Nestled in the heart of the Rocky Mountains, Colorado is not only renowned for its breathtaking landscapes but also its diverse and ever-changing weather conditions. With countless scenic highways, bustling city streets, and adventurous off-road trails, having the right car insurance in the Centennial State is essential. In this comprehensive guide, we’ll explore everything you need to know about car insurance quotes in Colorado – from understanding the local insurance landscape to finding the best coverage that suits your needs and budget.
Table of Contents
Understanding Car Insurance in Colorado
It can be difficult to understand auto coverage and how insurance operates, particularly following an accident. It’s critical to comprehend auto insurance and the variations among the different coverage options. It will assist you in determining what elements of your personal policy are necessary. You, your loved ones, your passengers, and other motorists will all be better protected if you do this.
The Basics of Car Insurance
Unexpected events can lead to accidents. The extent and reason of the collision may require you to foot the bill for expensive medical care and auto repairs. You can lose your belongings and savings if you don’t have enough auto insurance. Getting auto insurance is crucial even though it raises your monthly costs since it can save you from becoming bankrupt.
An agreement between an insurance provider and a policyholder is known as an auto insurance policy. The policyholder agrees to pay a particular premium, and the insurance provider commits to compensate for losses listed in the policy.
Car Insurance Requirements in Colorado
Most states mandate by law that you carry specific kinds of coverage with minimum liability limits. Your bodily injury liability limits should be at least $100,000 per person and $300,000 per event, according to several insurance companies.
How much insurance do I need? is probably the question you’re asking yourself right now. According to Colorado law, auto insurance policies must include the following:
Bodily injury liability (BI) coverage covers you if you cause an accident in which someone else is hurt or killed. Many financial experts recommend carrying at least $100,000 per person and $300,000 per occurance – commonly expressed as “100/300.” Consider what assets you have to protect and what you can afford when deciding how much to purchase.
- Colorado requires limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury—commonly expressed as “25/50.”
Property damage liability (PD) coverage covers you when you damage someone else’s property. Usually it’s someone else’s car, but it could apply to buildings, utility poles, garage doors, and other physical property. State laws determine the minimum you must purchase.
- Colorado requires a limit of $15,000 per occurence.
Uninsured/Underinsured motorist (UM/UIM) coverage covers medical and other expenses when you are hit by a driver without adequate auto insurance. You can purchase additional coverage to pay for damage to your car if hit by an uninsured motorist, but many people instead just purchase collision and comprehensive.
In Colorado, insurers are required to offer UM/UIM in the same amount as the bodily injury liability limits you select. UM/UIM can be waived only if it’s rejected in writing. You may select limits starting at $25,000/$50,000 (same as Colorado’s minimum liability limits) on up to the same amount of liability coverage you purchase on your own policy. Most people choose to carry it because it can cover your economic damages such as medical bills, as well as some non-economic damages should the person who hit you be uninsured or underinsured.
Colorado’s State Legislature passed a law, effective January 1, 2008, requiring an expansion of UM/UIM, so it’s a good idea to review your options on this particular coverage. Some people won’t see any premium or coverage changes, but it can vary for individuals and companies, so bottom line—ask how it affects your policy and decide what is the best protection for you.
Medical payments coverage (Med Pay, or MPC) As of January 1, 2009, Colorado insurers are required to offer you $5,000 in coverage. You must opt out or the coverage and premium will automatically be added—whether you’re buying a new policy or renewing one. You can choose not to buy med pay or purchase a different amount. But, if you don’t want it you must reject it in writing or in the same way you buy insurance, for example, over the Internet or telephone. The new law also requires your insurer to hold $5,000 of your medical payments coverage for 30 days to pay for trauma bills first.
Collision coverage covers damage to your car if you run into another car, a brick wall, a fire hydrant, or other object. This coverage is not required by law, though your bank may require it if you have an auto loan. You may choose a deductible on this coverage—what you must first pay out-of-pocket for a claim before the insurance kicks in.
Comprehensive coverage covers you in case your car is stolen or damaged in ways that don’t involve a collision. Covered risks include hail, fire, theft, flood, earthquake, explosion, falling objects, and encounters with wildlife, such as deer. Comprehensive is optional coverage, though your bank may require it if you have an auto loan. You may choose a deductible on this coverage.
If you can afford more insurance, carrying more than the mandatory minimum requirement is recommended. Think about the amount of insurance you’ll need when you need it the most. Families should sit down with their insurance agent or company representative to determine the right amount for each individual and family.
The Importance of Car Insurance in Colorado
Car insurance is an essential form of protection that will keep you covered if your car is stolen, damaged in an accident, or totaled out. Furthermore, it covers liability in case someone else is injured as a result of your actions in a collision and their property is damaged as a result.
Loveland residents should understand that car insurance rates can differ dramatically based on factors like their age, gender and driving record. Drivers with no history of violations or accidents could save money; those with multiple violations will pay higher premiums.
Car insurance rates in Loveland can be costly, but there are ways you can lower them and find a policy at an affordable cost. Comparing different auto insurers’ offerings will enable you to secure coverage without breaking your budget.
Read Also: Cheap Auto Insurance
Cost of auto insurance in Loveland depends on several factors, such as driver age, gender and credit score. As well as comparing quotes, drivers can take steps to improve their credit score in order to secure lower premiums.
As drivers who regularly pay their bills on time and avoid debt can increase their credit scores, this could potentially result in lower car insurance premiums. Insurance providers use credit scoring models to gauge risk levels of drivers and set premium rates accordingly.
Uninsured drivers are another factor that can increase car insurance premiums in Loveland. With some of the highest uninsured driver rates in the country, Loveland makes it more costly for responsible drivers to acquire adequate protection.
Colorado drivers can lower the costs of car insurance by maintaining a clean driving record and paying their premiums promptly. They should also shop around for the cheapest auto insurance rates in their area and make use of any discounts that may be available.
Factors Influencing Car Insurance Rates in Colorado
Since 2011, Colorado has seen a 54.2 percent increase in car insurance prices, making it the third most expensive state in the country overall.
Rates for auto insurance are determined by insurance companies using a variety of criteria, including your driving record and region.
1. Age
Colorado has seen a steep increase in car insurance premiums over the last several years due to an unprecedented spike in claims made by motorists. In an effort to reduce these expenses, the government is pushing for legislation that would reduce lawsuit awards. This will help relieve insurers of having to pay out more in claims than what they are making in premiums.
However, that doesn’t guarantee lower premiums. It is still wise to ensure your policy offers all the necessary features at a price you can manage. One feature that’s essential to include in your Colorado car insurance is medical payment coverage. This ensures you won’t be financially strained should an accident happen.
When making a vehicle purchase, collision coverage should be taken into account. Although not required by law, many drivers opt to include it in their policies.
If you don’t currently have this option, it is imperative to add it immediately. Doing so will safeguard you in case of an accident and keep your vehicle secure.
Finally, make sure that you carry liability coverage. This will cover any damage or injuries caused to another person’s property as well as your own.
By taking these simple steps, you can help save money on your Colorado auto insurance policy. By comparing quotes from different companies and taking advantage of discounts like multi-policy or safe driver incentives, you are sure to find an affordable policy that meets all of your needs.
2. Credit
If you’re a driver in Colorado, your credit score has an impact on how much you pay for car insurance. Insurance companies use your credit score to estimate the likelihood that you will file a claim; the lower it is, the higher your premiums will be.
Insurers also take into account your driving habits when setting premiums for car insurance. Good drivers with a clean record typically pay less than bad drivers since they tend to be more careful behind the wheel and rarely make claims.
Conversely, drivers with a poor driving record or recent speeding tickets tend to pay more for their auto insurance due to being considered high-risk drivers. One way to reduce your Colorado car insurance costs is to avoid getting tickets. Traffic violations can significantly raise your rates.
Your age and location are other important factors that could influence the cost of insurance. If you live in a densely populated area, premiums will be higher due to the additional people needing protection.
If you want to save on Colorado car insurance, take the time to compare quotes from multiple companies and consider bundling your policies with one provider in order to reduce your rate.
Your vehicle type can also have an effect on your premiums. A safer older model may cost less in the long run as repairs are fewer.
Another way to obtain cheap car insurance in Colorado is by taking a defensive driving course. Teenagers who successfully complete such an educational program may qualify for discounts on their insurance premiums. Furthermore, installing anti-theft devices can save you money as well.
3. Driving record
If you reside in Denver or Fort Collins, Colorado, your insurance rates will be higher than those found elsewhere in the state due to its dense population, congested roads, and higher accident and auto theft rates.
A clean driving record can save you money, especially if there have been no recent accidents or tickets. On the contrary, a poor record can make it difficult to find an affordable policy and keep premiums low.
According to the National Highway Traffic Safety Administration (NHTSA), drivers with a clean record typically pay $2,858 less in car insurance costs than those with an at-fault accident or other recent infractions on their record. So if you’ve had any serious infractions on your record, take steps to repair them and get back on the road safely.
Your credit score plays a significant role in determining your car insurance premiums in Colorado. An excellent credit score will save you money since it indicates you pose less of a risk to insurers.
However, a poor credit score can increase your car insurance rates as it indicates you’re more risky behind the wheel. If you’ve had any serious infractions, working with an independent car insurance agent to improve your credit and lower rates is recommended.
Another factor that may influence your rates is the type of vehicle you drive. Generally, higher-end models cost more to insure than their more affordable counterparts.
4. Accidents
Colorado is a stunning place to drive and explore, but unfortunately not immune from accidents. Whether you’re driving down the highway or crossing mountains, it can be easy to get into an accident that causes serious injuries, property damage, and even death. Don’t risk getting into one!
Fortunately, there are ways to reduce your chances of getting in an accident and lower insurance costs. Drivers with good records typically enjoy lower premiums than those with poor record. You can also shop around for the best auto insurance rates in Colorado by comparing quotes from multiple insurers.
Another factor that may affect the cost of your car insurance is where you live. Some areas in Colorado are more vulnerable to accidents than others, making insurance more expensive in those locations. Furthermore, the value of your vehicle also plays a role in determining how much you pay for coverage.
For instance, a luxury vehicle may cost more to insure than its basic counterpart. Furthermore, you can take advantage of discounts for safe drivers, multi-policy discounts and other ways to save on insurance in Colorado.
Colorado law requires all drivers to carry a minimum amount of liability insurance. This coverage pays for injuries and damages caused by an accident, regardless of who is at fault. The state requires at least $25,000 per person and $50,000 per accident for bodily injury claims and $15,000 in property damage claims. Moreover, medical payments coverage is mandatory under Colorado law and can cover the first $5,000 worth of medical bills regardless of who caused it – up to $5,000 total coverage!
5. Hail
Colorado is known for its stunning summers and endless outdoor activities, but this also means the state can experience hailstorms that cause extensive property damage. If you own a home here, be prepared so that your insurance company will pay out on the claim if one occurs.
Unfortunately, many insurance companies are unjust to claimants and take advantage of them. Therefore, hiring an experienced attorney who understands Colorado law and hail damage claims is highly recommended. A knowledgeable lawyer can help ensure you receive the funds necessary for repairs to your home or business.
One of the primary reasons Colorado car insurance is so costly is due to an increasing number of uninsured drivers. This poses a major problem since it increases the likelihood of an accident and thus raises premiums for those who do have coverage.
Drivers’ rates can also be affected by their age and credit score. Those under 25 or with poor credit will typically face higher expenses than those with better scores.
Auto repair costs are a significant component of car insurance in Colorado, so it’s essential to keep your vehicle in excellent condition. To do this, repair any brakes and tires as soon as possible.
Despite these factors, there are ways to reduce your insurance costs. Some of them include maintaining a clean driving record, being mindful of deductibles and making sure to compare prices from different Colorado insurance companies.
Colorado boasts the 18th most expensive insurance premiums among all 50 states, at an average annual full coverage policy cost of $1,435. This puts them in 18th place out of 50 when it comes to premium costs.
How to Obtain Car Insurance Quotes in Colorado
When driving in the Centennial State, make sure your Colorado auto insurance is up to date, regardless of whether you’re hitting the slopes or the office. In addition to fines of up to $500 and points added to their driving record, drivers who fail to provide proof of insurance may also be subject to license suspension and community service requirements. In order to register a car, drivers must also provide the Colorado Bureau of Motor Vehicles with proof of insurance. If you need auto insurance or want to transfer carriers, you may acquire Colorado car insurance quotes online.
Requirements
Vehicle owners driving on Colorado roads are required to have at least the following minimum limits on their insurance policy:
- Bodily injury: $25,000 per person, $50,000 per accident
- Property damage: $15,000 per accident
- Uninsured motorist: $25,000 per person, $50,000 per accident*
- Medical payments: $5,000 per accident*
*Uninsured motorist and medical payments can be rejected by signing an option form.
There are additional optional coverages that you may carry to better protect yourself and your vehicles. A GEICO insurance counselor can assist you in choosing the best Colorado auto coverage for your needs.
Licensing Process
For Colorado teens who want to get their license on their 16th birthday, they’ll need to start driver’s education before age 15. Colorado requires teens to have held a learner’s permit for at least 12 months before applying for a Colorado driver’s license. Colorado law prohibits drivers under 18 years of age from using a mobile phone while driving unless it is to contact the police, or fire department, or it is an emergency. Drivers 18 and older may not use a mobile phone for text messaging while driving unless it’s to contact the police, or fire department, or it’s an emergency.
The process for obtaining a driver’s license varies depending on the driver’s age:
- If you start at or before age 15 and 6 months, you must complete a 30-hour driver’s education course before you can apply for a learner’s permit (minimum age 15). Permit holders who have logged 50 hours of driving time, completed a 6 hour behind-the-wheel training course, and have held their permit for at least 12 months can then apply for a driver’s license.
- If you start between age 15 and 6 months up to age 16, you can either complete a 30-hour driver’s education course or a 4-hour classroom driver awareness program to be eligible for a learner’s permit. Permit holders who have logged 50 hours of driving time (plus 6 hours behind-the-wheel training if you are younger than 16 years and 6 months when you apply for a license) and who have held their permit for at least 12 months can then apply for a driver’s license.
- If you start at age 16 or 17, there are no prior driver’s education requirements before being eligible to apply for a learner’s permit. Permit holders who have logged 50 hours of driving time and who have held their permit for at least 12 months can then apply for a driver’s license. Additional 6 hours behind-the-wheel training is optional.
For the first year licensed driving is prohibited between midnight and 5 am, unless accompanied by an instructor, parent, or legal guardian.
Colorado Registration Information
If you have recently moved to Colorado, you must apply for a Colorado title and registration for your vehicle within 30 days of establishing Colorado residency. You will need to apply in the County Motor Vehicle Office in the county where you reside.
The following documents are required:
- Your out-of-state title, or current out-of-state registration.
- If you live in Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Pitkin or Weld counties, you must show proof of a Colorado vehicle emissions test.
- A vehicle identification verification form (DR 2087) was completed by a law enforcement officer, a licensed Colorado motor vehicle dealer or a licensed Colorado emissions testing station.
- A current and accurate odometer reading.
- Proof of vehicle insurance coverage (insurance card, copy of insurance policy or letter from your insurance company on the company’s letterhead paper).
- If a lien exists on an out-of-state title, the lienholder’s name and address must be provided if not shown on the out-of-state title or registration.
Once you arrive at the county Motor Vehicle office, you will need to pay the title and registration fees.
Your Colorado title will be mailed to you if there are no liens filed against the vehicle. If there is a lien, the title will be mailed to the lienholder. Please allow 4 to 6 weeks for delivery.
Comparing Car Insurance Quotes
Comparing car insurance quotes can help you identify the right coverage to meet your needs. Look beyond price and seek an insurance company that will be there if an auto mishap or accident occurs, when it matters most.
Are you getting the protection you need at the price you can afford? Consider these tips as you compare your car insurance options:
The first step is to understand what actually goes into an auto insurance rate – how insurance companies assess your risk and set your premium. Here are just a few of the factors that may influence how much you pay for car insurance:
- Your vehicle, including its make, model, age and more. Newer cars have newer technologies that aim to help make them safer, but the new technologies also may be more expensive to repair if you’re in an accident.
- The state where you live and where you park your vehicle. Your premium could be higher or lower, depending on your home state.
- Your driving record, including your claims history, traffic violations and how long you’ve been a licensed driver. If you’ve been involved in accidents over the last few years, it’s likely that your premium will be higher than someone who hasn’t had any accidents.
- The number of miles you drive annually and your driving behavior on the road.
Finally, the auto deductible you choose will also impact your premium. The lower the deductible, the less you’ll pay out of pocket if an accident occurs. On the other hand, selecting a higher deductible may lower your car insurance premium.
Before You Begin Your Research
Evaluate your insurance needs before you start comparing quotes. A good place to start is by finding out what the minimum financial responsibility limits are in your state. Selecting coverage amounts beyond the state minimums can provide you with more protection, and your insurance representative can help you get appropriate coverage for your needs.
How much additional liability coverage should you add? Do you also want comprehensive coverage and collision coverage? (This may be required if you’re leasing or financing your vehicle.) You should also think about add-ons you might need, like rental car coverage, roadside assistance and more.
Take your budget into account, too. What deductible can you afford?
Shopping for Car Insurance Quotes
Gather your current insurance policy documentation (for comparison’s sake), as well as all the personal information insurers will likely need.
You’ll likely need information about:
- The car insurance coverage you’re looking for.
- Your car’s mileage, vehicle identification number (VIN), make, model, year and security features.
- Your driver’s license number (and that of any other drivers in your household).
- Details on any accidents or moving violations that you or any household members had in the past few years. You may need to provide up to five years of accident and violation history.
Keep in mind that insurance can be complex, so talking with an independent agent or going directly through an insurer’s website can help you find the coverage solution that works for you.
Compare Level of Coverage and Cost
When evaluating your quotes, make sure you’re considering the information that suits your individual needs. Each quote should have the same deductible, limits, and coverages, and you should view them all side by side for the easiest comparison. One way to approach it is to review your auto insurance declarations page and use it as a reference to compare quotes. The declarations page typically includes key information such as the name of the person insured, address, policy period, policy limits, coverages and more.
As you consider what coverage you need, be sure to consider what other valuable benefits an insurance carrier offers in terms of good customer service and the quality of their products.
Read the fine print, too. Look at the deductibles for comprehensive/collision portions of the policies (sometimes these differ) and be sure there aren’t any additional coverages or exclusions that set the quotes apart.
Most importantly, make sure each quote contains the coverages you’re looking for at a price you can afford.
Car Insurance Providers in Colorado
Different drivers have different criteria in mind when selecting Colorado’s finest auto insurance. Somebody might require a small, local insurance, while you might choose a business with an excellent mobile app. It can also be challenging to choose which provider is the best fit for you because drivers in Colorado may appreciate different characteristics depending on where in the state they reside.
We’ve identified the best car insurance in Colorado.
American National P&C
American National P&C is the cheapest insurer in the state, with an average annual premium cost of $541. It scores highest for affordability and customer satisfaction. The insurer also offers rare coverages like spare parts coverage.
American National P&C earned our ranking as the cheapest insurer in Colorado due to its affordability and customer service reputation. While it offers fewer coverage options than its competitors, some of the coverages it offers are rarely available.
Spare parts coverage, for instance, rewards drivers who are prepared by providing up to $1,000 to replace damaged spare parts if they are destroyed in a covered loss. Additionally, it offers collector car coverage, which covers vintage and antique vehicles.
Rental car and/or travel reimbursement coverage, which is included in the comprehensive and collision policy, covers the cost of a rental car if your car is being repaired after a covered accident. With roadside assistance, policyholders can rest easy knowing that they will be covered if they need a jump start, flat tire change, gas delivery, lockout service or tow.
Acuity
When you get full safety glass coverage from Acuity, you won’t be responsible for the comprehensive deductible in the event that your car’s windshield or windows need to be fixed or replaced. Furthermore, If your car or motorcycle is completely destroyed in a covered loss, other than a fire or theft, Acuity will pay to replace it with a brand new vehicle of a similar model. Older automobiles totaled in a covered loss are compensated at a rate of 25% more than their market value.
If you owe more on your car than it is worth, gap coverage will pay the difference between the actual value of your car and the outstanding principal balance on your loan or lease. Roadside assistance, meanwhile, covers labor costs for towing, tire changes, battery jumpstarts and other roadside emergency services.
Good customer service gives you fast and hassle-free support when you need it. Insurance providers must also be receptive to your complaints and prepared to address issues as soon as they arise. Companies that offer good customer service also provide your authorized claim payment as soon as possible
Opting for Acuity for your car insurance needs means you will pay significantly more, but this added cost comes with the knowledge that you’ll receive excellent customer service and quick claims processing.
Kemper
Kemper received a perfect score of 5 out of 5 for affordability, making it the best car insurance for drivers with new cars. While it scored relatively low in other areas, it was still our top choice for its balance of cost, customer service and coverage options.
The insurer provides new car replacement coverage, which is suitable for new cars. While the majority of insurance companies only pay actual cash value, Kemper will cover the cost of repairing or replacing your car.
Additionally, it provides gap insurance, which can cover the difference between the actual cash worth of your car and the balance owed on your loan or lease. When a customer’s vehicle breaks down, roadside assistance coverage provides 24/7 towing, jump starts, fuel deliveries, flat tire changes and lockout services.
It’s recommended that drivers of new cars purchase a policy that allows them to safeguard their new investment. A good insurance company for drivers with new cars will offer add ons for new or better ca
Discounts and Savings Opportunities
Discounts on car insurance are no myth — they do exist. From having car safety features to being a safe driver, here are eight ways you may be able to cut down on auto insurance costs.
Safe Driver Discounts
Maintaining a driving record with no at-fault accidents or traffic violations may help keep your car insurance premiums down, according to the National Association of Insurance Commissioners (NAIC). In fact, the association says safe drivers pay lower car insurance rates.
Multi-Policy Bundling
The Insurance Information Institute (III) says many insurers offer multiple-policy discounts to reward customer loyalty. For example, you may qualify for a discount if you have homeowners insurance or life insurance and car insurance with the same company. Ask your insurer about “bundling” your policies and whether it would help maximize your savings.
Vehicle Safety Features
Is your car equipped to help keep you safe from harm? The III says many insurers offer discounts for certain safety features — for example, airbags or an anti-lock brake system (ABS).
Good Student Discounts
Keeping up your grade point average may help save money. The III says insurers frequently offer discounts for young drivers with good grades. This doesn’t just apply to teenagers in high school. The NAIC says some insurers also offer discounts for full-time students up to age 25.
Low Mileage Discounts
Some companies offer discounts to drivers who drive less than the average number of miles per year. They may also offer policies where your payments are based on the number of miles you drive. If you drive less than the average driver, you may want to look into these types of discounts or policies to help you save money on insurance costs.
Don’t wait until your car insurance policy has expired to switch to a different insurer. First off, it’s not a good idea, because going without car insurance is against the law (most states require that all drivers have liability coverage). Second, some insurance companies may offer incentives for new customers who sign a new policy before their old policy expires. Additionally, some insurance companies may offer a price reduction for policy owners who pre-pay their entire policy period, instead of paying in installments.
Special Considerations for Colorado Car Insurance
Progressive Auto Insurance add-on services Like many other jurisdictions, Colorado allows you to customise and add extra protection to your auto insurance coverage. Remember that each insurance provider may have different requirements and availability for these coverages. In Colorado, some optional Progressive coverages to think about include as follows:
- Uninsured/Underinsured Motorist Coverage (UM/UIM): This coverage helps protect you if you’re involved in an accident with a driver who doesn’t have insurance or who doesn’t have enough insurance to cover the damages. It will also protect you from a hit-and-run.
- Medical Payments Coverage (MedPay): This coverage helps pay for medical expenses for you and those in your vehicle at the time of an accident, regardless of who was at fault in the accident.
- Rental Car Reimbursement: This coverage will reimburse you up to a certain amount for the cost of renting a vehicle if your car is being repaired due to a covered claim.
- Roadside Assistance/Towing Coverage: This coverage provides assistance if your car breaks down on the road, including services like towing, jump-starts, flat tire changes.
Let’s have a look at ways to save money while buying car insurance:
- Get Quotes From Different Companies And Compare Them
The best way to get affordable car insurance is by checking what other companies are providing at a similar cost. You can ask for quotes from all the insurers in your area and check their policies for a clearer picture. - Select A Higher Deductible For Your Policy
Drivers with higher car insurance deductibles are considered safe drivers as their chances of getting into an accident are less as compared to other drivers. You can increase the deductible amount in your policy to get affordable car insurance rates. - Get A Safer Parking Space
If you park your vehicle in a garage or a safe place near your house then you will be considered as a safe driver by the insurance company and you will get lower insurance rates. Drivers who have a garage get much lower rates because the chances of their car getting damaged by a natural or man-made disaster are lower. - Stick To Your Requirements
If you have an older car then you can let go of your comprehensive and collision insurance policy. The best option is to stick to the minimum required policy of your state which will be much cheaper as compared to other policies. - Add Advanced Safety Features
You can add advanced safety features like automatic seat belts, anti-lock brakes, and anti-theft locks to your car. These features increase the safety feature of the car and decrease the chances of accidents as a result you will be considered a safe driver. - Complete A Driving Improvement Course
By completing a driving improvement course you will improve your driving skills and judgment on the road. This will decrease the chances of your accidents and hence the chances of filing a claim. As a result, your insurance company will provide an affordable car insurance policy to you.
Car Insurance for Special Situations in Colorado
A person’s age, driving history and credit score can have a huge impact on how much they pay for car insurance in Colorado. Below, we compare cheap car insurance estimates for Colorado drivers in these categories.
Teen Drivers
Young drivers often pay much more for car insurance than adults. The table below shows the cheapest car insurance for young drivers in Colorado along with estimated monthly and annual costs.
Young drivers in the Centennial State can expect to pay thousands of dollars more for car insurance than older drivers. We found that Southern Farm Bureau Casualty Insurance Group provides lower rates on average for 16-year-old drivers, costing around $3,638 per year or $303 per month. The average rate estimate for a 16-year-old Colorado motorist is $8,453 per year or $704 per month.
| Cheapest Car Insurance in Colorado | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Southern Farm Bureau Casualty Insurance Company | $303 | $3,638 |
| Geico | $419 | $5,030 |
| State Farm | $434 | $5,205 |
| USAA | $520 | $6,235 |
| American Family Insurance | $607 | $7,279 |
Seniors and Retirees
As Colorado drivers gain more experience on the road, they typically see a decline in the overall costs they pay for car insurance. Car insurance costs may pick up again for drivers around 75 years old or older. The table below shows the cheapest car insurance options for adults in Colorado.
we found that 75-year-old drivers in Colorado may see a slight increase in car insurance rates due to increased risk as we age. Despite this, drivers can generally find affordable car insurance premiums through companies like Geico, which costs an average of $1,286 per year or $107 per month. The average rate estimate for 75-year-old Colorado drivers is $2,053 per year or $171 per month.
| Cheapest Car Insurance in Colorado | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Geico | $107 | $1,286 |
| USAA | $119 | $1,422 |
| State Farm | $130 | $1,563 |
| Nationwide | $147 | $1,759 |
| Southern Farm Bureau | $167 | $2,005 |
High-Risk Drivers
Along with age, your credit history and driving record will factor into the final price you pay for car insurance. The sections below provide the cheapest car insurance companies for different driving situations, such as if you have a DUI or a speeding ticket.
Getting a speeding ticket can cause your rates to go up. The average estimated rate for a driver with a speeding ticket in Colorado is $2,601 per year or $217 per month.
| Cheapest Colorado Car Insurance | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| State Farm | $145 | $1,736 |
| Southern Farm Bureau Casualty Insurance Company | $157 | $1,884 |
| Geico | $161 | $1,929 |
| USAA | $170 | $2,043 |
| Nationwide | $171 | $2,048 |
Drivers With Poor Credit
Insurers charge people with poor credit scores much higher rates on average than those with higher scores. The average estimated rate for a driver with poor credit in Colorado is $4,006 per year or $384 per month.
| Cheapest Colorado Car Insurance | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Geico | $163 | $1,952 |
| Nationwide | $200 | $2,396 |
| State Farm | $271 | $3,247 |
| USAA | $278 | $3,330 |
| Progressive | $400 | $4,801 |
Understanding Car Insurance Premiums
A car insurance premium is the amount of money you pay your auto insurance provider. Often used in reference to your car insurance bill itself, a premium is the amount you have to pay to keep your auto insurance coverage valid. Most insurers require that you pay your premium every six or 12 months, though many offer month-to-month payment plans too.
While auto insurance rates are determined using methods that vary from company to company, your auto insurance premium is generally based on personal details like the coverage you choose and the type of vehicle you drive. In exchange for paying your premium, the insurance company pays for coverages specified in your policy. The biggest examples would be collision and liability coverage.
Factors Impacting Premiums
Most providers take into account the following when setting rates for car insurance premiums:
| Factor | Impact on Car Insurance Premiums |
|---|---|
| Type of Car | The type and value of your vehicle can affect your car insurance rates. If your model of vehicle has high theft or crash rates (as do many sports cars) your insurance premium may be higher. Your vehicle’s value also determines the cost of comprehensive and collision coverage. New cars tend to be more expensive to insure than older vehicles. |
| Driving Record | If you have a poor driving record (speeding tickets, past accidents, DUI, traffic violations or other incidents) you will have higher rates for a set period of time, typically around three years after each violation. |
| Driving Habits | How often you drive can affect your premium rates. Many insurers offer usage-based discounts for drivers who don’t use their vehicles often. |
| ZIP Code | The crash and theft rates in your city can impact your premiums. Your state also matters, as each state has different insurance regulations and required minimum coverage. |
Premium Payment Options
How you pay your car insurance premium depends on your provider, but the majority of companies allow customers to pay in the following ways:
- By mailing in a check
- Online through the insurer’s website
- Online through the insurer’s smartphone app
- Automatically by setting up autopay
Paying online, you’ll have the option to enter your credit or debit card information or link your checking account for a funds transfer. If your vehicle is insured by a company that offers banking services, like USAA or State Farm, your insurance and checking account can be accessed using the same login information.
Most insurers require that you pay your premium every six or 12 months, though many offer month-to-month payment plans too. Most insurers allow you to set up automatic payments so the money is drafted out of your bank account each month and you never miss a payment. You might be able to get a premium discount if you pay your entire annual premium upfront or enroll in autopay.
Ways to Reduce Premiums
Although car insurance can be expensive, there are many ways that you may be able to lower your rate. Here are some potential options for getting a cheaper car insurance premium:
- Shop around and compare quotes
Since the price of car insurance varies by insurer and each company has its own proprietary rating algorithm, your premium may vary greatly depending on the company you choose. To find the cheapest company for your specific circumstances, you may want to compare quotes across various carriers. Most insurance professionals recommend comparing quotes for the same coverage types and limits across carriers to get the most accurate comparison.
- Apply discounts
Almost every insurance company offers discounts that might lower your premium. Some discounts are more significant than others. You may want to review the discounts each carrier offers when comparing quotes. Discounts are commonly available for being a good student, remaining claims-free, driving a car with strong safety ratings and bundling your insurance policies. You may also qualify for a discount if you pay your premium in full, enroll in paperless billing or set up autopay.
- Check your coverage
There are many different types of car insurance coverage, and the more you have, the higher your insurance premium typically is. Higher coverage limits also typically increase your premium. If price is a concern, you may want to review your policy to ensure you’re only paying for the coverage types that you need and check for duplicate coverage. For instance, you might already have roadside assistance through your credit card provider.
The Claims Process in Colorado
If you’re thinking about making a personal claim, you may want to know more about the process before you begin.
to file a claim against the State of Colorado you must submit a form to the Colorado Attorney General. To initiate the claim process, please complete the New Claim Form, print and mail it to the address listed on the form, or you may call the State Office of Risk Management at 303-866-3848 inside the Denver Metro Area, or 1-800-268-8092 outside the Denver Metro Area, to have a form mailed to you. The form should be completed and returned to the Attorney General per the instructions on the form.
Claim Investigation
The State Office of Risk Management manages the claims filed with the Attorney General against the State of Colorado. Risk Management has posted the Attorney General’s Notice of Claim Form on the Liability Claims page. The claim form can only be submitted via the mail or by dropping it off at the Attorney General’s Office.
Please note that the claim can not be filed with the AG’s office by email, fax, or by phone call leaving the information. If you need the form to be mailed or emailed to you so you can fill it in and file it, you can call 303-866-3848 or 800-268-8092 and provide either your mailing address or the email address to which the form can be sent to. Please make sure to spell out the email address or any names in the information being provided for response.
Depending on the complexity of your claim, it usually takes 6 – 8 weeks to provide a decision on your claim once your claim is processed and assigned to an adjuster.
Appeals and Disputes
There is no formal appeal process. If you believe the Adjuster’s decision is in error based on the facts of your loss, contact the State Office of Risk Management. Your claim will be reviewed by Risk Management staff and in some circumstances by the Attorney General’s Office to ensure the Adjuster investigated the claim properly.
Car Insurance Regulations and Laws in Colorado
Colorado law requires all drivers to carry minimum levels of car insurance. Motorists caught driving without auto insurance can face fines and the loss of their driving privileges. But legal requirements aside, buying car insurance makes good financial sense, because a well-rounded policy can help protect your finances if you cause an accident.
Whether you are a current Colorado driver or are planning a move to the state, knowing the regulations around car insurance is helpful. Here are the Colorado car insurance laws:
- Minimum coverage: State law requires all Colorado drivers to carry a minimum of $25,000 in bodily injury liability coverage per person and $50,000 per accident. Motorists must also carry $15,000 in property damage liability coverage per accident. You may see these coverage levels expressed as 25/50/15.
- Proof of insurance: Drivers in Colorado must also carry proof of insurance in their vehicles and present it when requested by law enforcement.
- Vehicle registration: To register a car with the Colorado Department of Motor Vehicles, the vehicle owner must provide proof of insurance.
- Self-insurance law: Colorado residents who own more than 25 cars registered in their names can qualify for self-insurance. Candidates can apply for a certificate of self‑insurance from the Colorado State Insurance Commissioner.
In Colorado, driving without car insurance is illegal, but data shows that 16.3% of Colorado drivers are uninsured. If you get caught driving without insurance, or without the required level of coverage, be prepared to face steep penalties.
Drivers caught without insurance could face a $500 fine for the first offense, and their license may be suspended until they can provide proof of insurance. For a second offense, the fine increases to a minimum of $1,000 and a four-month license suspension.
After three or more offenses, drivers will pay a minimum fine of $1,000 and their license can be suspended for eight months. Depending on the circumstances, some drivers must also perform up to 40 hours of community service, in addition to the fine and license suspension.
Colorado drivers who get their license suspended may be required to obtain an SR-22 form to get their license reinstated. Insurance companies that specialize in high-risk auto insurance typically offer SR-22 certificates.
Car Insurance in Colorado: Frequently Asked Questions (FAQs)
Q: Why do you need my social security number to give me a quote?
A: We need your social security number and other personal information to obtain the most accurate rate we can for you, as rates are partially based on credit scoring. In addition, we aim to make certain we’re obtaining every discount possible for you. Your information is protected and kept private and never used for any purpose other than your insurance quote. If you decide our coverage isn’t right for you, we permanently destroy all of your information.
Q: How are glass claims settled on a personal automobile policy?
A: If you have comprehensive coverage on your vehicle you have coverage for glass repairs and replacements. If your glass can be repaired, your comprehensive deductible is waived. If your glass needs replaced, your comprehensive deductible applies.
Q: I am renting a car. Do I need to purchase insurance from the rental car company?
A: If the car is being used for your personal use, coverage will extend from the broadest covered vehicle on your personal auto policy, including comprehensive and collision, subject to the deductible for each of these coverages. This applies to any territory within the US, Canada, and Puerto Rico. Be aware that, depending on your insurance company, you may be responsible for loss of use to the rental vehicle. Loss of use occurs when the rental car is disabled in an auto accident and the rental car company charges the user for lost revenue as a result of not being able to rent the vehicle while repairs are being made. It’s important to check with your insurance company to determine if this coverage is provided in your policy contract. If it is not, many rental car companies offer this coverage for a fee.
Q: Can my friend or family member drive my vehicle?
A: As long as the individual is a licensed driver, not excluded under the policy contract, and has the permission of the named insured they can use the vehicle.
Q: Can I pay my insurance premiums with a credit card?
A: Yes, many companies take credit card payments, but not all. For those that do, you can call the agency to make a credit card payment or contact the insurance company directly to make payment.
Conclusion: Navigating the Colorado Car Insurance Landscape
In conclusion, navigating the car insurance landscape in Colorado is a crucial aspect of responsible driving and financial security. By understanding the requirements, factors affecting premiums, and the array of coverage options available, you can make informed decisions that ensure you are well-protected on the roads of the Centennial State. Whether you’re a seasoned driver or a new resident, this guide equips you with the knowledge you need to secure the right car insurance for your unique situation in the scenic and dynamic state of Colorado.
