Cheap Car Insurance in Colorado 2021
Do you feel like auto insurance in Colorado is getting more expensive by the year? You are not alone. The state has a booming economy and witnessed a population growth of 15% in recent years, leading to a spike in car insurance rates. However, finding cheap car insurance in Colorado is not impossible. Remember also to check on our list of the best car insurance companies in the USA if you are planning to move from Colorado – avoid an insurance gap at any cost!
In this guide, we offer:
- Comparison tools and tables to determine Colorado car insurance rates based on location, age, and gender.
- Introduction to Colorado’s traffic laws and minimum insurance requirements.
- Tips on how to save money on Colorado auto insurance.
- List of the top auto insurance providers in Colorado.
What Are the Colorado Auto Insurance Minimums?
Drivers need to have a coverage limit of at least 25/50/15, according to Colorado auto insurance requirements. The state minimum coverage does not pay damages to your car, meaning your car insurance policy needs to cover:
Bodily Injury Liability: This helps cover injury to a driver or a pedestrian when you are at fault.
- Up to $25,000 per person
- Up to $50,000 per accident
Property Damage Liability: This helps pay for damages to other vehicles, buildings, or structures when you are at fault.
- Up to $15,000 property damage liability per accident
Uninsured Motorist (UM): Colorado does not require drivers to have uninsured motorist coverage, which can help you cover your medical expenses if the at-fault party does not have insurance.
Underinsured Motorist: This insurance covers your medical expenses if the at-fault party does not have sufficient liability insurance. Colorado car insurance requirements make this coverage optional.
State Average Costs by Age and Gender
|Age Group||Average Price for Cheapest Full Coverage|
|20-30||$1,388 to $3,165|
|30-40||$962 to $1,662|
|40-50||$662 to $1,654|
|50-60||$648 to $1,492|
Unfortunately, gender bias very much affects the average car insurance cost in Colorado. Women, on average, pay over 17.1% more for car insurance. Still, not all states allow insurance companies to set their rates based on gender.
Cost of Car Insurance by Top Cities
The average car insurance cost in Colorado is $3,120 annually.
Location is a major factor in calculating car insurance quotes in Colorado. Though these averages can help you get a general idea of what to expect, your actual premiums may differ based on several other factors.
Cheapest Car Insurance Provider in Colorado
A state minimum policy in Colorado covers only the cost of injury or damage caused to others due to your fault. Colorado’s full policy will offer comprehensive collision coverage, including damage to your car, whether on or off the road.
Cheapest full coverage auto insurance in Colorado
The average cost of a car insurance policy in Colorado is $3,120 annually. Based on this number, State Farm offers the most affordable car insurance after adding comprehensive and collision coverage with an annual cost of $957.
Cheapest car insurance for drivers with a DUI
For DUI, State Farm is the best choice since it only rises a few dollars after a DUI incident. Many insurance companies may increase your costs by 25% since DUI is a serious offense. State Farm will increase your annual cost to just $1,032.
Cheapest car insurance in Colorado for speeding or distracted driving tickets
Drivers who are guilty of speeding will get more points on their driver’s license towards suspension, meaning higher prices for a car insurance policy. State Farm offered the cheapest car insurance for reckless drivers with a monthly cost of $1,032, which is the same for their one-time DUI drivers.
Great car insurance options in Colorado for drivers with bad credit
Many auto insurance companies in Colorado check the credit scores of drivers to determine their insurance rates. If you have poor credit, you may have to pay a higher premium.
USAA offers the most affordable price at $1,230 annual premiums, followed by State Farm at $2,393 and GEICO at $2,412.
Affordable car insurance for seniors in Colorado
Some insurance companies may raise premiums for older citizens, but they offer flexible options and discounts for seniors. The most affordable car insurance in Colorado for seniors is USAA that offers $788 premiums, followed by State Farm at $1,127.
Cheapest car insurance for students
According to the Colorado Department of Transportation, incidents of car crashes are as much as four times higher among teens between 16 and 19 years of age. Hence, it makes sense why their car insurance premiums have to be higher.
Allstate offers car insurance policies with an average premium of $2,178 for students, followed by GEICO at $3,149.
Cheap insurance for young drivers in Colorado
Young drivers are more prone to drive recklessly and neglect traffic rules. Due to this, many insurance companies charge them a higher premium. State Farm offers the cheapest annual minimum coverage at $1,511 and full coverage insurance for $2,735.
Most affordable for veterans in Colorado
USAA provides the most affordable
car insurance in Colorado for veterans or members of the military. The company offers car insurance exclusively to service members at a very affordable cost. A minimum coverage policy can cost as little as $430 a year.
Colorado Auto Insurance Laws
Driving around The Centennial State without proper knowledge of the law can lead to high expenses that may not be covered by your auto insurance company.
If a Colorado driver does not have the state minimum insurance, they may be subjected to severe penalties, including:
- 4 points on the driver’s license
- $500 fine and suspension of the license until you get insurance on a first offense
- $1,000 fine and suspension of license for four months on a second offense
- At least $1,000 fine and a license suspension for eight months for subsequent offenses
- Up to 40 hours of community service in some cases.
If you want to reduce premiums for your car, you need to be aware of Colorado car insurance laws.
Requirements for new residents
You need to be considered a Colorado resident to get insurance, which you need to get a job in the state, own a business there, or live there for 90 days. You can get a Colorado driver’s license within 30 days and register your vehicle within 90 days, which would require car insurance.
Violations and punishments
Aside from penalties for not following Colorado auto insurance laws regarding minimum insurance, you can also get a penalty for driving without registration. This can get you a penalty anywhere between $15 and $100.
People with DUI offense get:
- 12 points on the driver’s license
- $300 to $100 fine
- Five days to 1 year of jail time
- 48 to 96 hours of community service
- A DUI on record for seven years
Impact of traffic tickets on insurance rates in Colorado
Your car insurance rates may go up by about 25% if you get a speeding ticket. This may increase your costs by $354 for full coverage auto insurance in Colorado.
Top Car Insurance Providers in Colorado
|Company||Company Best For||Car Insurance Market Share||AM Best Ratings||Rates|
|State Farm||Cheapest Coverage||18.3%||A++||$438|
|American Family||All Budget & Types of Drivers||8.0%||A||$2,250|
|Allstate||Access to Large Network of Agents and Repair Shops||8.8%||A+||$737|
State Farm offers the cheapest auto insurance in Colorado in several car insurance categories. It provides several flexible auto insurance options in Colorado and 13 different discounts that can help reduce premiums.
One of the company’s most popular discounts is the Drive Safe & Save program, which offers reduced premiums to drivers based on their driving record. It also doesn’t increase a driver’s premiums after a not-at-fault accident.
It provides coverage for funeral expenses, specialty vehicles, off-road vehicles, motorbikes, and snowmobiles.
American Family offers comprehensive and full coverage auto insurance in Colorado, including insurance types, coverages, multiple discounts, and customer support features. Because of this, it provides coverage for all kinds of drivers.
It also offers many convenient online features and apps.
Allstate car insurance is ideal for people looking for an extensive network of repair shops and agents and likes to use mobile options. Because of its many benefits, Allstate has premiums that are a bit on the high side compared to other providers of auto insurance in Colorado.
Allstate is widely known as a leader in automation safety and education. It offers bundle policies with its auto, life, and home insurance. It also provides coverage for your car’s audio system, which many other car insurance companies don’t provide.
The drawback is that it sells six-months plans as opposed to annual plans.
GEICO offers some of the most affordable car insurance in Colorado, along with good customer service. It has an extensive list of discounts and offers drivers 16 options to save money on their insurance plans, including those for driver safety, customer loyalty, and membership with specific organizations.
It features a convenient mobile app and comprehensive online tools.
Progressive offers auto insurance coverage for over 20 million drivers in the United States and has excellent financial stability, reputation, and customer service. It provides innovative features, including a convenient online quote tool.
The company has excellent plans for high-risk drivers, but they come more expensive than plans offered by its competitors.
Nationwide is one of the oldest and the most famous auto insurance companies in Colorado. It has a high customer satisfaction rating and reasonable prices, though not the cheapest in the state.
Nationwide is a very trusted name and offers various discounts, including multi-policy, accident-free, and a good student discount. It also features unique plans like SmartRide and SmartMiles.
Customers particularly like its online platform and mobile apps.
The United Services Automobile Association offers a wide spectrum of insurances, mortgage loans, retirement savings, investments, and banking, along with good plans and cheap car insurance in Colorado. The company has one of the highest satisfaction ratings.
The drawback is that it is only available to military members, veterans, and their families.
Pros & Cons
Why is auto insurance in Colorado so expensive?
Colorado is becoming an increasingly popular place to live, and the population has experienced a growth of 15% in the past few years. This means that there are more cars on the road, increasing crash and claim incidents. This directly affects the costs of car insurance premiums.
Besides, Colorado often has hail storms, resulting in the high cost of repairs of cars, particularly those with high-tech equipment.
Is Colorado a no-fault state?
Colorado is not a no-fault state. Under the at-fault state laws, the person who is responsible for the accident will have to make payments for all medical expenses and damages to the victim.
How to reduce car insurance costs in Colorado?
Even though Colorado may be the most expensive state for car insurance, there are plenty of ways you can get good deals. The cost of auto insurance in Colorado is based on several factors, including the driver’s age, driving history, credit rating, and the insurance company.
To get lower premiums, you can opt for car insurance companies that offer good discounts. You can also increase your deductibles to lower your monthly premiums or opt for multi-policy bundles. In addition, if you pay your full premium in advance, you can get discounted premiums.
What is the best auto insurance in Colorado?
American Family and GEICO are considered to be the best car insurance companies in Colorado, based on the data from JD Power. The high rating is due to their excellent customer service.