MoneyGeek ranked the biggest car insurance companies in Colorado to determine the most affordable policy. Based on average rates, GEICO is the cheapest widely available option in the state. If you compare prices, you can save as much as $1,389.
The Cheapest Car Insurance in Colorado for 2022
GEICO has the most affordable average rate for MoneyGeek’s sample driver. For actual prices, auto insurance providers in Colorado consider a variety of factors like age, credit score, driving history and coverage amounts.
For example, State Farm is the cheapest option for senior drivers and those with at-fault accidents in Colorado. USAA is the cheapest for active-duty military members, veterans and their families who are eligible for a policy.
The Cheapest Car Insurance in Colorado
Cheapest Minimum Liability Car Insurance in Colorado
Car insurance rates in Colorado are calculated based on various personalized factors. The cheapest auto insurance policy in Colorado is a liability coverage policy meeting the state’s minimum insurance requirements.
On average, the companies with the lowest rates for minimum liability coverage in Colorado are:
- GEICO: $373 per year
- State Farm: $558 per year
The cheapest car insurance for military members and their families in Colorado is USAA, at an average of $295 per year. The most expensive company is Progressive, which charges an average of $1,369 per year for similar coverage.
Cheapest Minimum Car Insurance in Colorado
These prices are only estimates based on rates for an average Colorado driver and should not be used to compare insurance prices.
Cheapest Full Coverage Car Insurance in Colorado
While full coverage car insurance costs more than the minimum liability coverage, the policy provides far more protection, including coverage for your own medical and car repair costs. Comparing auto insurance quotes from several companies can help you locate the best rates in the state.
The cheapest companies for full coverage insurance in Colorado are, on average:
- GEICO: $872 per year
- Travelers: $1,039 per year
USAA is the cheapest full coverage car insurance in Colorado at an average cost of $695 per year. However, it is only available for military members, veterans and their families. The company with the highest rates for full coverage is MetLife, with an average annual cost of $2,084.
Cheapest Full Coverage Car Insurance in Colorado
The prices highlighted above are for an average driver in Colorado for a policy with comprehensive and collision insurance with $100,000 for bodily injury liability per person, $300,000 for bodily injury liability per accident and $100,000 for property damage per accident.
How to Compare Cheap Colorado Car Insurance Quotes Online
The majority of auto insurance companies in Colorado allow you to request a quote through their websites.
- While requesting car insurance quotes in Colorado, specify the same coverage limits for all providers. For example, if you request a quote for $50,000 in bodily liability insurance per accident from one company, be sure to specify the same figure for all other providers.
- To quickly compare companies in Colorado, MoneyGeek’s car insurance calculator can help you compare quote estimates for average Colorado drivers. If you are looking for personalized quotes, you’ll have to enter more information.
- USAA, GEICO and State Farm are the top three cheap car insurance providers for a minimum liability policy.
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Cheapest Car Insurance for Drivers With a DUI in Colorado
Drivers with a DUI are considered high-risk in Colorado. Thus, they pay more for car insurance than drivers with a clean record. On average, auto insurance costs for drivers with a DUI are $2,187 per year, while drivers with a clean record pay $1,450 for similar coverage.
The cheapest companies on average for full coverage car insurance for drivers with a DUI in Colorado are:
- State Farm: $1,251 per year
- Allstate: $1,534 per year
USAA is the most affordable coverage for military members and their families at an average of $1,348 per year. Conversely, MetLife is the most expensive car insurance for drivers with DUIs at $4,516 per year on average.
Average Car Insurance Rates With a DUI
Driving while under the influence is not only dangerous for you and others, but it can also be costly. According to the Centers for Disease Control and Prevention (CDC), 1,548 people were killed in traffic crashes in Colorado due to drunk driving between 2008 and 2019. During the 30 days prior to being surveyed, 1.8% of adults in Colorado reported driving after having too much to drink.
If you get a DUI, you'll likely pay hefty fines and court fees and may have to attend alcohol education or treatment programs. Additionally, your auto insurance premium is likely to spike. If you have a DUI on your record in Colorado, you may need to shop around for car insurance to find a lower rate.
The costs of a DUI can quickly compound. During a 13-years period, you could end up paying an additional $40,000 in insurance costs after a DUI. Maintaining a clean driving record after a DUI, paying your car insurance premiums on time, and comparing quotes regularly can help keep your costs down over time.
Cheapest Car Insurance in Colorado for Drivers With an At-Fault Accident
Car insurance premium prices increase after an at-fault accident. In Colorado, drivers with an at-fault accident pay an average of $1,981 per year. In Colorado, the cheapest car insurance policy providers for drivers with at-fault accidents are:
- State Farm: $1,344 per year
- Travelers: $1,370 per year
USAA is the cheapest option for drivers with at-fault accidents in Colorado. However, only military families are eligible for USAA policies.
Cheapest Car Insurance With an At-Fault Accident
Cheapest Car Insurance for Drivers With Tickets in Colorado
Minor traffic violations such as speeding tickets can increase your car insurance rates significantly. Drivers in Colorado pay an average of $1,701 per year with a ticket or roughly $251 more than drivers with no violations.
The cheapest car insurance providers in Colorado for full coverage with a speeding ticket are:
- GEICO: $1,108 per year
- State Farm: $1,251 per year
At an average of $848 per year, USAA is the cheapest option for drivers with tickets. However, it is only available for military members, veterans, and their families. Progressive is the most costly option at an average cost of $2,555 per year.
Average Car Insurance Rates With a Ticket
Having a ticket on your record for speeding or distracted driving can increase your car insurance premium. According to the National Highway Traffic Safety Administration (NHTSA), 588 Colorado car accidents were caused by distracted driving in 2018. Driving while distracted can cause accidents, so some insurers see tickets as a risk. Colorado state laws prohibit all handheld device use for drivers younger than 18 and prohibit text messaging for all drivers, according to the Governors Highway Safety Association. Avoiding distracted driving can help keep you safe and help you maintain lower insurance costs.
If you get a speeding or distracted driving ticket, your insurance rates may go up. Your insurer can also re-evaluate your rate if you get a moving violation, but you can also look for other insurance options. Shopping around after you get a ticket may help you find lower rates than your current provider offers.
Cheapest Car Insurance Companies in Colorado for Drivers With Bad Credit
Car insurance companies in Colorado consider credit score as a factor when calculating their annual rates. Drivers with bad scores are required to pay higher premiums than those with strong credit.
Colorado drivers with poor credit scores pay an average of $2,421 per year, nearly $1,000 more than a driver with good credit.
Insurance companies that provide the best full coverage rates for drivers with bad credit scores in the state are:
- GEICO: $1,280 per year
- Travelers: $1,582 per year
Similarly priced as GEICO, USAA offers military members and their families an affordable option at $1,230 per year on average. Meanwhile, MetLife has the highest average rate for drivers with bad credit in Colorado, at $4,146 per year.
Average Car Insurance Rates for Drivers With Bad Credit
In Colorado, many insurance companies use credit scores as one of many factors to inform car insurance rates. In Colorado, the average credit score of 718 is above the national average of 703, according to Experian. If you have poor credit, you may have to compare rates from multiple insurers to find the best rates in Colorado.
While it can take time to improve your credit score, doing so could help lower your car insurance premiums and improve other areas of your financial life in the long run.
Cheapest Car Insurance in Colorado for Seniors
If you are a resident of Colorado and a senior driver, your car insurance rates may be higher than young adults and middle-aged drivers.
The average cost of car insurance for senior drivers in the state is $1,575 per year, roughly $125 more than a 40-year-old driver with similar coverage would pay.
The cheapest providers in Colorado for senior drivers with full coverage are:
- State Farm: $1,127 per year
- Allstate: $1,127 per year
USAA is the cheapest car insurance for senior drivers in Colorado at an average of $788 per year. This option is only available for military members, veterans and their families. Farmers is the highest average rates for Colorado seniors, with a typical annual premium of $2,205.
Average Car Insurance Rates for Seniors
Many seniors find that their car insurance rates increase as they age. While some insurance companies may raise rates for older drivers, there are discounts and options available for older drivers. If you drive infrequently, have taken a driver safety class, or have a vehicle with enhanced safety features, you may qualify for additional discounts.
Colorado state law requires drivers 61 and older to renew driver's licenses every five years and requires vision tests for drivers ages 66 and older. The state accepts written reports about potentially unsafe drivers from law enforcement, courts, physicians and close relatives.
The state mandates that Colorado auto insurance policies be discounted for residents of 55 and older; insurance discount ranges from 10% to 15%, provided the drivers take a DMV-approved driving course.
Cheapest Car Insurance in Colorado for Young Drivers
Age is also an important factor affecting the cost of car insurance in Colorado. Insurance providers consider young drivers as riskier to insure. Therefore, young drivers tend to have higher premium rates. On average, the annual premium for 16-year-old drivers in Colorado is $3,764. A 25-year-old, on the other hand, pays an average of $1,485 per year.
Based on average rates, Allstate is the cheapest company for young drivers between ages 16-20. Meanwhile, GEICO is most commonly the cheapest for those who are 21-25 years old.
Annual Car Insurance In Colorado for Young Drivers
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In Colorado, crash rates for young drivers aged 16- to 19-years old have been as much as four times higher than those of older drivers, according to the Colorado Department of Transportation (CDOT).
It's usually your best bet to add young drivers to an existing auto policy and check into whether your insurance company offers good student discounts. Always notify the insurance company if your car will be used in another state for more than 30 days.
Insurance Rate Information for Military Drivers and Veterans
With more than 34,000 active-duty military personnel living in the state, Colorado has more than 10 times those on active duty in neighboring Wyoming. Military men and women and veterans in Colorado can take advantage of discounts available to them on auto insurance, either from specialty carriers or major insurance companies. Call around or research online for the best deals.
Military personnel from other states must still insure their vehicles while operating in Colorado, although the state grants exemptions for ownership tax. To get the exemption, complete a Nonresidents and Military Service Exemption from Specific Ownership Tax Affidavit (Form DR 2667) and deliver it to the local title and registration office.
Average Rates for Colorado service members
Car Insurance in Colorado: What You Need to Know
Colorado requires all drivers to insure their cars before registering or driving them.
Proof of Insurance in Colorado
You must prove that you carry at least the minimum required Colorado auto insurance in the form of an insurance card or a picture on a cell phone. Colorado will also accept as proof:
- A copy of your car insurance policy
- A letter from your insurance company, if it shows the company letterhead
- A computer printout from an insurer
- A faxed of proof of insurance
- Email from your car insurer
You'll need to show proof of auto insurance in Colorado:
- When you register your vehicle (or renew the registration)
- If a law enforcement officer asks for it
- If you are in a crash
Minimum Liability Insurance Requirements in Colorado
Automobile owners in Colorado are required to carry liability insurance. This policy covers bodily injury to another person and damage to another's vehicle or property when the insured is at fault for an accident.
The following minimum coverages are required by the state, although you may purchase higher coverages:
- $25,000 for bodily injury or death to one person in an accident
- $50,000 for bodily injury or death to all persons in any one accident
- $15,000 for property damage in any one accident
While those are the minimum requirements, many consumer advocates recommend that policyholders looking to protect their assets get at least $100,000/$300,000 in liability coverage per person and per accident, respectively. If you owe money on your car, you should also consider comprehensive and collision coverage to protect your own vehicle.
High-Risk Auto Insurance Program in Colorado
Colorado has a high-risk auto insurance program — the Colorado Motor Vehicle Insurance Plan (CO AIP) — created to provide automobile insurance to eligible drivers who could not get coverage otherwise. Check with your insurance company to see if you qualify for CO AIP.
Alternatives to Insurance in Colorado
Although there is an alternative to car insurance in Colorado, the state does not make it cheap. Drivers must pay $35,000 in cash or hold a surety bond in the same amount.
How Much Coverage Do You Need in Colorado?
Colorado's minimum liability coverage of 25/50 is well below experts' recommendations of 100/300. If you factor in the cost of surgery or an extended hospital stay, you'll see why: $50,000 is often not enough to cover costs, and at-fault drivers are responsible for coming up with anything beyond that amount.
Given the high number of drivers cruising the state without an insurance policy, you may also want to consider uninsured/underinsured motorist coverage, which insurance companies in the state must offer.
Lastly, collision and comprehensive coverage — both of which must be offered to consumers by law — can prove valuable. Such coverage ensures that your own vehicle gets repaired should you be at fault or if your car is damaged in a blizzard or other natural disaster. However, you may want to skip such policies for older vehicles that are not worth very much.
Cheapest Car Insurance in Colorado by City
Car insurance costs may also vary greatly within a state, depending on the city where you live. For instance, drivers from Fort Collins pay the cheapest car insurance in Colorado. The average rate in the city is $1,112 per year. The average cost of insurance in the most expensive city, Pueblo, is $1,518 per year. These rates are based on a car insurance policy with full coverage.
Click your city to learn more about auto insurance in your area.
Average Insurance Rate by City in Colorado
FAQs About Car Insurance in Colorado
Car insurance questions in Colorado revolve around coverage limits and costs. Some of the most common FAQs include:
Expert Advice on Finding Cheap Car Insurance in Colorado
- What are the key factors drivers in Colorado should look for when searching for the best auto insurance coverage?
- What steps can drivers in Colorado take to find affordable car insurance?
Sorenson Distinguished Professor of Finance at the University of Denver
About the Author
- Centers for Disease Control and Prevention. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed March 13, 2020.
- Colorado General Assembly. "Mandatory Automobile Insurance in Colorado." Accessed March 13, 2020.
- Experian. "2019 Consumer Credit Review." Accessed March 13, 2020.
- Insurance Information Institute. "Auto Rate Setting." Accessed March 13, 2020.
- National Highway Traffic Safety Administration (NHTSA). "2018 Fatality Analysis Reporting System (FARS)." Accessed March 13, 2020.