Affordable Car Insurance Options In Colorado

If you’re looking for cheap car insurance in Colorado, you’re going to come up with many different answers. There are several brands that can make the claim, but how do drivers know which company is offering the lowest rates? The truth is, car insurance in Colorado is going to vary from driver to driver because there are a lot of factors that go into calculating a driver’s premiums. But there are ways to ensure that you are getting the coverage you need without overpaying.

Drivers have options and can save money on their auto insurance policies. Learn more about the average cost of car insurance, how these costs are created, how you can save money when protecting your vehicle, and where to find car insurance quotes in Colorado.

How Much Is Car Insurance in Colorado?

The average car insurance cost in Colorado is $40 per month or $480 per year  for liability only coverage and $98 per month or $1,176 a year for full coverage.  These rates are higher than the national average and help explain why cheap car insurance in Colorado is difficult to find.

But this is only telling part of the story. Because there are a lot of factors that go into creating monthly premiums for drivers, and everyone will have different variables that affect their rates. Understanding the averages of your state, however, is still a helpful tool for keeping your premiums low.

When looking at car insurance in Colorado, averages can help you see where you fall. If you are paying a lot more than the average, you may either have negative factors, such as a bad driving record, affecting your coverage, or you could simply be paying too much for coverage.

On the other hand, if your premiums are too low, this could also point to a lack of coverage. Yes, having a lower rate is ideal, but if it’s too low, you may find that you are exposed to risks that will cost you more out of pocket in the long run.

This is why it’s important to review your coverage at least once every 6 to 12 months. By doing so, you can assess whether or not you have the right level of protection for your risk tolerance as a driver. Here at Freedom Insurance Group, we help drivers assess risks, find the right level of coverage, and enroll for the lowest rate on the market.

Is Car Insurance Required in Colorado?

Yes, the state of Colorado requires all drivers to carry a minimum amount of liability coverage to remain legal while operating on its roads. Failing to do so can result in points against your license, expensive fines, the suspension of your license, and even community service.

But that’s only the legal ramifications of driving without the right coverage. Drivers who don’t maintain their car insurance are also opening themselves up to a variety of legal issues due to lawsuits from another party.

Car insurance is there to act as a buffer between you and another party should you cause them to suffer a loss. Accidents happen but the aftermath still requires rights to be righted and losses to be restored. Without coverage, this means you’ll be personally responsible for restoring losses out of your own pocket.

Beyond legal fees, you’ve now put your personal finances at risk if you don’t have liability coverage. The risk of driving without coverage is far too great when affordable coverage can be found.

Sometimes called SR22 insurance, this proof of coverage shows that you’ve fulfilled your financial obligation as a motorist by maintaining valid liability coverage. All drivers in Colorado should maintain at least the state minimum when on the road.

Car Insurance Colorado Requirements

Drivers have plenty of options for protecting their vehicles, but liability coverage is non-negotiable. As we’ve seen, Colorado car insurance laws require mandatory automobile insurance while on the road. Here’s the minimum amount of liability coverage you’ll need to stay legal:

• $25,000 for bodily injury or death to any one person per accident
• $50,000 for bodily injury or death to all persons per accident
• $15,000 for property damage per accident

These minimums help protect drivers on the road from losses pertaining to both bodily injury and property damage. But it’s important to note, that these minimums may not be enough to cover losses during a major accident.

The cost of both healthcare and repairing vehicles continues to rise. As an “at-fault” state, drivers in Colorado that fail to maintain enough coverage may still be liable for restoring losses beyond their policies.

It’s also important to note that liability coverage is coverage for only restoring another driver’s vehicle. So, if you’re carrying only liability coverage, are at fault, and total your vehicle, you’ll need to restore your own vehicle through your own means.

Cheapest Car Insurance in Colorado for Teen Drivers

Age plays a major part in how much auto insurance in Colorado costs. Teens have the highest rates because they are riskier to insure, but there are plenty of options to help you find the cheapest coverage for your youngest drivers:

• First and foremost is driving safely. Good drivers are rewarded in multiple ways, especially when they’re younger.
• Discounts exist and they can help your household keep premiums down. From good student discounts to multi-vehicle policies, you have options to save.
• Comparing rates and shopping among different carriers can help you pinpoint the lowest cost for the protection you need.

Households with teen drivers have unique needs. You’re looking to insure a driver that may need more protection all while facing steep rates. Working with an auto insurance agent can help you find the risks you face, protect adequately,  maximize your discounts, and enroll at the lowest price possible.

Why Is Car Insurance So Expensive in Colorado?

Unfortunately, several factors are creating less than favorable conditions for drivers and how much car insurance costs in Colorado. Rates are going up and there are several reasons for it.

Some of these factors include statewide and economic trends that are harder to control, if not impossible, on an individual level. For example, inflation, natural disasters, population density, etc.

Other factors, such as your age, marital status, or driving record, are well in your control and affect the amount you’ll pay for your premiums. Together, these factors are all affecting the amount you pay for coverage, but understanding them may help you save.

Remember, you can’t control everything, but when it comes to those that you can, taking the right steps can help keep more money in your pockets. Here are some of the top factors auto insurance companies are assessing when creating your premium:

Age

While there may be many factors that determine the price you pay for car insurance in Colorado, none of them are as prevalent as your age. Younger drivers have less experience and are statistically more likely to be in an automobile accident. Therefore, you can expect them to pay higher rates. Additionally, senior drivers may also find themselves with elevated rates for similar reasons.

Gender

Insurance companies assess statistics, numbers, and figures when looking at risk factors. From their point of view, men are riskier and are paying more to receive insurance, in general. This isn’t absolute and in some age groups, women are actually risker to insure, but either way, this factor will come into play when setting your rates.

Marital Status

If you’re looking for a sign to pop the question, this may be it. Married couples receive lower car insurance rates as they are seen to pose less of a risk. The single life has its perks, but lower car insurance premiums aren’t one of them.

Driving Record

One of the easiest ways to avoid cheap car insurance in Colorado is to have a sketchy driving record. Safer drivers make the roads better for everyone and failing to drive accordingly means you’re looked at as a higher risk. The fewer hiccups on your record, the lower your bill will be.

The Amount of Coverage You Enroll In

If you purchase more coverage, you can expect your rates to go up as well, however, the higher premiums you incur may be far less than you’d pay if you are improperly covered. The best thing all drivers can do is speak with an insurance agent, find an appropriate level of coverage for their risks, and enroll in protection that makes sense for their needs.

Claims History

Your insurance rate will go up if you submit claims to your provider because they will see you as a higher risk in the future. Particularly if you caused the accident. If you are able to, it’s always a good idea to avoid claims as if they aren’t completely necessary. Otherwise, drivers with excessive claims may find themselves dropped as a client and/or paying higher premiums as a result.

The Vehicle You’re Insuring

Value, safety features, and other factors all come into play here. The year, make, and model of your vehicle are going to affect how much you spend each month on auto insurance. However, you may be pleased to know that your paint color won’t. It’s a myth. Go ahead and paint it red if that’s how you like it.

Your Usage and Location

Drivers that spend more time on the road are at a higher risk of being in an accident. This unfortunately means that Colorado car insurance ends up being higher as a result. This can also hurt drivers in the number of discounts that are available.

It’s also important to point out that where you drive is also a variable. Just as different states have different average premiums, so too will cities and zip codes. For example, drivers living in cities will likely pay more due to the increased chance of an accident or incident involving crime. Those living in areas exposed to harsh weather will also experience inflated premiums.

Deductibles

Certain auto insurance coverages come with deductibles, such as comprehensive or collision insurance. Generally speaking, the higher your deductible, the lower your monthly premium will be. But remember, that means if you need to submit a claim, you’ll have to come up with more money upfront before your policy kicks in for reimbursing a loss.

Your Insurance Score

Car insurance companies look at what is known as your “insurance score”, a collection of various factors brands will look at, including your credit score. If you have a higher overall score, your rates will decrease, and vice versa.

Colorado Auto Insurance Coverage Options

Drivers in Colorado must have liability coverage, but there are several other types of auto insurance available. Different coverages protect in different ways and if you suffer a loss without the proper coverage in place, you’ll be left paying out of pocket.

Ideally, you want to have an adequate level of coverage to help you avoid restoring major losses from your own pockets. Failing to do so can put drivers in uncomfortable financial predicaments. Here’s a breakdown of the most common options for car insurance in Colorado:

Liability Coverage

Featuring protection for both bodily injury and property damage, liability insurance is mandatory for all drivers. If you are in an accident and at fault, your policy is there to help restore the loss that has occurred to the other party.

Comprehensive Coverage

When your vehicle is damaged due to a non-accident incident, you’ll need the right coverage to restore the loss. Some examples include damage from vandalism or weather-related damage. Comprehensive coverage is a policy that helps restore such losses.

Note: This coverage comes with a deductible that must be paid before you’ll receive reimbursement. Most commonly, these deductibles range between $500 and $1,500.

Collision Coverage

Again, liability coverage is protection you enroll in but restores the losses to other drivers. If you’re looking to restore your own vehicle’s damage, you’ll need to enroll in collision coverage. Regardless of fault, a collision policy will help you restore damage to your vehicle after an accident, but just like comprehensive coverage, there is also a deductible typically ranging between $200 and $1,000.

Note: Drivers looking to get more protection for less will often enroll in Full Coverage insurance. This is simply a combination of liability, comprehensive, and collision coverages into one, allowing you to receive a discounted rate and a wider range of protection.

Medical Payments Coverage

Medical Payments Coverage helps you cover basic medical bills in the aftermath of an accident. This can include your medical expenses, the expenses of your passengers, or those of your household while traveling in another vehicle. You may even be able to submit a claim if you are injured after an accident while walking or riding a bike.

Uninsured/Underinsured Motorist Coverage (UI/UIM)

If you are involved in an accident but not at fault and the other party doesn’t have enough coverage, you’ll either have to take legal action or restore it on your own. Both can be a time-consuming, uncomfortable process.

Furthermore, because many drivers don’t hold up their end of the bargain and fail to maintain proper coverage if you’re in an accident with someone uninsured, you’ll find yourself in a similar situation.

Fortunately, there are protections for drivers in Colorado that can help mitigate these risks. UI/UIM is a great option to mitigate these risks and can even help you restore your loss in the event you are a victim of a hit-and-run.

Gap Insurance

After an accident, if your vehicle is totaled but you still owe on its note, you’ll have to pay out of pocket for a car that is no longer in use. This coverage allows you to receive a reimbursement that equates to the difference between how much you still owe and your vehicle’s actual cash value (ACV).

Accident Forgiveness

The availability of Accident Forgiveness will vary from brand to brand, but some carriers provide coverage that won’t raise your rates if you cause an accident. For drivers that have a less-than-ideal driving record, this can be a great option to help maintain affordable rates, however, if you have too many claims, you may still be dropped as a client.

Additional Coverage Options

While the coverages above represent some of the most common protection options available, there are still other ways drivers may need to be protected that are more specialized. Some of these include:

• Coverage for rental car fees
• Roadside assistance
• Rideshare insurance

These additions can be helpful but are typically used on a case-by-case basis. Speaking with a licensed auto insurance agent can help you better understand your risks and which coverages work for your protection.

Car Insurance Colorado vs California

California transplants are among the most common in terms of residents of another state moving into Colorado. So, it’s natural that drivers heading from The Golden State have questions about car insurance in Colorado. Here are some similarities and differences:

• Both CA and CO require auto insurance policies, specifically, liability coverage. In Colorado, you’ll need to carry a bit more, however.
• CO car insurance is actually cheaper than it is in Cali when looking at minimum coverage. While you’ll still pay more than the national average, for many, auto insurance policies are cheaper here.
• But when it comes to full coverage, the opposite is true. You’ll likely pay more for coverage in Colorado than you would in California.

Of course, nothing changes with the way drivers should approach their coverage. There are a ton of factors at play here and the only way to truly find the best car insurance in Colorado is by comparing rates among many different carriers.

Is Car Insurance Cheaper in Colorado Than Florida?

In general, you’ll find that car insurance in Colorado is cheaper than in Florida. While drivers in The Centennial State face higher rates than the national average, Florida is consistently ranked as a top 10 state in terms of car insurance premiums.

Florida brings in more transplants to Colorado than almost any other state, similar to California. But drivers will be relieved to learn that they can enroll in coverage at what is usually a lower rate.

However, the fact remains that premiums will vary from person to person, and even if you are receiving protection for less, you’ll still want to assess your risks, shop around, and compare premiums among brands to ensure you’re getting the best deal.

Can You Get Car Insurance Without a License in Colorado?

Yes, you can enroll in car insurance in Colorado without a license, but that doesn’t mean there aren’t any caveats. You may be listed as a high-risk client by your insurer, receive higher rates because of it, and face a variety of complications in the process. Simply put, having a license may not be necessary, but it makes life easier for everyone.

Which Car Insurance Company Is Cheapest in Colorado?

The cheapest car insurance company in Colorado is going to change from driver to driver. This is because there are common factors all carriers look at, and each driver’s personal factors are unique to them.

Furthermore, each brand is going to assess these factors differently. For example, two brands may look at your location and marital status, but because “Brand A” weighs these factors heavier than “Brand B” in terms of risk, you’ll notice that even the same coverage will have differing premiums.

All companies are looking to determine how much risk you bring on when they enroll you as a client, and the more risk you have, the higher your premium will be. But because each company has its own methods and algorithms for doing so, prices vary.

This is why it’s always recommended to shop around and compare car insurance before enrolling in coverage. Comparison shopping can be a time-consuming endeavor, however, doing so allows you to avoid compromising on coverage and overpaying for protection.

How To Find the Cheapest Car Insurance in Colorado

The best car insurance in Colorado is not only going to be the cheapest, but it will also keep you properly insured. Additionally, you’ll have peace of mind knowing you’re enrolled with a company that is financially sound and there when you need them.

To find the cheapest car insurance in Colorado, you’re going to need to search among top-rated providers for the policies that fit your needs. We understand that this can take time, which is why the team at Freedom Insurance Group is here to help.

By partnering with over 25 top-rated insurance carriers, we are able to take the coverage you need, apply discounts, create bundles with your home insurance, and compare the premiums you’ll face among reliable carriers.

This means that you find the right coverage quicker and pinpoint the lowest price for your protection. Since 2005, we’ve helped drivers save 40% by switching and we can help you too. Call us today to speak with an agent or get a free, accurate auto insurance quote today!

Car insurance in Colorado is necessary and finding the cheapest doesn’t have to be a hassle. From finding the right policy to submitting claims and more, we’re here to help you every step of the way.