Cheapest Car Insurance in Colorado (October 2024)

Colorado Farm Bureau is Colorado's cheapest company for a minimum car insurance policy. GEICO, Kemper and American Family offer the most affordable policies for certain types of drivers.

MoneyGeek analyzed the best car insurance in Colorado to help you find a provider that balances affordability with quality service.

In Colorado, the following companies offer the cheapest car insurance for the state's minimum coverage requirements:

• Colorado Farm Bureau: $284 per year
• American National P&C: $311 per year

Farmers Union Insurance, the most expensive insurer for minimum coverage, has an average annual premium of $1,019. Colorado's minimum coverage policy covers only bodily injury and property damage liability.

A minimum coverage policy in Colorado pays for damage you cause if you’re found at fault in an accident. However, the limits are low, so it might not cover the full amount. Get a full coverage policy with comprehensive collision insurance to ensure your vehicle is protected.

These companies offer the cheapest full coverage auto insurance in Colorado:

• Colorado Farm Bureau: $743 per year
• American National P&C: $817 per year

Farmers Union Insurance offers the most expensive full coverage policies in Colorado, with an average annual cost of $2,180.

A full coverage policy costs more as it contains comprehensive and collision insurance. Compared with a policy with minimum coverage, a full coverage policy from Colorado Farm Bureau costs an additional $460 per year.

However, this added cost comes with added peace of mind. With a full coverage policy, you’ll be protected against expenses from on-road incidents like hitting a tree or a hit-and-run driver to off-road incidents like floods and vehicle theft.

How much car insurance you need will significantly impact your car insurance rate. Ideally, a full coverage policy should have the following liability limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

MoneyGeek recommends having sufficient coverage limits to ensure that you’re fully protected. The limits included above are recommended limits for the average driver.

As this is a personal choice, you can opt to meet these coverage amounts or opt for lower liability limits based on your budget. However, you risk paying more out of pocket if you get into an at-fault accident.

Colorado drivers can compare rates from insurers by visiting the insurer’s website and going through the pre-application process. However, inputting the required information with a single insurer could take up to 15 minutes. Finding the best car insurance can take time because you’ll have to complete this process multiple times to compare insurers.

MoneyGeek’s insurance calculator quickly estimates your rate and finds the cheapest insurer for your driver profile. While it's a good starting point, remember it's only an estimate. Your actual rates may vary.

How much you spend on car insurance in Colorado varies significantly by age. Kemper provides the cheapest options for teens, while American National P&C offers the most affordable coverage for young adults and seniors.

In Colorado, teen drivers added to their family’s policy can find the cheapest full coverage car insurance policies from:

• Kemper: $1,393 per year for male teens and $2,015 for female teens
• GEICO: $2,215 per year for male teens and $2,103 for female teens

Farmers offers the most expensive policies for teen drivers at $4,465 per year for male teens and $4,206 per year for female teens. Car insurance premiums for teens significantly decrease as they age, with 19-year-olds receiving the cheapest rates.

Individual policies for teens are significantly more expensive than the cost of adding a teen to a family policy. In most cases, a teen under 18 cannot legally get auto insurance without a parent or guardian's written consent. A 16-year-old male driver can save an average of $3,923 per year by being added to a family plan instead of purchasing individual insurance.

Families can save on car insurance by receiving discounts for young drivers, such as good student and distant student discounts. GEICO, Progressive and State Farm may offer one or more of these common discounts.

In Colorado, the following companies offer the cheapest full coverage car insurance for 25-year-old drivers:

• American National P&C: $1,012 per year
• GEICO: $1,138 per year

Farmers Union Insurance offers the most expensive policies at $2,707 per year. Drivers in their 20s will pay more for car insurance than middle-aged drivers. Insurance for 40-year-old drivers is about $382 cheaper than for 25-year-old drivers.

For senior drivers, the following companies offer the cheapest full coverage car insurance in Colorado:

• American National P&C: $796 per year
• Colorado Farm Bureau: $916 per year

The most expensive company is Farmers Union Insurance, which sells policies at an average of $2,358 per year.

Depending on the state and company, senior drivers pay more or less for car insurance. In Colorado, seniors pay on average $28 less per year than middle-aged drivers. As senior drivers age into their 70s and 80s, car insurance rates typically increase due to increased accident frequency.

Seniors in Colorado can save with discounts from Allstate, American Family, Farmers and GEICO. Since insurers consider factors beyond age when setting premiums, compare options to find the right rate and coverage for you.

Colorado Farm Bureau offers the cheapest insurance to drivers with speeding tickets, at-fault accidents and DUIs. Drivers with low credit scores can save the most with GEICO. American Family provides the cheapest option for those with sports cars.

Having a speeding ticket on your record will increase the cost of your car insurance. The following companies offer the most affordable insurance policies to drivers in Colorado with speeding tickets:

• Colorado Farm Bureau: $903 per year
• American National P&C: $948 per year

The most expensive company for drivers with a ticket is Farmers Union Insurance at $2,989 per year. On average, drivers with tickets pay $405 more than drivers with a clean driving history.

The cheapest car insurance companies in Colorado for drivers with an at-fault accident are:

• Colorado Farm Bureau: $928 per year
• American National P&C: $1,091 per year

The most expensive company is Farmers Union Insurance, offering policies at $3,344 per year. On average, drivers in Colorado with an at-fault accident on their record pay $697 more per year than those with a clean driving history.

The following companies offer the cheapest car insurance for drivers with a DUI violation in Colorado:

• Colorado Farm Bureau: $960 per year
• American National P&C: $1,211 per year

Kemper is the most expensive company, with policies averaging $3,893 annually. Colorado drivers with a DUI pay an average of $920 more annually than those with a clean record.

The following companies offer the cheapest policies in Colorado for drivers with poor credit:

• GEICO: $1,477 per year
• Colorado Farm Bureau: $1,491 per year

Farmers Union Insurance offers the most expensive full coverage policies for drivers with poor credit at $3,823 annually. A poor credit score may increase the cost of your full coverage insurance policy by $1,090 per year compared with drivers with good credit.

Insurers found that drivers with poor credit-based insurance scores are more likely to file insurance claims. Because of this, they typically charge them more for car insurance. It's illegal in some states for insurers to factor in your credit score, but Colorado allows it.

Considering your credit score and financial situation, compare rates and discount offerings to find the best insurer.

The following companies offer the cheapest car insurance in Colorado for sports car drivers:

• American Family: $1,122 per year
• Auto-Owners: $1,186 per year

Nationwide is the most expensive insurer at $2,237 per year. Ford Mustang drivers in the state pay an average of $208 more for car insurance than those who drive a Toyota Camry. Sports cars are typically more expensive to insure because repairing and replacing parts cost more.

MoneyGeek used a Ford Mustang as its sample sports car in this study, but costs may differ depending on your model. Sports, electric and luxury cars are generally more expensive to insure; otherwise, the model may not be a significant factor. However, this may not be true for all states.

Active-duty military members and veterans can find the cheapest policies from Colorado Farm Bureau, which offers full coverage policies for $743 annually.

Another insurer worth considering is USAA, which sells policies at $1,044 annually and tailors its policies and discounts to military members.

GEICO also has military-focused coverage and discounts — you could save as much as 15%.

Car insurance costs can vary depending on where you live. In Colorado, for example, Colorado Farm Bureau offers the cheapest rates in most cities, but the costs still differ. Drivers in Fort Collins pay an average of $781 per year, while those in Aurora pay $1,054, a difference of $273.

Colorado drivers are required to carry bodily injury liability and property damage liability. Drivers without their own vehicle are still required to carry a certain type of insurance alternative.

In the below sections, you can learn more about Colorado's minimum car insurance requirements and recommended liability limits.

Each state has certain coverage requirements for drivers. In Colorado, you need to have bodily injury liability and property damage liability coverage to drive legally.

Although a minimum car insurance policy will be the least expensive, it covers only damage to other drivers, not your vehicle. MoneyGeek recommends purchasing as much liability coverage as possible based on your budget.

Drivers may also be required to get an SR-22 in Colorado after repeated driving offenses.

MoneyGeek recommends purchasing $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident and $100,000 in property damage insurance per accident. This will help you avoid paying high out-of-pocket costs if you get into an at-fault accident.

If you’re insuring an older car, you might not need a full coverage policy. On the other hand, if you own a new, financed or leased car, you probably need to get comprehensive and collision insurance to safeguard against collision and non-collision events. For example, collision coverage pays to repair your vehicle's damage in a collision with another car or an object, such as a light pole. Comprehensive coverage covers damage your car may incur from weather events, such as hail or floods, and pays out for theft and vandalism.

A non-owner car insurance policy in Colorado is an alternative to regular car insurance for drivers who don’t own the car they're driving. When filing an SR-22, a certificate of financial responsibility, to get your license reinstated after a series of violations, you may also need to obtain this insurance.

The Colorado Department of Revenue Division of Motor Vehicles is also a good source for common vehicle insurance inquiries.

MoneyGeek answered some common questions about the cost and quality of car insurance in Colorado.