of Michigan. Along with its consistent rankings as a top insurance company, Auto-Owners offers affordable rates for Colorado drivers. The car insurance company also offers all of the standard coverage options such as liability, collision and comprehensive coverages, plus a range of extra endorsements to help policyholders tailor their policies to their needs. Auto-Owners provides more discounts and savings through bundling options for drivers who own homes as well.
Nationwide is another top car insurance company in Colorado due to its excellent prices and customer satisfaction ratings. Although the car insurance company does not offer the cheapest premiums in Colorado, Nationwide offers a variety of discounts that can be applied by drivers such as multi-policy, good student, accident-free and more.
|Car Insurance Company||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
Quadrant Information Services, 2020
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.
Bankrate utilizes Quadrant Information Services to analyze 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 coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
Rates are determined based on 2020 Quadrant Information Services data.