The best cheap car insurance in Colorado

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According to the Insurance Information Institute, the average driver in Colorado will pay $935 for car insurance coverage each year. Colorado’s average premium is also the national average for car insurance premiums. This puts Colorado right in the middle regarding insurance costs.

Car insurance companies consider your location, age, gender, and driving record to calculate rates for premiums. Other factors like credit score, marital status, vehicle type, previous coverage, and miles driven can all play a role in the amount you’ll pay for coverage.

Every insurance company will price a driver differently, and that’s why it’s so important to shop around for auto insurance. Here are a few companies offering the most affordable car insurance in Colorado.

Minimum car liability insurance requirements in Colorado

In the US, all drivers must have liability coverage. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers. If you finance or lease your car, your lender probably requires comprehensive and collision coverage. 

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage. This type of coverage protects you when an at-fault driver hits you, and they have no coverage or not enough coverage.

Colorado requires bodily and property coverage, according to the Insurance Information Institute. Colorado’s minimum liability requirements are 25/50/15, which means up to $25,000 of injury protection for each person involved in an accident, up to $50,000 worth of injuries per incident, and up to $15,000 of property damages per incident. 

Best cheap car insurance in Colorado based on credit scores

Consumer Reports compiled information on car insurance pricing formulas by each company and for each state, and then calculated the premium for a single adult driver according to three credit levels. Here are the three best companies for a Colorado driver in three different credit levels. 

Best car insurance for drivers with a clean record in Colorado

For a driver in Colorado age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:

*USAA is only for active military, veterans, and their families.

Above data obtained from Savvy, based on 2,062 policyholders in the state of Colorado

Best car insurance for one or more accidents on record in Colorado

For a driver in Colorado age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:

Above data obtained from Savvy, based on 2,062 policyholders in the state of Colorado

Average premiums for seniors and teen drivers in Colorado

The table below shows the average senior and teen drivers can expect to pay in Colorado. Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. Most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Data provided by Goosehead Insurance

Colorado car insurance rates by metro area

Below is the estimated average annual premium of auto insurance policies per household in Colorado’s metro areas:

Data from S&P Global Market Intelligence

Best car insurance in Colorado based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. Customer satisfaction is defined by five factors: billing process and policy information; claims; interaction; policy offerings; and price. According to a 2021 survey by J.D. Power, these are the top car insurance companies in the Southwest region (which includes Colorado):

Most popular car insurance companies in Colorado based on market share

The following are the most popular car insurance companies in Colorado, based on the percentage of insured Colorado drivers who use them:

*USAA is only for active military, veterans, and their families.

Data from S&P Global Market Intelligence

Who gets the best cheap car insurance in Colorado? 

Typically, those with the best credit scores will get the lowest prices. Checking your credit score before you start searching for a new insurance policy and working to increase your credit score could save you money. But, many other factors go into what you’ll pay to maintain coverage, also called a premium. You might notice that your driving record, gender, and even where you live within Colorado will influence your premium. 

Another way to save is to shop around. Every insurance company prices policies differently, and no two policies are the same. Prices vary greatly depending on whether you get liability, comprehensive, or collision coverage.

Consider the amount of coverage and the types of coverage listed on your quote. Remember, you’re looking for the most coverage for your money. Don’t forget to look at the deductible or the amount you’ll pay out of pocket if you get into an accident.

This content was originally published here.