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Best car insurance in Colorado for 2022

Updated Aug 11, 2022
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Speeding-related traffic fatalities in Colorado increased by 14% from 2018 to 2019, the last year for which data is available from the Colorado Department of Transportation. With increased traffic hazards on Colorado roads, it may be important to reconsider your car insurance coverage. If you’re looking for the best car insurance in the Centennial State, note that it might cost more than the national average. The average cost of car insurance in Colorado is $2,019 per year for full coverage, which is $248 more than the national average of $1,771 for full coverage car insurance, based on Bankrate’s 2021 study of quoted annual premiums.

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Key Takeaways
  • The average cost of car insurance in CO is $2,019 per year for full coverage and $495 per year for minimum coverage.
  • Geico is one of the cheapest Colorado car insurance companies, with an average full coverage premium of $1,106 per year.
  • Pueblo, Colorado, is one of the most expensive cities in the state for car insurance, with an average full coverage premium of $2,323 per year.

How Bankrate chose the best car insurance companies in Colorado

To find the best auto insurance in Colorado, Bankrate looked at a variety of factors that are important to consider when choosing a car insurance provider. We started by collecting rate data from Quadrant Information Services to better understand pricing for the top companies.

We also awarded each Colorado auto insurance provider a Bankrate Score with a maximum of five points. Bankrate Scores are based on factors like financial strength, affordability, customer experience, online and mobile policy management tools, and availability. When comparing auto insurance providers, using Bankrate Scores and the average rate data may help you identify the car insurance options that are right for you.

Best car insurance companies in Colorado

To find the best insurance companies in Colorado, Bankrate’s editorial team reviewed several facets of each carrier, including 2022 average quoted premiums provided by Quadrant Information Services, coverage offerings, available discounts and third-party rankings from sources such as J.D. Power claims satisfaction and financial strength ratings from AM Best, Standard and Poor’s and Moody’s. After analyzing how each company stacks up along these scales, we calculated a Bankrate Score on a 5.0 point scale, indicating a provider’s overall competitiveness relative to other top insurers.

If you are looking for the best auto insurance in Colorado, you may want to consider a quote from the following five major auto insurance carriers, which include Geico, State Farm, American Family, Progressive and Allstate:

Car insurance company Bankrate Score Average annual full coverage premium J.D. Power customer satisfaction score (Southeast region)
Geico 4.7 $1,051 827/1,000
State Farm 4.7 $1,581 848/1,000
American Family 4.3 $2,376 833/1,000
Progressive 4.1 $2,557 800/1,000
Allstate 4.0 $2,438 824/1,000

Geico

Geico is known for offering low premiums, and the company’s average rates in Colorado are no exception. However, it may be worth noting that Geico offers fewer coverage options compared to other major carriers, meaning its policies may be better suited for Colorado drivers seeking basic coverage. Geico offers a generous list of discounts to help you save additional money on your policy, which could make up for its limited add-ons, if budget is your primary concern. Overall, Geico has solid third-party ratings, with a Bankrate Score of 4.7 out of 5. In J.D. Power’s 2022 Auto Insurance Study, Geico received a score of 827 out of 1,000, which is on par with the industry average.

Learn more: Geico Insurance review

State Farm

State Farm remains the largest auto insurer in the U.S. with 16% of the market share. The company has hundreds of exclusive local agents throughout communities across Colorado, so if you prefer to handle your insurance needs in-person, State Farm may be a good choice. State Farm has online and mobile app capabilities for digital policy management, and it scored second out of 18 companies in the 2022 J.D. Power Digital Experience Study for service. In addition, State Farm offers a full line of insurance products, including auto, home and life insurance, making it a good option for one-stop insurance shopping. The company also offers banking services as an additional perk.

Learn more: State Farm Insurance review

American Family

American Family is known for its high-quality customer service, earning the third-highest overall customer satisfaction rating in the 2022 J.D. Power Southwest Region Study. For claims satisfaction, American Family ranked above the industry average in the 2021 J.D. Power Auto Claims Satisfaction Study. In addition to positive customer experience scores, American Family’s auto insurance policies can be incredibly personalized, with options like ridesharing coverage, classic car insurance and roadside assistance available to help you tailor your coverage to your needs. The company also offers several discounts that could lower your premium. While it offers plenty of benefits, American Family’s Bankrate Score is lower than some other carriers we reviewed, with a Bankrate Score of 4.3 out of 5. However, the company is financially strong and carries an A (Excellent) rating from AM Best.

Learn more: American Family Insurance review

Progressive

Progressive’s average full coverage premium is the highest on our list, but the auto insurance company offers several perks that could make its high average premium worthwhile. If you want to have all your insurance products with one carrier, Progressive may be a good option to consider. The company offers an assortment of product lines in addition to auto insurance, including home insurance, business insurance and even segway insurance. However, Progressive did receive below-industry-average scores from J.D. Power for both customer satisfaction and claims service. This indicates previous customers may have felt the service they received from Progressive was lacking.

Learn more: Progressive Insurance review

Allstate

Allstate offers several options to personalize your auto insurance policy for greater financial protection, including accident forgiveness, new car replacement coverage and ridesharing coverage. However, Allstate’s car insurance rates are relatively expensive. The company’s average premiums are the second-highest on our list, and it received the lowest Bankrate Score amongst the five companies we rated as “best” in Colorado. However, Allstate offers several discounts that may help you save on your policy, especially if you choose to have your home insurance through Allstate, as well.

Learn more: Allstate Insurance review

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Average car insurance cost in Colorado

For auto insurance, Colorado drivers pay an average annual premium of $495 for minimum coverage and $2,019 per year for full coverage, according to 2022 rate data from Quadrant Information Services. Compared to the 2022 nationwide average annual premium of $1,771 for full coverage, Colorado’s average rates are about 13% higher. However, minimum coverage in Colorado costs about 9% less than the national average of $545 per year.

Although many factors contribute to Colorado’s higher average for full coverage rates, one may be the general increasing trend of fatal accidents in the Centennial State. Since 2011, the number of fatal collisions in Colorado has increased steadily, up to 633 incidents in 2021 from about 400 in 2011.

As a result, the average cost of car insurance in Colorado is more expensive than in some neighboring states. For example, the average full coverage premium in Utah is $1,449 per year and the average rate in Wyoming is $1,510 per year. Colorado has a relatively high number of uninsured drivers (more than 16%) and certain weather-related risks, including an increasing prevalence of wildfires, which also likely contribute to the high cost of auto insurance in the state.

Auto insurance rates are determined using more than a dozen risk-assessment factors. In Colorado, these factors include the carrier you choose, make and model of your vehicle, coverage types and deductibles, geographic location including your specific ZIP code, age, occupation, marital status, insurance-based credit score and your driving history. Since so many personal factors affect your car insurance rates, your premium will likely be different than the average Colorado car insurance rates.

How to find the best car insurance in Colorado

Each driver may require specific coverage types that may influence their decision on which car insurance company is best for their needs. When you’re deciding which provider will work best, you may want to take into account the following considerations.

Consider minimum insurance requirements in Colorado

Nearly every state requires drivers to hold at least a minimum amount of liability insurance coverage. Colorado car insurance laws mandate that each driver hold a certain amount of bodily injury and property damage coverage types. Mandatory limits are listed on the Colorado General Assembly website.

Consider lender requirements

Although you can drive legally with just the minimum amounts of coverage, most insurance experts recommend purchasing higher levels of coverage as a financial safeguard against a costly loss. If you cause an accident, your insurance will only pay up to your policy limits. If you have state minimum coverage and the damages you cause are greater than your insurance limits, you will be responsible for the overage out-of-pocket. These costs can quickly add up to thousands of dollars and could be financially devastating to you and your family.

You may also want to consider full coverage insurance, which generally includes optional comprehensive and collision coverage. These coverage types provide financial protection for damage to your own vehicle, as well as theft, vandalism and weather-related losses. If you have a loan or lease on your car, your lender will likely require you to carry full coverage. You could also purchase gap insurance to help cover the difference between what your newer car is worth and what you still owe on it after a claim payout, in the event it is totaled.

Consider driver risk impacts

Car insurance rates are personalized to each driver, depending on risk factors such as where you live, the car you drive and your motor vehicle history. Everyone brings a unique set of circumstances to their search for car insurance. Maybe you have a car loan, which means you will likely need full coverage insurance. If you have a teenage driver, you may benefit from student discounts that help combat the higher premiums insurers typically charge for young adults. Whatever your specific situation, you may want to look for companies that are suited to your needs.

Car insurance discounts in Colorado

Carriers typically offer multiple auto insurance discounts to Coloradans, but note that exact discounts and availability will vary from company to company. Common discounts that many auto insurers offer include:

  • Young driver discounts: If you have a young driver to insure, they may qualify for several different discounts. This includes good student discounts (maintain an “B” average in high school or college), student away at school discounts and driver education discounts.
  • Safe driver discounts: Proving that you’re a safe driver may save you money on your car insurance. If you exhibit safe practices through a usage-based telematics program, which monitors your driving habits, or if your vehicle has safety features like anti-lock brakes or side curtain airbags, you may qualify for a discount.
  • Other discounts: If you bundle more than one insurance policy type with the same company, such as home and auto insurance, you may qualify for a discount on both policies. If you have more than one car, you may be able to earn a multi-vehicle discount by insuring both cars with the same company.

Every company offers different types and levels of discounts and has varied eligibility requirements, so the best way to make sure you are utilizing all the discounts that you qualify for is to talk to a licensed insurance professional such as your insurance agent or your insurer’s customer service representative.

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