cheap car insurance in colorado (May 2023)

Many drivers ask how they can get cheap car insurance quotes in Colorado while still getting enough coverage. Though Colorado car insurance premiums are marginally higher than the national average, drivers in the state still have various affordable choices.

Colorado's population has risen dramatically in recent years. In the Centennial State, over 4244000 people have a driver's license. As a result, more than four million citizens in Colorado need car insurance.

You may be wondering what Colorado auto insurance laws are and where you can find the cheapest car insurance in Colorado if you're a newly licensed driver or if you've recently moved to Colorado.

Minimum Required Auto Insurance Coverage in Colorado

All states require you to buy such insurance coverage before you can register your car. According to the Colorado Insurance Department, all car owners must have at least the following:

Do I Need More Than the Minimum Required State Coverage in Colorado?

It is always a good idea to purchase auto insurance that provides more coverage than the bare minimum to protect yourself financially. Although the premiums may be higher, you will save a lot of time, energy, and money in the long term.

Cheapest Car Insurance in Colorado for Minimum Liability Coverage

The cheapest auto insurance in Colorado is determined by several factors, including the insurance company you select and the policy type you have. The lowest auto policy in Colorado is offered by American National for $245 per year for minimal coverage and $774 per year for full coverage, according to Way.com's sample rates from our analysis of quoted yearly premiums.

State Farm is likely to be your best pick if you're seeking the lowest auto insurance companies in Colorado. For basic coverage, full coverage, and various previous driving mishaps, the firm had the lowest rates identified in a Way.com review.

However, rates vary greatly depending on the car insurance companies, your region, your driving record, and other aspects. Compare quotes from various insurance to ensure you get the best deal. State Farm offers the cheapest car insurance in Colorado, with minimal liability coverage costing $418 per year and $35 per month.

Liability-only policies that meet the minimum coverage criteria are the cheapest vehicle insurance premiums. State Farm, Nationwide and Progressive have the lowest state minimum car insurance prices in Colorado on average.

American National offers the most affordable liability-only coverage. Colorado Farm Bureau - the second cheapest company is more than $53 costlier per year compared to American national. For minimum liability, the average cost of auto insurance in Colorado is $791 per year or $66 per month.

A quote from USAA is also recommended for eligible drivers. A minimal coverage policy costs $381 on average per year, less than State Farm. However, only active or retired military personnel and their families are eligible for coverage.

Average Cost of Auto Insurance Companies in Colorado

Auto insurance in Colorado costs an average of $471 for limited coverage and $2004 for maximum coverage. Colorado's premiums are much higher than the national average of $1746, which is much higher than what the average American pays for auto insurance.

With an average annual rate of $1281, State Farm is Colorado's cheapest insurance company for a full coverage policy. In Colorado, a minimal coverage policy only covers the expense of damage or injury caused by you in a car accident. Damage to your car is covered under a full coverage policy, including comprehensive and collision coverage, whether the damage occurs on or off the road.

Colorado is one of the most costly states for car insurance, with the average full coverage policy costing $2208 per year. Progressive is the next business with the largest discounts after State Farm.

Liability, collision, and comprehensive coverage are all included in full coverage packages. Comprehensive insurance protects your car from damage caused by causes other than driving, such as theft or weather damage. Collision insurance pays for damage to your car that isn't covered by another driver's liability insurance, such as hitting a pothole or a streetlight.

Cheapest car insurance quotes for Colorado drivers

If you're looking for car insurance, you can get a good deal without sacrificing coverage. In Colorado, numerous car insurance companies provide low prices for minimum and full coverage policies. We found some of Colorado's cheapest car insurance companies using average annual rate data.

According to our in-house analysis of the market, the best auto insurance in Colorado comes from one of these car insurance firms with comparing providers.

Cheapest Full Coverage Car Insurance in Colorado

Cheap Car insurance in Colorado for Adult drivers

Taking car insurance for an 18-year-old is never a cheap option. American National offers the cheapest car insurance for 18-year-old drivers, with a stand-alone basic coverage policy costing $2911 on average.

If you are looking for the best car insurance for students take a look at the table below:

Cheap car insurance for Colorado drivers with a speeding ticket

Amercan National P&C has the best rates for drivers who have recently received a speeding ticket, with full coverage rates around half of what other Colorado insurers charge. Colorado Farm Bureau is a distant second, but you may save roughly $120 each year compared to the average.

Cheap auto insurance for Colorado drivers after a car accident

American family offers the cheapest full coverage insurance for drivers who have committed accidents, at $825 per year, a 16% increase in insurance prices.

A driver with a history of accidents or traffic offenses will almost certainly pay substantially higher auto insurance premiums in Colorado. After an accident, insurance firms in the state raise rates by an average of 47%.

American family has the best rates for drivers who have recently received a speeding ticket, with full coverage rates around half of what other Colorado insurers charge. Country Financial is a distant second, but you may save roughly $114 each year compared to the average.

Cheap car insurance quotes for Colorado drivers with a DUI

Progressive would have the cheapest pricing for complete coverage if you were recently convicted of driving under the influence (DUI). It only raises rates by 15%, which is significantly less than the national average.

Because a DUI is a serious driving crime, it's normal to see a significant rate hike as a result.

If you are looking for the best car insurance after DUI citation take a look at the table below:

Cheap car insurance for married Colorado drivers

State Farm offers the best rates for full coverage in Colorado for married drivers. The company, which already has the lowest rates in the state, does not provide married drivers a discount.

Most insurance firms charge married drivers cheaper premiums because they are considered less hazardous. Insurers in Colorado reduce rates for married drivers by 4% on average.

Cheap full coverage car insurance quotes for young drivers with an accident history

After an accident, young drivers looking for the cheapest policy may be able to find it by browsing with State Farm. The company's average annual fee for minimum coverage is $1911.

Because insurers view at-fault accidents as a higher risk, they will typically boost rates more than a speeding ticket, and young Colorado drivers should anticipate rates to rise by 25% following an accident.

Compare car insurance rates in top Cities

Colorado is one of the most costly states in the US for vehicle insurance, with an average full coverage policy costing $2214 per year, or $183 per month.

Although these averages can give you a decent indication of how costs may vary, your auto insurance rates likely be different. Location is only one element that affects auto insurance prices. Larger cities, such as Denver, will have higher rates because of the higher number of accidents and car thefts.

Cheap auto insurance in Colorado with bad credit

Colorado auto insurance rate by violation

Auto insurance pricing trends in Colorado

How to find the best car insurance in Colorado

While your insurance agent sets your rates, there are many things you can do to find cheap auto insurance quotes in Colorado:

• Shop around: Rates will differ a lot from one person to the next and from one business to the next. Finally, each person can shop around for the company that provides the best deal for their specific situation.
• Increase your car insurance deductibles: The relationship between your insurance car insurance deductibles and your premiums is usually direct. The lower the premiums, the higher the car insurance deductibles, and vice versa. Higher car insurance deductibles will help you save money per month if you're willing to pay a higher cost in the event of an accident.
• Bundle the insurance policies: Customers who have two or more policies with the same organization are almost always eligible for a multi-policy discount. You will save money on your premium by combining your car insurance with your homeowners' or renters' insurance.
• Pay the whole premium upfront: Customers usually charge a monthly premium by insurance providers but plans typically last six months. When you pay your entire premium upfront, most carriers give you a discount. In most cases, if you switch companies throughout your contract, the insurer will refund the unused premium.
• Take advantage of discounts: All of the major insurance companies offer car insurance discounts. Good driver discounts, good student discounts, and discounts for car safety features are among the most popular. Some discounts are applied to your policy automatically if you qualify, while others require you to opt in.

Reasons Why Auto Insurance Costs More in Colorado

Colorado auto insurance has been on the rise every year. Customers are witnessing a 15% or more increase in their prices. So, what occurred, and, more importantly, what can you do about the growing cost of auto insurance? To know more you can read all about it here.

Things to Know About Car Insurance When Moving to Colorado

Anyone with more than 25 cars registered to their name can qualify as a self-insurer by asking for a certificate of self-insurance from the state Insurance Commissioner. The Insurance Commissioner must guarantee that the person will afford the state's minimum coverage requirements.

How to Get Discounts on Car Insurance in Colorado

There are a variety of auto insurance discounts available in Colorado, but they will vary from agency to agency. If you're changing insurance providers, see if they have a transition discount. You could be able to save money by moving.

Colorado Car Insurance Laws

Colorado is referred to as a "fault state." This means that the driver who caused a traffic accident is liable for any costs incurred due to property damage or injuries sustained during the collision. This includes lost wages, fatalities, car damage, and physical damage to the city. The at-fault driver's insurance company will pay up to the policyholder's car insurance limits, but the policyholder must pay anything over that out of pocket.

Colorado Auto Insurance Requirements

Most states require you to have certain types of coverage with minimum liability limits as a matter of law. According to several insurers, your bodily injury liability limits should be at least $100,000 per person and $300,000 per event.

You're undoubtedly thinking to yourself, "How much insurance do I need?" According to Colorado law, auto insurance policies must have the following coverage:

If you cause an accident in which someone else is injured or killed, bodily injury liability (BI) coverage protects you. Many financial experts advise carrying at least $100,000 per person and $300,000 per occurrence, referred to as the "100/300" rule.

When selecting how much to buy, think about what assets you want to cover and how much you can afford.

In Colorado, limits for physical injury are $25,000 per person and $50,000 per accident—commonly referred to as "25/50."

Property damage liability (PDL) insurance protects you if you cause damage to another person's property. It's usually someone else's car, but it might also be a building, power pole, garage door, or another piece of physical property.

The bare minimum that you must purchase is determined by state legislation.

In Colorado, there is a $15,000 limit per occurrence.

When you are hit by a driver who does not have enough auto insurance, uninsured/underinsured motorist (UM/UIM) coverage pays for your medical and other expenditures. You can add uninsured motorist coverage to compensate for damage to your automobile if an uninsured driver hits it, but most individuals opt for collision and comprehensive coverage. In Colorado, insurers must provide UM/UIM coverage equal to the bodily injury liability limits you choose.

Only if it is refused in writing may UM/UIM be waived. You can choose liability limits ranging from $25,000/$50,000 (the same as Colorado's minimum liability limits) to the same amount of liability coverage as your policy.

Most people opt for it since it can cover both economic and non-economic damages if the person who hits you is uninsured or underinsured. Because the Colorado State Legislature established a law requiring the extension of UM/UIM on January 1, 2008, it's a good idea to check your options on this coverage.

Some people won't notice a difference in their premiums or coverage. Still, it varies by individual and company, so inquire how it affects your policy and decide the greatest protection for you.

Coverage for medical expenses (Med Pay, or MPC) Colorado insurers are required to provide you with $5,000 in coverage as of January 1, 2009. If you don't opt-out, the coverage and premium will be automatically added to your policy, whether you're buying a new one or renewing an existing one. You have the option of not purchasing med pay or purchasing a different amount. If you don't want it, you must reject it in writing or the same manner as buying insurance, such as over the Internet or the phone.

Your insurer must also hold $5,000 of your medical payments coverage for 30 days to pay for trauma claims first, according to the new law.

Collision coverage protects your car from damage caused by colliding with another car, a brick wall, a fire hydrant, or another object.

This coverage is not needed by law, but your bank may require it if you have an auto loan. This policy comes with car insurance deductibles, which is the amount you must pay out of pocket for a claim before the insurance kicks in.

Comprehensive coverage protects you if your car is stolen or damaged in ways other than an accident. Hail, fire, theft, flood, earthquake, explosion, falling objects, and encounters with wildlife, such as deer, are all covered risks.

Comprehensive coverage is optional, but if you have an auto loan, your bank may require it. On this package, you have the option of selecting car insurance deductibles.

If you can afford it, getting extra insurance than the bare minimum is recommended.

Consider how much insurance you'll need when you need it the most.

Families should meet with their insurance agent or company representative to determine the appropriate amount for each family member.

Colorado car insurance PIP requirements

PIP coverage is a mainstay, and part of the minimum needed coverage for automobile owners in no-fault states. However, in a state like Colorado, this type of coverage is significantly more limited. To illustrate the point, it's helpful to know Colorado's minimum mandated coverage, which includes:

Insurance for bodily injury liability for $25,000 per person/$50,000 per accident Liability insurance for property damage for $15,000

Carriers must also provide at least $5,000 in medical payment (Med Pay) coverage, which works similarly to PIP in that it compensates for certain types of expenses regardless of responsibility.

While car insurance companies are required to offer at least $5,000 in Med Pay coverage, which can be denied in writing by prospective buyers, some Colorado drivers choose to acquire this coverage at even greater limits as protection if they are found to be at fault in a crash.

Proof of Auto Insurance in Colorado

All drivers in Colorado are required by law to have auto insurance. Anyone who drives or parks a car on Colorado's public roads must provide evidence of insurance. Driving without adequate auto insurance exposes you to financial liability in the event of a traffic accident.

Related Content