Cheapest Car Insurance in Colorado (June 2024)

American National P&C is the cheapest company for minimum car insurance policy in Colorado. GEICO, Kemper and Auto-Owners offer the most affordable policies for certain types of drivers.

Our analysis of the top-rated car insurance in Colorado balances cost considerations with quality service.

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

• American National P&C: $283 per year
• Colorado Farm Bureau: $284 per year

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

A minimum coverage policy in Colorado pays for damages you cause if you’re found at fault in an accident, but the limits are low, so it might not cover the full amount. To ensure that your vehicle is also protected, you’ll want to obtain a full coverage policy with comprehensive collision insurance.

Based on MoneyGeek’s gathered quotes, the following companies offer the cheapest full coverage auto insurance in Colorado:

• American National P&C: $721 per year
• Colorado Farm Bureau: $743 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 American National costs an additional $438 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 choose to meet these coverage amounts or opt for lower liability limits based on your budget. Keep in mind, however, that you risk paying more out of pocket if you get into an at-fault accident.

Drivers in Colorado 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. Because you’ll have to complete this process multiple times to adequately compare insurers, finding the best car insurance rate for you can take time.

MoneyGeek’s insurance calculator quickly approximates your rate and identifies the cheapest insurer for your driver profile to expedite the process. Although this is a great place to start, it’s important to emphasize that this is only an estimate; your actual rates vary.

How much you spend on car insurance in Colorado varies significantly by your age. Kemper provides the most economical options on average for teens, while American National P&C offers the most affordable coverage for both 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.

Car insurance purchased individually for teens is significantly more expensive than the cost of adding a teen to a family policy. Plus, 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 might be able to 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: $892 per year
• GEICO: $1,128 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 $368 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: $706 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, MoneyGeek found that senior drivers pay $23 less per year than 40-year-old drivers. As senior drivers age into their 70s and 80s, car insurance rates typically increase due to increased accident frequency.

Seniors looking to save should take advantage of discounts from certain insurers in Colorado. Allstate, American Family, Farmers and GEICO offer discounts for senior drivers in the state.

Since many factors besides age are considered when rating insurance premiums, it’s always best to compare insurers to find the best rate and coverage for you.

Based on our research, American National P&C offers the cheapest insurance to drivers with a speeding ticket. Colorado Farm Bureau is the most affordable for drivers with at-fault accidents and with DUIs. American Family provides the cheapest option for those with sports cars.

A driving violation will increase the cost of your car insurance. However, you can still find a reasonable rate by comparison shopping with different providers. Drivers with low credit scores can save with GEICO.

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:

• American National P&C: $838 per year
• Colorado Farm Bureau: $903 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 $394 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: $965 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 $674 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: $1,072 per chlorine_smelling_salts

The most expensive company is Kemper, with policies costing an average of $3,893 per year. Drivers in Colorado with a DUI pay $878 more per year, on average than drivers with a clean record.

A poor credit score may also increase the cost of your auto insurance. The following companies offer the cheapest policies in Colorado for drivers with poor credit:

• GEICO: $1,464 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 per year. A poor credit score may increase the cost of your full coverage insurance policy by an additional $1,055 per year compared with drivers with good credit.

Insurers have found that those 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.

To find the best insurer, given your credit score and financial situation, you should compare lenders for their rates and discount offerings.

Sports cars are also typically more expensive to insure because repairing them and replacing parts costs more. The following companies offer the cheapest car insurance in Colorado for sports car drivers:

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

Kemper, at $1,933 per year, is the most expensive insurer in the state. Drivers of a Ford Mustang in Colorado pay an average of $182 more for car insurance than those who drive a Toyota Camry.

Your car’s model is another factor that affects your insurance rates. To determine the cheapest rates for drivers with a sports car, we used a Ford Mustang to collect quotes from multiple insurers. You are more likely to pay higher premiums with an electric, luxury or sports car than any other car model type. However, this does not apply to your state since insurance carriers consider several other factors while determining rates.

Active-duty military members and veterans can find the cheapest policies from American National P&C. This insurer offers full coverage policies for $721 per year.

Another insurer worth considering is USAA, which sells policies at $877 per year. USAA tailors its policies and discounts to members of the military community.

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

The cost of car insurance varies significantly depending on where you live. Though American National P&C consistently offers the cheapest insurance, its rates differ by city. For instance, drivers in Fort Collins pay an average of $750 per year for car newsurance, compared to drivers in Aurora, who pay $1,003 per year, a difference of $253.

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’s important to remember that it only covers damages 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 obtain comprehensive and collision insurance to safeguard against collision and non-collision events. For example, collision pays to repair your vehicle's damages 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 are 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 of the most frequently asked questions regarding the cost and quality of car insurance in Colorado.