The cheapest car insurance companies in Colorado are GEICO, State Farm, and Grange. Colorado drivers can save up to $2,542 per year on car insurance just by shopping around and comparing quotes.
Colorado isn’t the most expensive state in the country for car insurance, but it’s not the cheapest, either. The state has averaged 70,000 to 80,000 new residents per year for the past decade, resulting in several densely populated cities with more drivers, accidents, and claims. Colorado also saw a spike in drugged driving after it legalized marijuana. Factors like these drive up the cost of insurance overall.
Colorado drivers pay a little more than the national average for car insurance. State minimum coverage averages about $725 per year, versus the national average of $716. Similarly, full coverage averages about $2,101 per year in Colorado, compared to the national average of $1,997. Many Colorado drivers can save as much as $2,542 per year, or even more, just by shopping around and going with one of the cheapest quoted rates. The state ranked 31st in our cheap car insurance study as a result.
Even though the cost of car insurance is usually reasonable in Colorado, drivers who shop around for coverage can still save big. With that in mind, WalletHub analyzed quotes for different driver profiles and zip codes across Colorado to identify the cheapest car insurance companies in Colorado. You can check out our recommendations below, as well as compare the cheapest options to the best overall car insurance companies in Colorado to make sure you find the right fit for your particular needs.
Cheapest Insurance Rates by Category
Cheap for Good Drivers
Cheap for Full Coverage
Cheap for Speeding Ticket
Cheap for One At-Fault Accident
Cheap for Poor Credit
Cheap for Young Drivers
Cheap for Old Drivers
Cheap for Drivers with a DUI
Cheap for Married Drivers
Cheapest Car Insurance in Colorado for Good Drivers
GEICO has the cheapest car insurance for most good drivers in Colorado. Drivers who have never had an accident or received a citation are considered good drivers by insurers and pay less for insurance than drivers with bad records. In addition to low rates, good drivers can often qualify for additional discounts from their insurance company.
Cheapest Car Insurance in Colorado for Full Coverage
Full coverage refers to a policy that goes beyond the minimum state requirements. Because full coverage protects you in more situations, it costs more than minimum coverage.
After a speeding ticket, most drivers will see their insurance rates go up for 3-5 years. It’s important to keep in mind that each insurance company calculates rates differently, so you should always get multiple quotes in order to make sure that you get the best deal.
Cheapest Car Insurance in Colorado for Drivers with One At-Fault Accident
One at-fault accident will usually affect your insurance negatively for 3-5 years as insurers will consider you high-risk. Because of your higher rates, it is even more important to comparison shop.
Cheapest Car Insurance in Colorado for Drivers with Poor Credit
A low credit score often flags drivers as higher risk, so insurers will usually charge them more for coverage. However, since insurers use different formulas to calculate premiums, poor credit might affect your rates more with one company than another. Because each insurance company treats credit differently, it pays to compare quotes.
Cheapest Car Insurance in Colorado for Young Drivers
Young, inexperienced drivers pay more for car insurance because they have yet to prove themselves responsible behind the wheel. Young drivers are also statistically more likely to get into an accident than middle-aged drivers. As a result, most drivers will see their rates drop as they age.
Cheapest Car Insurance in Colorado for Older Drivers
Although mature drivers pay less for car insurance than teens, older drivers start to see their rates go up as they enter their senior years. Comparing car insurance rates can save older drivers hundreds of dollars a year.
Cheapest Car Insurance in Colorado for Drivers with a DUI
Drivers who have a DUI on their record typically experience much higher rates than drivers with a clean driving record or people with a history of less severe violations. A DUI usually affects your insurance rates for 3-10 years, but the violation itself may stay on your driving record for much longer than that.
To identify the cheapest post-DUI insurance companies, WalletHub compared rates for a 45-year-old, single man, with minimum coverage, one DUI, and good credit across major insurers.
Cheapest Car Insurance in Colorado for Married Drivers
Married drivers typically enjoy cheaper car insurance rates than drivers who are single. Auto insurance companies generally view drivers who are married as more responsible and less of a risk to insure. To help married drivers further reduce their insurance costs, WalletHub compared major insurance companies’ rates for a 45-year-old, married man with minimum coverage, a clean driving record, and good credit.
The table above reflects the average annual cost of car insurance in Colorado’s largest cities and towns.
Factors That Affect Car Insurance Premiums in Colorado
Recap: Cheapest Auto Insurance Companies in Colorado
The cheapest car insurance company in Colorado is GEICO, which charges an average of $64 per month for state-minimum coverage. In addition to being the cheapest auto insurer for Coloradoans overall, it is the cheapest option for a number of specific categories, such as full coverage and insurance for good drivers.
For your convenience, we’ve summarized the cheapest companies overall below.
6 Tips for How to Get Cheap Car Insurance in Colorado
1. Compare quotes from both national and regional insurers
Don’t forget to include local insurance companies in your search for cheap car insurance. In Colorado, regional insurers like The Hartford and Safeco might have lower rates than national companies like State Farm, Allstate, and American Family and have comparable customer satisfaction ratings.
2. Know the factors affecting insurance in Colorado
Everyone knows that your driving habits and claims history affect how much you pay for car insurance. But in Colorado, companies can also consider your age, gender, credit history, marital status, and more when setting premiums. The car you drive, your annual mileage, and even some factors beyond your control all impact the price of insurance.
3. Choose coverage that is right for you
You need liability insurance to pay for the other driver’s damages if you’re at fault in an accident in Colorado. Collision and comprehensive coverage, on the other hand, are optional and may be unnecessary if you own an older car. Usage-based insurance might be a better fit than a standard policy for low-mileage drivers, and going with a higher deductible or lower coverage limits costs less, too.
Don’t skimp on the coverage you need, but do make informed choices. That way, you won’t end up paying for more car insurance than you need.
4. Search for discounts
Top car insurance companies in Colorado have a variety of discounts, so almost anyone can find ways to save. You may be able to get a discount if you’re a student, veteran, good driver, homeowner, willing to go paperless, and more.
5. Stay in less expensive zip codes
Car insurance prices can vary a lot based on zip code in Colorado. On average, drivers in the most expensive parts of Colorado spend over $800 more per year on full coverage car insurance than those living in the least expensive areas.
6. Maintain coverage
You’ll see higher rates if you let your insurance lapse, even if you don’t own a car. Colorado drivers who don’t maintain continuous coverage pay an average of 15% more than those with five or more years of insurance history.
Video: Cheap Auto Insurance in Colorado
Methodology for Selecting the Cheapest Auto Insurance in CO
WalletHub’s analysis of cheap car insurance companies in Colorado is based on data from the Colorado DMV and Quadrant Information Services. Together with that data, WalletHub used the characteristics listed below to create 40 different driver profiles designed to identify the cheapest car insurance companies for Colorado drivers in a collection of key categories. For each profile, WalletHub compared quotes among top Colorado car insurance companies by averaging premiums from 37 zip codes that represent at least 20% of Colorado's population. Military-specific companies like USAA were only considered for the military-specific category, due to their eligibility restrictions. In some cases, they may still be the best option overall for eligible drivers.
In the table below, you can see all of the profile characteristics that were used in WalletHub’s analysis, in addition to the specific subset of characteristics that make up our Good Driver profile.
Clean, One Speeding Ticket, One At-Fault Accident, One DUI, Suspended License, Open Container, Red Light Infraction, Reckless Driving, One Not At-Fault Accident
Clean
Miles Driven Per Year
7,500 Miles, 15,000 Miles, 20,000 Miles
15,000 Miles
Coverage Level
Minimum, Standard, Full
Minimum
Discounts
None, Multi-Policy, Homeowner, Student
None
Credit Level
Poor, Good
Good
Filings
None, SR22, FR44
None
Car
Sedan, Minivan, SUV, Coupe, Truck
Sedan
Below are additional details regarding the terminology and specific characteristics of the variables in the above table:
Minimum Coverage: Coverage requirements of $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $15,000 in property damage liability, as required by Colorado's minimum coverage requirements.
Standard Coverage: Coverage levels of 50k/100k/25k of liability coverage and 50k/100k/25k of uninsured motorist coverage.
Full Coverage: Coverage levels of 100k/300k/50k of liability coverage, 100k/300k/50k of uninsured motorist coverage, and collision and comprehensive coverage with a $500 deductible.
Sedan: 2018 Toyota Camry.
Minivan: 2018 Dodge Grand Caravan.
SUV: 2018 Toyota RAV4.
Coupe: 2018 Ford Mustang.
Truck: 2018 Ford F-150.
Where driver profiles are not specified, WalletHub averaged Colorado insurance quotes across 40 different driver profiles, using the above variables. Quote information is from Quadrant Information Services and is representative only. Individual rates will be different.
Questions & Answers
Finding the cheapest car insurance in Colorado can be tough. But you’ve got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines.
Car insurance usually follows the car in Colorado. The types of car insurance that follow the car in Colorado are bodily injury liability, personal injury liability, collision, and comprehensive. You're required to carry bodily injury liability and property damage liability in Colorado.
If you let someone borrow your car and they cause an accident in Colorado, bodily injury liability insurance pays for injuries to the other driver and their passengers. Property damage liability insurance will pay for damage to the other driver's car. If the person who borrowed your car causes damage that exceeds your coverage limits, their liability policy can act as secondary coverage. But their coverage only kicks in after yours is tapped out.
You won't need to use your PIP or MedPay coverage if someone caused an accident while driving your car because PIP and MedPay follow the driver. You will have to use your collision and comprehensive insurance to pay for damage to your car, though. These optional coverage types pay for your car to be fixed no matter who was driving, but it is a claim on your policy.
It's always a risk to lend your car to someone else, because you could definitely end up filing a claim using your own insurance in Colorado. When someone borrows your car, they also borrow your insurance coverage in most cases.
The minimum SR-22 car insurance requirements in Colorado are $25,000 in bodily injury liability insurance per person ($50,000 per accident) plus $15,000 in property damage liability insurance. Drivers in Colorado will need to maintain the SR-22 coverage for 3 years. For context, an SR-22 is a form that the driver's insurance company will file with the state to prove that the driver has enough coverage to drive legally.
Non-owner car insurance provides Colorado's minimum car insurance coverage for people who don't own a car but drive often. In Colorado, non-owner insurance can pay for injuries and property damage that you cause others, but it won't pay for damage to the borrowed car or your medical expenses. A non-owner policy can also satisfy an SR-22 requirement if you need to get insurance to get your license reinstated and don't own a car.
Car insurance in Colorado is cheaper than coverage in many other states. Drivers in Colorado pay an average of $117 per month, or $1,400 per year, for minimum coverage, which is similar to what the average driver nationally pays for minimum coverage.
Car insurance rates vary based on several factors, such as your age, driving record, ZIP code, and choice of insurance company. You should compare quotes from multiple companies to find the cheapest policy that provides the...
High-risk auto insurance in Colorado will not be cheap, as premiums for high-risk policies in the state average $2,198 per year. That's about 40% more than the average cost of car insurance in Colorado overall. Nevertheless, high-risk drivers in Colorado should still be able to find suitable car insurance options after comparison shopping.
Drivers defined as high-risk typically have a history of serious driving violations and face higher rates because they are statistically more...
You need an SR-22 in Colorado for up to 3 years, meaning you must also maintain at least the minimum car insurance coverage required by Colorado law for up to 3 years. Failure to have an SR-22 for up to 3 years can result in additional penalties and reinstatement fees.
Colorado SR-22 Insurance Requirements
$25,000 in bodily injury liability insurance per person ($50,000 per accident)
Yes, you can get an SR-22 without insurance in Colorado. You can satisfy your SR-22 requirement by getting a bond from a surety company instead of getting an insurance policy. An SR-22 is documentation proving that a driver has at least the minimum coverage required by Colorado law after they've been convicted of serious violations such as driving uninsured, reckless driving, or a DUI.
If you get an insurance policy, you need to buy...
Non-owner insurance in Colorado costs $28 per month, on average, and your exact premiums will depend on factors such as your age, driving record, ZIP code, and coverage limits. A non-owner policy is cheaper than a standard minimum-coverage policy in Colorado, which costs $42 per month. Non-owner car insurance requires the same coverage types and limits as a minimum-coverage policy.
Required Car Insurance Coverage Limits in Colorado
$25,000 in bodily injury liability coverage per person
Car insurance in Colorado Springs, Colorado costs $1,696 per year, or $141 per month, on average. Car insurance in Colorado Springs is usually more expensive than car insurance in the rest of Colorado, due to factors like population density and accident rates.
Average Cost of Car Insurance in Colorado Springs, Colorado
Car insurance in Arvada, Colorado costs $1,578 per year, or $132 per month, on average. Car insurance in Arvada is usually less expensive than car insurance in the rest of Colorado, due to factors like population density and accident rates.
Car Insurance is a necessary expense if you’re a driver, but trying to find the cheapest rates can be a time-consuming process. To gain more insight about getting cheap car insurance while still having quality coverage, WalletHub posed the following questions to a panel of experts in Colorado. Click on the experts below to view their bios and answers.
What does it say about car insurance companies that so many have celebrity endorsers?
Do you think it’s fair to say that car insurance companies try to mislead customers or is it just marketing?
Is it fair for car insurance companies to consider gender or age when setting premiums?
Is it fair for car insurance companies to consider a driver’s occupation when setting premiums?
Do you think car insurance companies are fair to college students?
What advice do you have for new drivers when it comes to car insurance?
How do you think increased adoption of electric vehicles will change the car insurance landscape?
To what extent has technology disrupted the car insurance industry relative to others?
Andrew J. Sherbo Ph.D., CFP®, CSRIC® – Teaching Professor of Finance, Daniels College of Business - University of Denver Read More
Melissa Archpru Akaka Ph.D., Associate Dean for Research; Director, Master of Science in Marketing; Co-Director, Consumer Insights and Business Innovation Center; Professor, Department of Marketing, Daniels College of Business Read More
David C. Bauman Ph.D., Professor and Chair, Department of Management and Leadership, Anderson College of Business and Computing, Regis University & Author, “The Eight Sources of Power” Read More
Laurel Lane Marketing Lecturer, Metropolitan State University of Denver, College of Business, Marketing Department Read More
Connie Ostwald Ph.D., Lead Faculty in Economics, Colorado Christian University Read More
Kevin Cochrane Lecturer of Business, Davis School of Business, Colorado Mesa University Read More
