Best car insurance in Colorado in 2022
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 $2,016 per year for full coverage, $342 more than the national average, based on Bankrate’s 2021 study of quoted annual premiums.
Geico and State Farm are among the best auto insurance companies in Colorado, with Bankrate Scores of 4.7 out of 5. Progressive, American Family and Allstate were also chosen for our list of best providers through an objective analysis of coverage offerings, third-party ratings and average premiums. Before choosing a provider, you may want to research each of these companies thoroughly to see which might work best for your individual needs and preferences.
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 2021 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 companies, which include Geico, State Farm, Progressive, American Family and Allstate:
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score (Southwest region)|
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. While the company scored slightly lower than the Southwest industry average in the 2021 J.D. Power Customer Satisfaction Study, it did earn a high Bankrate Score of 4.7 out of 5.
Learn more: Geico Insurance review
State Farm remains the largest auto insurer in the U.S. with 16.2% 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, but it scores just below industry average in the 2021 J.D. Power Digital Experience Study for service. However, 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
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
American Family is known for its high-quality customer service, earning the highest overall customer satisfaction rating in the 2021 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 not amongst the highest of the “best car insurance” companies on our Colorado list. However, the company is financially strong and carries an A (Excellent) rating from AM Best.
Learn more: American Family Insurance review
Allstate offers several options to personalize your auto insurance policy for greater financial protection, including accident forgiveness, sound system equipment coverage and ridesharing coverage. The company’s premiums are the second-highest on our list on average, and it received the lowest Bankrate Score amongst the five companies we rated as “best” in Colorado. However, the company 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
Average car insurance cost in Colorado
For auto insurance, Colorado drivers pay an average annual premium of $518 for minimum coverage and $2,016 per year for full coverage, according to 2021 rate data from Quadrant Information Services. Compared to the 2021 nationwide average annual premium of $1,674 for full coverage, Colorado’s average rates are 20% higher. However, minimum coverage in Colorado is about 8% less than the national average of $565 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.
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.
Frequently asked questions
What is the cheapest car insurance company in Colorado?
According to Bankrate’s research, the cheapest car insurance companies in Colorado include American National, Geico and Grange. While these companies offer the cheapest average premiums in Colorado, the cheapest company for you may be different based on your unique characteristics. Some companies may place more weight on your driving history when calculating your premium, while others might care more about your claims history. One company might offer a greater number of discounts that apply to you. For these reasons, you may want to request quotes from several different car insurance providers to find the cheapest option for you.
What do I need to get car insurance in Colorado?
Although every company is different, you will need to provide some basic information to get an auto insurance quote. Auto insurers will typically ask for the name, date of birth, VIN and driver’s license number for all the drivers in your household. If you have an active auto insurance policy, it might be helpful to have your declarations page handy while you are requesting quotes, as most of the necessary information that insurers will need to generate a quote is summarized on this page (typically found at the front of your insurance policy).
How quickly can I get car insurance in Colorado?
If you have all of your documentation together and no major negative marks on your driving record, you may be able to get auto coverage the same day you request a quote. However, allowing yourself time to shop your coverage with several companies is best for finding the right fit. The Insurance Information Institute (Triple-I) recommends getting a minimum of three quotes from a mix of national and regional insurers to compare coverage options and costs.
What is the difference between minimum coverage and full coverage?
Minimum coverage refers to the least amount of coverage required by each state. Full coverage typically means that you also have coverage for damage to your vehicle in the form of comprehensive coverage and collision coverage. If you are not sure how much coverage you need, talking to an insurance professional might be helpful. It is important to note that most insurance professionals recommend you purchase enough coverage to provide adequate financial protection for you and your family.
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 coverage that meets 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.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.