The best, cheapest car insurance in Colorado

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Best car insurance company in Colorado

In Colorado, the average premium for car insurance is $2,337 a year or $195 a month, which is the 4^th highest in the country – Louisiana was number one.

For drivers looking for cheap car insurance in Colorado, GEICO, Kemper Insurance, State Farm, Allstate and others on our list are great options, offering plenty of coverage options at affordable rates.

Our research found State Farm offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. State Farm was our top scorer and was awarded 4.4 out of 5 stars.

GEICO finished second in our rankings with a score of 4.35 stars and Auto-Owners was third at 4.3 stars.

The best car insurance companies in Colorado

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights, to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Colorado

GEICO has the cheapest average rate in the state at $1,445 a year.

While GEICO is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The data clearly shows the range of premiums for similar drivers.

In Colorado, as mentioned earlier, the cheapest policy is GEICO with an average rate of $1,445 a year. Kemper Insurance follows with an average premium of $1,878 a year or $157 a month and State Farm with premiums of $1,950 a year or $163 a month.

Farmers is the most expensive insurer with an average premium of $3,578.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Colorado

Full coverage car insurance in Colorado

As noted, the rates above are for full coverage car insurance. Residents of Colorado will often be advised to get full coverage, which includes both liability protection as well as collision and comprehensive. Liability helps pay medical and legal bills for injuries or damages you are responsible for after an accident. However, liability doesn’t cover damage to your vehicle or your injuries.

Collision will pay to repair your vehicle if it is damaged after colliding with another vehicle or object. Comprehensive covers perils such as fire, theft, flooding, vandalism and more.

You can find out more about liability, collision, and comprehensive coverage here.

Shopping for car insurance in Colorado

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Colorado by age

Car insurance rates will vary by age as reams of statistics show that teen and young adult drivers, because they are inexperienced on the road, take bigger risks and are more likely to get in anaccident and file a claim, which is why they pay more for coverage than older more experienced drivers.

GEICO turned out to be the best insurer in Colorado for drivers of all ages. The numbers show the difference between young and old drivers with the lowest premium for a teen coming in at 91% more than the lowest premium for a senior driver.

Once a driver hits 25, rates will start to drop, assuming they keep their driving record clean, and will stay stable until their 70s when they will start climbing a bit.

Cheapest car insurance for senior drivers in Colorado

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In Colorado, the cheapest insurance company for senior drivers is GEICO at $1,430 a year or $119 a month. State Farm grabbed the second-place spot with premiums running $1,802 annually or $150 a month, Kemper Insurance was third at $2,023.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Colorado

Car insurance for young drivers in Colorado

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In Colorado, GEICO is the cheapest option for young adults with a yearly premium of $2,089 or $174 a month.

State Farm is the next most affordable with an average rate of $3,080 followed by Kemper Insurance at $3,365.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 20s.

The table below shows the best insurers for young drivers in Colorado:

Average rates for young drivers in Colorado

Car insurance for teen drivers in Colorado

Insuring a teen is always expensive; statistics show that inexperienced teen drivers get into more accidents and file more claims than more experienced drivers. In Colorado, the best insurer for teen drivers is GEICO with an annual premium of $4,796 or $400 a month. State Farm was second most affordable at $5,113 a year or $426 monthly while Auto-Owners was number three at $6,292.

While teens are expensive to insure, there are a few ways to save some money. Most insurers offer a good student discount so if your teen is carrying a B average or above you should ask for a discount. Putting them in an older vehicle will also lower your insurance costs.

The chart below shows average premiums for teens.

Average rates for teens in Colorado

Average cost of car insurance in Colorado

In Colorado, the average premium is $2,337, which makes Colorado the 4^th most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

Which Colorado ZIP codes are most expensive for car insurance?

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Cope is the most expensive area for coverage with an average premium of $2,729 a year.

Here are the most expensive ZIP codes in Colorado for car insurance:

Most expensive ZIP codes in Colorado

Which Colorado ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in Colorado is in Fruita with an annual premium of $1,861.

Least expensive ZIP codes in Colorado

Cheapest car insurance for high-risk drivers in Colorado

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 28% increase, pushing the average rate to $2,526. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 51% to an average of $2,987. A DUI will result in the biggest increase, sending your premium up 84% to an average of $3,638.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Colorado after a traffic incident

Minimum car insurance requirements in Colorado

Most states require drivers to carry a minimum amount of liability car insurance, and Colorado is no exception. Drivers are required to carry 25/50/15 in liability coverage, which translates into:

• $25k for injury/death per person
• $50k for injury/death per accident
• $15k for damage to property

But state-required minimums are rarely enough coverage in a serious accident. If you cause an accident and the damages exceed your coverage levels, you will need to cover the damages out of pocket.

The most common required coverages are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage.

Experts typically recommend carrying 100/300/100 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Colorado.”

Explore other insurance options in Colorado

Non-owner auto insurance in Colorado

Average renters insurance cost in Colorado

Average homeowners insurance cost in Colorado

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.