Best car insurance in Colorado for 2023

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 2023 average quoted premiums provided by Quadrant Information Services, coverage offerings and available discounts. We also examined third-party rankings from sources such as overall customer satisfaction from the J.D. Power 2022 U.S. Auto Insurance Study 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, Progressive, American Family and Allstate. Some of them offer average rates below the Colorado average, which is $2,121 for full and $500 for minimum coverage.

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 may be 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 5 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.

How much is car insurance in Colorado? 

For auto insurance, Colorado drivers pay an average annual premium of $500 for minimum coverage and $2,121 per year for full coverage, according to 2023 rate data from Quadrant Information Services. Compared to the 2023 nationwide average annual premium of $2,014 for full coverage, Colorado’s average rates are just slightly higher. However, minimum coverage in Colorado costs about 13 percent less than the national average of $622 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 681 incidents in 2022  from about 400 in 2011.

As a result of this and other factors, 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 $1,510 per year and the average rate in Wyoming is $1,582  per year. Colorado has a relatively high number of uninsured drivers (more than 16 percent) 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.

How to find the best car insurance in Colorado

The best car insurance in Colorado may be different for each individual. Each driver requires 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 potential covered 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 your individual needs

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 may 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.