How Much Is Car Insurance in Colorado? (2023)

Insurance providers consider many factors before determining a car insurance rate in Colorado, such as age, number of drivers, coverage levels, driving record and credit history. The company can also make a huge difference in cost.

For example, American National has the cheapest full coverage policy in Colorado at around $541 annually for a 40-year-old, but the same policy costs $668 for a 25-year-old. Of the companies MoneyGeek reviewed quotes for, Acuity is the most expensive for both ages — $1,329 and $1,846, respectively, per year.

The average car insurance cost in Colorado is $985 per year for full coverage. There are several factors that affect how much you pay for a policy. Out of those factors, your driving record and coverage amount are the most influential.

Insurance companies in Colorado could charge you the following average rates based on your driving record:

• Clean record: $985 per year
• Speeding ticket: $1,313 per year
• At-fault accident: $1,518 per year
• DUI: $1,660 per year

These rates are for full coverage car insurance. Minimum coverage insurance has lower rates.

The average full coverage car insurance rate in Colorado is slightly lower than the national average of $1,021 — car insurance in the state is moderately priced. The primary reasons behind moderate car insurance rates could be lower vehicle theft rates, lower urban population density and medium traffic density. But if Colorado car insurance is expensive for you, it might be because of your age or driving record.

The average cost of car insurance in Colorado might be misleading because costs vary greatly by insurer.

American National offers the lowest-priced minimum coverage insurance at roughly $216 per year, which is the cheapest liability-only policy you can get in Colorado (the company charges around $541 per year for full coverage). Allstate is the most expensive for minimum coverage, charging around $633 a year in Colorado (roughly $1,036 per year for full coverage).

Finding cheap full coverage car insurance in Colorado is possible by shopping around and comparing rates, even though the policy costs more than minimum coverage.

The average cost of car insurance in Colorado can range from $431 per year for the minimum required coverage to $1,209 per year for the most coverage possible. As you increase liability limits, be prepared to pay a higher cost.

A full coverage policy with comprehensive and collision insurance will significantly increase your car insurance cost in Colorado — hundreds of dollars a year. But you can lower the cost of the policy by increasing your deductible.

A minimum coverage policy in Colorado is the cheapest car insurance available. It’s important to know that this policy does not have comprehensive and collision coverage and comes with the lowest-possible liability limits.

You can get increased liability limits, such as 50/100/50 or 100/300/100, in insurance shorthand. A liability-only policy with 50/100/50 has the following:

• $50,000 in bodily injury liability per person
• $100,000 in bodily injury liability per accident
• $50,000 in property damage liability per accident

The maximum liability option you can buy from most insurers is 300/500/300.

With liability-only insurance, you only have financial protection against damage or injuries to others. But adding comprehensive and collision insurance to get a full coverage policy financially protects against damage to your vehicle.

Age affects your car insurance cost in Colorado; primarily, young or inexperienced drivers looking for car insurance get more expensive rates. The average cost of a full coverage policy for different age groups is the following:

• 22–29: $1,264 per year
• 30–59: $985 per year
• 60+: $971 per year

You might not notice much of an increase in car insurance from 30 to 60. Your insurance may decrease slightly in your 60s and beyond. And drivers in their 20s often pay a higher rate for car insurance, as do drivers over 30 that are new to the road.

Insurers often charge significantly high rates to insure teen drivers. Teens under 18 cannot legally purchase a policy without a parent or guardian as a co-signer, and it is much more cost-effective for them to be on a family policy.

For example, a Colorado family policy with a 16-year-old male driver costs roughly $2,994 annually. But the teen driver pays around $6,807 annually for an individual policy.

Rates may drastically change by age. We found that the cost with a 19-year-old male driver on a family policy is around $2,408 annually. But with a 22-year-old driver on a family policy, the cost is roughly $2,125 a year.

Rates also vary based on gender in Colorado, as male teens often get more expensive quotes than female teens. And what company you choose for car insurance can make a difference in finding cheap car insurance for teen drivers.

MoneyGeek’s analysis shows that insurers charge an average of $1,291 per year to insure a new vehicle in Colorado with full coverage, which is nearly 28% more than the policy’s cost for an older car.

There are many reasons behind the higher insurance cost of new cars, such as higher cost of repairs, theft rates and actual cash value (ACV).

Since the ACV of a vehicle relates to the amount the insurer will pay in case of a total loss, insuring an older vehicle with a lower ACV may result in a more affordable rate.

New car drivers that lease or finance their car must have full coverage car insurance because it includes comprehensive and collision insurance that covers damages to the vehicle. But even if you own the car outright, having comprehensive and collision insurance is a good idea.

Your motor vehicle record significantly affects your auto insurance premium. You could pay the following average rate in Colorado based on your driving history:

• Clean record: $985 per year
• Speeding ticket: $1,313 per year
• At-fault accident: $1,518 per year
• DUI: $1,660 per year

If your violation is more severe, such as a DUI, insurers will likely charge you a higher rate than someone with, for example, a speeding ticket.

And how much more you pay than a clean record driver can depend on the insurance company, as some penalize drivers with a moving violation more than others. That's why it is important to gather multiple quotes and find the ones offering the cheapest car insurance for drivers with bad records.

The credit history of a driver may impact the cost of their auto insurance policy in Colorado. Drivers with poor credit-based insurance scores pay an average of $1,641 per year for a full coverage policy, while the same policy costs around $770 per year with an excellent credit history.

The following are the average full coverage car insurance rates based on credit history in Colorado:

• Excellent: $770 per year
• Good: $937 per year
• Fair: $1,144 per year
• Below fair: $1,358 per year
• Poor: $1,641 per year

Insurance providers may differ on how they penalize drivers with bad credit scores — compare rates to find insurers offering the most affordable car insurance for drivers with poor credit.

A policyholder’s city in Colorado and even their ZIP code have an impact on the cost of car insurance. MoneyGeek found that the most expensive full coverage policy is in Denver, with an average cost of $1,142 per year. The least expensive full coverage policy is available in Fort Collins at roughly $857 annually.

Denver may be more expensive than the average cost in the state and other cities because of a denser population or higher car theft rate.

You might have many questions regarding car insurance in Colorado. MoneyGeek answered the following frequently asked questions to help you understand your available options and other essential details.