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Cheapest car insurance in Colorado for 2022
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Based on Bankrate’s analysis of quoted annual premiums, the average cost of full coverage car insurance in Colorado is $2,019 per year, which is slightly more expensive than the national average cost of $1,771 per year. On the other hand, the average cost of minimum coverage car insurance in Colorado is $495 per year, which is slightly lower than the national average of $545 per year. But while minimum coverage car insurance tends to come with a lower price tag on average, it isn’t the only way to find cheap car insurance in Colorado.
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 full coverage car insurance policy in Colorado costs $2,019 per year, and the average minimum coverage policy costs $495 per year in this state. Given that the average cost of full coverage car insurance in Colorado is higher than the national average, it makes sense that many drivers are looking for a more affordable premium.
To find the cheapest auto insurance companies in Colorado, Bankrate’s insurance editorial team reviewed average rate data from Quadrant Information Services and assessed trusted third-party ratings from companies like J.D. Power and AM Best. This allowed us to identify some of the carriers that offer the cheapest average rates, as well as excellent financial strength ratings and high customer satisfaction 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. 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|
|Colorado Farm Bureau||$275||$23|
The cheapest companies for full coverage in Colorado
Full coverage policies include liability insurance and collision and comprehensive coverage. Policies with full coverage offer significantly more financial protection than minimum coverage since they include coverage for damage to your own vehicle as well, 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|
|Colorado Farm Bureau||$1,413||$118|
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 teen drivers aged 16-19 are inexperienced and are three times as likely to be involved in a fatal crash as drivers aged 20 and older. 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 up to 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 low 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|
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 compiled 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|
Minimum coverage requirements for Colorado drivers
Every Colorado driver must carry at least 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 drivers in Colorado are required to carry policies with at least the state minimum coverage, many insurance experts will recommend that drivers consider purchasing higher limits of liability insurance for more financial protection.
If you lease or finance your vehicle, a full coverage policy with comprehensive and collision coverage may be required by your lender. While full coverage car insurance is generally more expensive than minimum coverage, 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
The average rate of car insurance in Colorado is higher than the national average, making it understandable why many prioritize finding an affordable rate. But even after you’ve found a cheap car insurance policy, the premium won’t stay the same forever. It’s possible for car insurance rates to fluctuate depending on external factors like crash statistics in your area, accident rates and even inflation. Any unsafe driving habits resulting in a ticket conviction or at-fault accident could also affect your car insurance premium.
Below are some tips to help you find and keep cheap car insurance in Colorado:
- Shop around: All car insurance providers have their own methods for calculating car insurance rates. This means that your quoted premiums may differ with each company, even if the other factors — such as policy coverage options and limits, vehicles and drivers — are the same. Discount opportunities can also vary by company, so it may be beneficial to request quotes, including any discounts you qualify for, from multiple companies to see which offers the cheapest rates for the coverage you need.
- Maintain a clean driving record: Individuals with clean driving records usually pay the lowest rates, as any infractions or at-fault accidents have the potential to add a surcharge to your policy. Additionally, many discounts are based on a clean driving record, such as a good driver discount, which typically requires drivers to be incident-free for a certain number of years. If you already pay a low rate, aim to avoid accidents and traffic violations, and practice safe driving habits to help keep your rate affordable.
Frequently asked questions
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 2020 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.