Cheapest Car Insurance in Colorado
Searching for the cheapest car insurance in Colorado can seem overwhelming, but a little preparation can help keep your premiums within budget.
Start by choosing several companies so you can compare their prices and policy offerings.
You should compare no less than three different agencies and consider their reviews and ratings so you know how well each one performs.
Cheapest Car Insurance In Colorado
Here are the 4 best providers offering the cheapest car insurance in Colorado:
Progressive Car Insurance opened for business in 1937 and became a recognized leader in the insurance industry, accredited with A ratings from several third-party institutions.
The company is known for its innovative “Name Your Price” tool and offers affordable coverage options to meet every need.
Learn More: Progressive Car Insurance Review
Liberty Mutual Car Insurance sets itself apart from the competition with its 12-month rate guarantee.
The company dates to 1912 and now offers insurance worldwide.
Liberty Mutual’s premiums are on the higher end of the scale, but the company receives recognition for fast claim processing and an impressive discount selection.
Learn More: Liberty Mutual Car Insurance Review
Esurance opened its doors in 1999 and quickly grew before Allstate purchased it in 2011. The subsidiary is known for being one of the first to sell insurance online.
To this day, customers know Esurance as the insurance company for tech-savvy drivers, offering an app-based monitoring system called DriveSense to save customers money for good driving habits.
Learn More: Esurance Auto Insurance Review
Travelers is the oldest insurance company in the country. It originated in 1853 in Saint Paul Minnesota and has since expanded its operations to several countries throughout the world.
It offers various insurance options including home, auto, and life insurance. You can save by bundling your insurance packages.
Learn More: Travelers Auto Insurance Review
Rather than offering insurance itself, QuoteWizard has established a network of insurance providers and connects drivers to the company that best meets their needs at an affordable rate.
QuoteWizard is relatively new to the industry, having started operations in 2006. Despite its short history, the company has established itself as the largest privately held insurance company in the country and holds an A+ rating from the Better Business Bureau (BBB).
How Much is Car Insurance in Colorado?
The average cost of car insurance in Colorado is $936, which is slightly higher than the national average.
Much like they have for the rest of the country, rates in the state have gone up since 2011, although the rate of increase is higher than that of most states.
|Average Cost of Car Insurance in Colorado||$936.00|
|National Average Cost of Car Insurance||$889.01|
What Affects the Cost of Car Insurance in Colorado?
The varying car insurance averages between states are due to area-specific factors that insurance companies consider when determining their base rates.
The National Association of Insurance Commissioners calculates traffic conditions by measuring traffic density and fatal accident rates. Traffic density compares the number of vehicle miles to state roadway miles and number of registered vehicles.
In Colorado, the number of vehicle miles per roadway mile is 552,007 which is lower than the national average of 724,348. Miles per registered vehicle is also lower in Colorado, at 10,574 miles compared to the national average of 12,010.
The NAIC measures rates of fatal accidents per 100 million miles traveled and per 1,000 registered vehicles. Colorado has a rate of 1 fatal accident per 100 million miles and 0.11 per 1,000 registered vehicles. These numbers are also below the national averages of 1.08 per 100 million miles and 0.13 per 1,000 registered vehicles.
Insurance companies may be more comfortable with lower premiums in an area with lower fatal accidents and fewer cars on the highway.
The comparison of traffic density and fatal accident rates in Colorado to national averages is on par with the difference in insurance rate averages between the state and the US.
Vehicle Theft Rates
Insurance companies also pay close attention to vehicle theft rates to anticipate the number of payouts needed in an area. The FBI’s Crime in the US report shows Colorado has a rate of 354 annual vehicle thefts per 100,000 residents on average.
This number is higher than most of the country, and Colorado’s vehicle theft rate is listed as the ninth highest in the United States. The high rate of theft may explain why Colorado insurance premium averages are higher than in surrounding states.
The type of vehicle you drive can also impact your chances of being a victim of vehicle theft, potentially increasing your rates.
The National Insurance Crime Bureau maintains a list of the most commonly stolen vehicles in each state. In Colorado, those vehicles are:
- 2006 Ford Pickup
- 1998 Honda Civic
- 1997 Honda Accord
- 2005 Chevrolet Pickup
- 2000 Jeep Cherokee/Grand Cherokee
- 2001 Dodge Pickup
- 2018 GMC Pickup
- 1999 Subaru Legacy
- 1999 Toyota Camry
- 2002 Subaru Impreza
Population Density in Colorado
Although insurance companies don’t often use population density to affect premiums directly, the statistics are relevant to estimate future claims. A higher density in an area suggests more potential accidents or theft.
The NAIC measures density by the number of people per square mile on average and Colorado has a density of 52.
This number is significantly lower than the countrywide density of 90 people per square mile and is likely a contributing factor to the lower-than-average premiums in the state.
Keep in mind that large metropolitan areas like Denver have more people on the roadways than smaller towns such as Vale, and a correspondingly higher accident rate.
Therefore, insurance premiums may be higher in more populous cities.
The NAIC lists disposable personal income in dollars per capita. Colorado’s disposable income averages $43,609, higher than the national average of $40,859.
Higher disposable income can suggest pricier vehicle purchases, which in turn can contribute to higher premiums.
What is Mandatory for Car Insurance?
According to state law, Colorado drivers must maintain a minimum of:
- Bodily injury liability at $25,000 per person and $50,000 per accident
- Property damage liability at $15,000 per occurrence
Insurance companies that issue policies in Colorado also need to offer uninsured/underinsured motorist coverage in the same amounts as selected bodily injury limits.
Drivers can decline this coverage if they wish, but they must do so in writing. Companies must also offer $5,000 in medical payments coverage. This option is automatically part of all Colorado policies unless the policyholder opts out.
The state needs proof of minimum coverage through a Colorado insurance company to register any vehicle. You can provide this proof in the following forms:
- An insurance card
- A copy of your policy
- A letter from your insurance company on official letterhead
- A computer printout, fax, or digital image of your policy
- An email sent from the insurance company
The state also requires drivers to carry proof of insurance while operating their vehicles. Failure to do so can result in fines and the suspension of your driver’s license. The above options qualify for this purpose.
How to Reduce the Cost of Your Car Insurance in Colorado
Maximizing reductions can help you feel confident you’ve obtained the cheapest car insurance in Colorado.
Comparing the rates of several companies is a great start, but there are other actions you can take to reduce your premiums further, such as:
- Reducing full coverage insurance to liability if you have paid for your vehicle in full
- Bundling your car insurance with other types of insurance
- Taking advantage of any discounts offered, like low mileage or safe driving discounts
- Completing safety classes
- Installing safety features or anti-theft devices on your vehicle
- Choosing a higher deductible
Once you’ve identified all the possible discounts you can take, it’s time to contact your list of insurance companies. You should gather all the information agents need in advance to keep your calls efficient.
Make sure you have information on:
- Make, model, and year of every vehicle to be insured
- Vehicle Identification Numbers
- Any safety features or anti-theft devices on your vehicles
- An estimation of the number of miles your vehicles travel each year
- Your address
- Details about access to parking
- The amount of coverage you need
- The deductible amount you’re comfortable paying in the event of a claim
- The number of drivers to be covered on your policy
- Driving record details, including any accidents or tickets within the last 3-5 years
- Proof of driver’s education completion for teen drivers
- Grades for driver’s still in school
What Can Increase the Cost of Your Car Insurance?
Preparation is the key to finding the cheapest car insurance in Colorado. Several things can drive up your premiums, so see if the any of the following apply to your situation:
- Poor driving history: Traffic tickets and at-fault accidents suggest drivers are a greater liability and result in higher premiums.
- Poor credit: Many insurance companies perform credit checks on potential customers. A low credit score can mean higher insurance costs.
- Expensive vehicles: Vehicles that cost more on the lot also cost more to replace. Insurance companies often raise rates if they know claims may be higher.
- Sports vehicles: Vehicles designed to be fast are often magnets for reckless driving habits. Insurance companies may anticipate this with increased premiums.
- Age: If you’re a younger driver, insurance companies may penalize you for your inexperience. Most drivers see their insurance rates drop when they reach the age of 25.
- Gender: Some insurance companies offer higher rates to young men than women of the same age. This circumstance is often a reaction to accident statistics, and it balances out as drivers get older.
Shopping For Car Insurance In Colorado
The expense of car insurance is inevitable for all drivers, but it doesn’t have to be so hard on your wallet.
Understanding the average cost of insurance in your state, recognizing the factors that impact premiums and understanding your coverage needs all contribute toward keeping your costs low.
Take the time to do your research and arm yourself with quotes from multiple companies so you can to find the cheapest car insurance in Colorado for your situation.