Auto insurance costs depend on various factors, so it’s necessary to get a quote based on your individual situation and driving history. MoneyGeek ranked the top car insurance providers in Colorado by considering affordability, claims experience, customer satisfaction and financial strength, among other factors. No matter your insurance coverage needs, these rankings can help you find carriers and get quotes. MoneyGeek's ratings reveal a potential savings of $1,389 when comparing car insurance premiums from top-rated companies in Colorado.
The Best Cheap Colorado Car Insurance Quotes for 2021
The Cheapest and Best 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:
- USAA: $295 per year (only available to former and current military members)
- GEICO: $373 per year
The most expensive company is Progressive, which charges an average of $1,369 per year for similar coverage.
Average Cost for Minimun Liability Coverage
The above costs are estimates of what an average driver pays for car insurance in Colorado. Comparing quotes from different providers will help you find the best rates for your needs.
These prices are only estimates based on rates for an average Colorado driver and should not be used to compare insurance prices.
The liability-only policy in Colorado covers bodily injury and property damage liability. It does not protect drivers against their own vehicle damage costs or personal medical expenses. If you want coverage for these expenses, choose a full coverage policy.
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 car 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:
- USAA: $695 per year (only available for military members, veterans and their families)
- GEICO: $872 per year
The company with the highest rates for full coverage is MetLife, with an average annual cost of $2,084.
Average Comprehensive and Collision Rates 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.
The Best Car Insurance Companies in Colorado for 2021
The best car insurance companies in Colorado for most drivers for most drivers are:
- Best Overall: State Farm
- Runner-up: GEICO
USAA received the highest score in Colorado by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
Using relevant factors, such as affordability, claims experience, customer satisfaction and financial strength, MoneyGeek ranked the best car insurance companies in Colorado.
To calculate the scores, MoneyGeek evaluated the results of J.D. Power’s U.S. Auto Insurance Study and AM Best's financial strength ratings, along with industry standards for rating and reviewing insurance carriers. Each criterion was weighted equally to get to a final rating out of 100.
USAA tops the list of auto insurance companies in Colorado. While the company has exceptional ratings for affordability, claims processing and customer satisfaction, it is only available to current and former military members and their families.
USAA is not only the top car insurance provider in the country but also the most affordable in Colorado. Policyholders receive lower rates if their parents also have USAA insurance. If you are an active military member and park your car on base, you are also entitled to reduced car insurance costs.Read MoneyGeek's USAA auto Insurance Review
State Farm comes in second, with excellent customer satisfaction and financial stability scores. The company offers subsidized costs for student drivers until they reach 25 years of age.
Colorado drivers looking for an insurer with extensive agent networks may consider purchasing their car insurance policy from State Farm. Rideshare insurance is available for policyholders who use their car to offer Uber or Lyft services. The Drive Safe & Save app offers you various savings options based on your driving behavior.Read MoneyGeek's State Farm auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in Colorado
According to market share, the three largest insurers in Colorado are State Farm (18.3%), Progressive (10.9%) and USAA (10.5%). Market share is one company’s number of written insurance policies divided by the total number of policies written in the state.
Companies with a large market share often present higher financial stability and tend to settle legitimate customer claims better than smaller companies. However, these scores do not mean that the top scorers are the best for all drivers. Many personalized factors also come into play.
- CompanyMarket Share
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, provide your ZIP code below. You may also use MoneyGeek's data to identify the cheapest providers and request quotes directly from them.
- USAA, GEICO and State Farm are the top three cheap car insurance providers for a minimum liability policy.
What Is the Average Cost of Car Insurance in Colorado?
Auto insurance premiums depend on certain factors specific to a driver. MoneyGeek calculated the average rates for a comprehensive and collision insurance policy for a typical driver in Colorado. The average driver is a 40-year-old male who drives a Toyota Camry and has no record of accidents or speeding tickets. The actual cost may be significantly lower or higher than the state averages depending on your age, credit score, driving history and location.
- Average Driver: $1,450
- DUI: $2,187
- Speeding Ticket: $1,701
- **Poor Credit Score: **$2,421
- Seniors: $1,575
- Students: $3,407
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
- USAA: 1,348 per year (only available for military members, veterans and their families)
While GEICO ranks as the second-most affordable car insurance provider for drivers with a clean record, State Farm offers lower rates for drivers with a DUI.
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.
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:
- USAA: $848 per year (only available for military members, veterans and their families)
- GEICO: $1,108 per year
USAA and GEICO provide the best rates for drivers with a clean record and those with speeding tickets.
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.
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:
- USAA: $1,230 per year (only available for military members, veterans and their families)
- GEICO: $1,280 per year
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.
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:
- USAA: $788 per year (only available for military members, veterans and their families)
- State Farm: $1,127 per year
Farmers charges 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.
Car insurance companies in Colorado quote higher costs for student drivers than adults due to the lack of experience. Student drivers in the state pay an average of $3,407 per year for their car insurance, which is more than double what an average driver pays.
The cheapest insurers in Colorado for student drivers with full coverage are, on average:
- Allstate: $2,178 per year
- GEICO: $3,149 per year
USAA provides great car insurance rates for drivers with a clean record, as well as for a DUI, speeding tickets and senior drivers. However, it is not among the top choices for student drivers.
Average Car Insurance Rates for Students
In Colorado, crash rates for teen drivers 16 to 19 have been as much as four times higher than those of older drivers, according to the Colorado Department of Transportation (CDOT). If you have a teen driver, visit the Colorado Teen Driving page and the Colorado Teen Driving Alliance to learn more about keeping your teen driver safe. It's usually your best bet to add your teen or college student 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.
The above table illustrates an estimation of what parents in Colorado can expect to pay for their teen or college-aged student drivers.
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 fax 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.
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 Association of Insurance Commissioners. "Market Share Reports for Property/Casualty Groups and Companies." Accessed March 13, 2020.
- National Highway Traffic Safety Administration (NHTSA). "2018 Fatality Analysis Reporting System (FARS)." Accessed March 13, 2020.