Colorado drivers pay an average of $518 per year for minimum coverage and $2,016 per year for full coverage, according to Bankrate’s 2021 study of average annual premiums. If you are looking for the cheapest car insurance in Colorado, getting quotes from Geico, USAA, State Farm, Auto-Owners and Farmers might help you find coverage at a lower price.
According to preliminary data released by the Colorado Department of Transportation, 567 fatal car accidents occurred in 2020, resulting in 615 deaths. Car insurance is more than a legal requirement in Colorado: it is an important part of your overall financial plan that can shield you from the fallout of an accident. For many drivers, finding cheap car insurance is an important factor. Bankrate’s research may help you find the coverage you need at a price you can afford.
The cheapest car insurance companies in Colorado
To determine the cheapest auto insurance in Colorado, Bankrate’s insurance editorial team first obtained up-to-date premium data for the largest insurance companies in the Centennial State, by market share, from Quadrant Information Services. There are numerous companies in Colorado with average rates lower than the state average.
If you are in the market for the cheapest car insurance in Colorado, you might want to start by getting quotes from these companies:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
Geico’s low average rates are complemented by the company’s extensive list of discounts. You might save money by being a good student, a military member, a federal employee or a good driver. However, Geico’s policies do not offer much room for personalization and come with only a few optional coverages. However, if you like to handle your insurance digitally, Geico could be a good fit. The company ranked first in the service category in the 2021 J.D. Power U.S. Insurance Digital Experience Study.
Learn more:: Geico Insurance review
If you are a current member of the military, a veteran or an immediate family member, USAA’s military-focused policies could be a good fit. Although USAA is not eligible for official ranking with J.D. Power due to these eligibility restrictions, the company did receive the highest number of points in the 2021 U.S. Auto Insurance Study for the Southwest region, which includes Colorado. This indicates that customers are generally pleased with USAA’s service. The company offers several discounts which could help you save money on your coverage, including savings for garaging your vehicle on a military base and storing your vehicle if you are deployed.
Learn more:: USAA Insurance review
State Farm sells its coverage through a network of agents nationwide, making it an appealing option for those who like to handle their business with local professionals. The company has a long track record and has grown to be the largest insurer or private passenger autos in the U.S. The company also received a high J.D. Power score for its overall service. And if you have a teen driver, State Farm’s Steer Clear program, combined with its good student discount, might help you save on your premium.
Learn more:: State Farm Insurance review
If you want a company that has cheap average rates and provides numerous options for customization, Auto-Owners might be a good choice. Both minimum and full coverage with Auto-Owners are cheaper, on average, than Colorado’s average premium. To personalize your policy, you could consider adding new car replacement, diminished value coverage, loan or lease gap coverage or rental car coverage. Auto-Owners also offers a host of discounts that might help you save even more.
Learn more:: Auto-Owners Insurance review
Although its J.D. Power score is below the region’s average score, Farmers received a lower-than-average complaint index score from the National Association of Insurance Commissioners (NAIC) for its auto insurance product. A score of 1.00 represents an average number of complaints; Farmers received a score of 0.79 for its auto insurance, indicating that the NAIC received fewer-than-average complaints from consumers. Farmers also offers an extensive list of optional coverages to help you create a policy that fits your needs.
Learn more:: Farmers Insurance review
Minimum coverage requirements for Colorado drivers
- $25,000 for bodily injury liability or death to any one person in an accident
- $50,000 for bodily injury liability or death to all persons in any one accident
- $15,000 for property damage liability in any one accident
Purchasing only the minimum coverage will often result in a low premium, but there are other risks to consider.
Colorado’s minimum coverage requirements only include liability. By purchasing the minimum amounts of insurance, your insurer will only cover the other driver’s losses in an at-fault accident. Without collision or comprehensive coverage, which make up “full coverage,” your policy excludes any damage to your vehicle, which could leave you financially strapped.
Additionally, minimum coverage does not include any medical payments coverage for you or your passengers. In addition to adding medical payments, most insurance professionals recommend that you purchase higher liability limits to obtain greater financial protection.
How to get cheap car insurance in Colorado
While your insurance provider sets your premiums, there are ways you can lower your premium. To find the cheapest car insurance in Colorado, you might want to:
- Shop around: Rates can vary significantly from one company to the next. Getting quotes for the same coverage from multiple companies might help you find the most competitive price for the coverage you need.
- Bundle your policies: Most companies that sell multiple insurance products offer a multi-policy discount for customers with two or more policies. This discount is especially common when you buy your auto and home, condo or renters insurance with the same company. Buying both policies from the same company could result in significant savings.
- Take advantage of discounts: Along with bundling discounts, most companies offer at least a few discounts to help you save. Some common discounts include savings for being a safe driver, enrolling in a telematics program and having a vehicle with safety features like anti-lock brakes and side curtain air bags.
- Increase your deductibles: If you have full coverage, your policy has two deductibles — one each for collision and comprehensive. Increasing one or both of your deductibles will typically lower your premium. Just make sure you can afford the higher deductible so that you are not financially stressed if you file a claim for vehicle damage.
- Consider how you pay: If you pay in full, consider signing up for automatic payments or opting for paperless billing, as you might save money. And, if you switch insurance providers during your policy, most insurers will refund the unused premium.
Frequently asked questions
What is the best car insurance in Colorado?
There is no best car insurance company in Colorado for every driver. Because everyone has a unique situation and each company has its own rating algorithm, the best company will vary from person to person. Understanding what you are looking for from your insurance company and getting quotes from several providers could help you find the best coverage for you.
What is the average cost of car insurance in the U.S.?
The average auto insurance premium in the U.S. is $565 annually for minimum coverage and $1,674 annually for full coverage. Colorado drivers pay less than the national average for minimum coverage, with an average annual premium of $518, but more for full coverage, with an average annual premium of $2,016. The higher-than-average full coverage premium in Colorado could be due to the legalization of marijuana. Research has shown that car accidents increase in states where the drug is legalized.
What determines someone’s car insurance premiums?
There are numerous factors that go into how much you pay for car insurance. These include the type of vehicle you drive, the coverage you choose and your driving history. Insurance companies price policies based on risk. Factors that might indicate you are a risky driver, like a history of accidents, tickets or DUI convictions, will generally increase your premium.
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. To do so, you will need to have all the proper information to purchase a policy. For example, you may be able to get a quote with just your car’s year, make and model, but you will need the vehicle identification number (VIN) to purchase a policy.
Additionally, it might be worth purchasing a new policy a few days to a week ahead if you already have insurance in place. Some companies offer a discount for drivers who sign up for their policy a certain number of days before it goes into effect.
Bankrate utilizes Quadrant Information Services to analyze 2021 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 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.