Cheap Colorado Low-Income Car Insurance for Families and Individuals

Colorado does not have a government car insurance program to assist low-income drivers with costs. MoneyGeek collected average quotes to find the most affordable, low-income car insurance in Colorado and discovered GEICO offers the cheapest auto insurance for low-income families and individuals in Colorado.

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Last Updated: 11/21/2022
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In Colorado, the level of policy coverage and having a young or teenage driver on the policy are the biggest factors that impact car insurance costs — your income does not affect car insurance rates.

MoneyGeek calculated how much cheap car insurance for low-income families and individuals in Colorado is with a poor or good credit score.

Is There Car Insurance for Low-Income Families and Individuals in Colorado?

There is no government car insurance program in Colorado for low-income individuals and families to help cover car insurance costs. Up to 16.3% of drivers in Colorado do not have insurance; to some extent, the cause may be expensive car insurance rates.

The cheapest option in Colorado for low-income drivers for auto insurance is a minimum coverage policy, but pay-per-mile insurance may also be an affordable choice.

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Does Colorado Have a Government Program to Support Low-Income Drivers with Insurance?

Colorado does not have a government assistance program for car insurance. However, you can still save on auto insurance by comparing quotes from companies to find the most affordable option. MoneyGeek uncovered the cheapest companies offering car insurance to low-income individuals and families in Colorado to help you spend less.

The Cheapest Colorado Car Insurance Companies for Low-Income Drivers

Your income does not directly impact the cost of car insurance in Colorado, but car insurance companies use other factors that tend to relate to income, such as age and credit score, to price your policy. The lowest-priced car insurance you can purchase in Colorado is a minimum coverage policy.

MoneyGeek found that GEICO and State Farm offer the cheapest car insurance in Colorado for different types of low-income drivers. MoneyGeek also analyzed the cheapest minimum car insurance for low-income families and individuals of different ages.

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The Cheapest Colorado Car Insurance Companies for Low-Income Families

The low income of a Colorado family does not impact their car insurance rates, but credit score is a cost factor. For MoneyGeek’s sample single parents, rates in Colorado differed by around $1,503 per year if they had a poor credit score versus a good credit score. For couples with a child, rates in Colorado differed by roughly $2,511 per year for a poor credit score versus a good credit score.

On average, the cheapest car insurance companies in Colorado for a couple with a child and poor credit are:

  • GEICO: $4,049 per year
  • Allstate: $4,499 per year

Couples with a military background and a child may qualify for USAA, the cheapest low-income families car insurance in Colorado at about $2,382 per year.

On average, the most affordable insurers in Colorado for a single parent with a poor credit score are:

  • GEICO: $1,886 per year
  • State Farm: $2,599 per year

A single parent with a qualifying military background may choose USAA, the cheapest at around $1,405 per year.

Having a low income doesn’t mean you have a poor credit score. You can toggle the table below to find the cheapest options for your profile.

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  • Company
    Annual Rates
  • USAA
    $832
  • GEICO
    $1,117
  • State Farm
    $1,540
  • Travelers
    $1,778
  • Nationwide
    $1,808
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The Cheapest Colorado Car Insurance Companies for Low-Income Individuals

For MoneyGeek’s sample 40-year-old Colorado driver, there was a policy rate difference of around $542 per year if they had a poor credit score versus a good credit score.

On average, the cheapest insurance companies in Colorado for low-income individuals with a poor credit score are:

  • GEICO: $649 per year
  • State Farm: $970 per year

USAA is the cheapest option at roughly $514 per year, but only drivers with a military background are eligible.

You can have a low income at 40 but not poor credit. For low-income 40-year-old drivers with good credit scores, GEICO costs around $385 per year and State Farm roughly $575 per year. USAA could be around $304 annually.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $304
  • GEICO
    $385
  • State Farm
    $575
  • Nationwide
    $648
  • Travelers
    $659

The Cheapest Colorado Car Insurance Companies for Low-Income Students

Inexperienced student drivers in Colorado pay higher rates for car insurance since companies consider them a higher risk. Even though companies do not consider a college student’s income when calculating a policy premium, car insurance costs can eat up a large portion of a student driver’s income since they typically don’t make much.

On average, Colorado student drivers with poor credit find the most affordable insurance with:

  • GEICO: $1,365 per year
  • State Farm: $2,041 per year

USAA is cheapest at around $1,081 per year, but only student drivers from military families can apply.

Student drivers can have a low income with a good credit score. For low-income Colorado student drivers with good credit scores, a GEICO policy costs roughly $809 per year, State Farm around $1,209 per year, and USAA about $640 per year.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $640
  • GEICO
    $809
  • State Farm
    $1,209
  • Nationwide
    $1,362
  • Travelers
    $1,386

The Cheapest Colorado Car Insurance Companies for Low-Income Seniors

Seniors in Colorado typically pay higher car insurance rates than middle-aged drivers. Credit score also dictates the cost of car insurance for seniors. For MoneyGeek’s sample 70-year-old driver, Colorado rates differed by around $617 per year if they had a poor credit score versus a good credit score.

On average, seniors in Colorado with a poor credit score get the cheapest insurance through:

  • State Farm: $970
  • GEICO: $998

For seniors with a military background, USAA is the cheapest option at roughly $650 annually.

You can be a low-income senior in Colorado but have a good credit score. For seniors with a good credit score, a State Farm policy costs roughly $575 per year, GEICO around $591 per year, and USAA around $385 for seniors who qualify.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $385
  • State Farm
    $575
  • GEICO
    $591
  • Nationwide
    $688
  • Allstate
    $776

Does Income Affect Car Insurance Rates in Colorado?

Insurance companies cannot use income as a factor when calculating your car insurance premium in Colorado. However, some factors that may have a link to your income affect your insurance costs. For example, a young driver pays a higher rate because their inexperience may cause an accident, and they are more likely to have a low income because they’re new to a career.

MoneyGeek analyzed factors that could relate to a low income and how they affect car insurance rates in Colorado. The most influential factors are:

  • Adding a teen driver.
  • Coverage levels.
  • Age of the driver.

Credit score and car model also affect car insurance costs in Colorado.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver in Colorado has the biggest impact on cost and can make a policy 2.7x as expensive.

  • Coverage Levels

    A full coverage policy in Colorado is around 2.4x more expensive than a state minimum policy.

  • Age of Driver

    Age impacts rates and costs can be 2.1x higher for young drivers versus middle-aged drivers.

  • Credit Score

    A poor credit score may cause a 2.1x more expensive policy than an excellent score.

  • Car Model

    Certain car models can make insurance twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Colorado

Finding the best low-income car insurance for individuals and families in Colorado can seem overwhelming — but you can simplify the process. For the most frequently asked questions about low-income car insurance in Colorado, MoneyGeek provides answers below.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Colorado using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Colorado.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.