How to Find the Most Affordable Car Insurance in Colorado

Fran
Lucy Lazarony
July 2, 2020

In Colorado, the average car insurance rate is $1,757 annually, which is 14 percent higher than the national average. So folks in Colorado are definitely looking for better deals on their auto insurance. Luckily, there are several different tips and strategies that will work to lower auto insurance rates. It is just a matter of trying out as many as possible. First, let’s take a look at car insurance in Colorado.

State Minimum Liability Requirements

If you are ever the cause of an auto accident, liability insurance pays for other people’s injuries and their property damage up to your liability limit.

Every state has its own minimum liability insurance requirements for drivers in their state.

In Colorado, the minimum liability requirement is $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $15,000 property damage liability coverage per accident.

On average, the cost of the minimum coverage in Colorado is $673 annually.

Full Policy Has Higher Costs

On average, getting a full policy with liability, collision and comprehensive coverage and $1,000 deductibles will cost $1,547 annually. Collision insurance is coverage that helps to repair or replace your car if it is damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive insurance covers events that aren’t covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Both collision and comprehensive insurance coverages require deductibles.

Choosing a high deductible will lower the cost of your insurance premium. But make sure you have the cash in savings to cover it. Having a small emergency fund with the deductible amount included in it is a good idea. If an accident or loss should happen to your car, you want the cash on hand to pay for your deductible so your insurance company can begin to pay for damages to your car.

If you are financing your car, your lender may require that you get both collision and comprehensive coverages.

Cheapest and Most Expensive Cities

In Colorado, the most expensive city is Pueblo with a $2,183 annual premium. The cheapest city for auto insurance is Grand Junction with a $1,392 annual premium.

Colorado Is an At-fault State

When it comes to auto insurance, Colorado is an at-fault state. This means Colorado drivers are responsible for any damages they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster.

Why Is Auto Insurance So Expensive in Colorado?

The reason car insurance is so expensive in Colorado is the state has several densely populated cities. These cities have more drivers and more accidents and this drives up insurance rates.

How to Save Money on Car Insurance

There are a number of ways to save money on car insurance. Which ones are right for you? Let’s take a look.

Build a good credit score. People with good and excellent credit scores get lower auto insurance rates. That’s just the way it is. Insurance companies have been using consumer credit data in assigning risk pools and for determining premium rates since the mid-1990s. In Colorado, a driver with excellent credit can save more than $1,700 per year in car insurance premiums compared with a driver with bad credit.

Be a safe driver. Follow the rules of the road and drive accident-free and you’ll save money on your auto insurance. Be a squeaky clean driver with no speeding tickets, no DUIs, no moving violations and no at-fault accidents and you’ll save on your auto premiums. In Colorado, drivers without a recent at-fault accident save almost 40 percent on their car insurance. And Colorado drivers without a recent speeding ticket save 17 percent.

Get married. If you are married, you will pay less for auto insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles. In Colorado, married drivers save $122 each year on car insurance.

Bundle your policies. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Insure more than one car. Insure more than one car with the same insurance company. Doing so will save you money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or the six-months amount. Your premium is lower when you pay once or twice a year.

Buy a house or condo. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your own home and enjoy the savings on your auto insurance premium.

Check safety and anti-theft features. Having certain safety and anti-theft features on your car can save you money on car insurance. So be sure to check with your insurance company about the safety and anti-theft features on your car to see if you qualify for any discounts.

Check memberships. Members of particular professional organizations and affiliations get discounts on car insurance. So check the membership cards in your wallet. Will any give you a discount on car insurance? Call and ask your insurer.

Insure less for older cars. The maximum payout for collision and comprehensive coverages is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverage any longer.

Maintain your insurance coverage. You’ll pay higher auto insurance rates if you don’t maintain continuous coverage. So stick with your auto insurance and save money.

Choose a high deductible. As mentioned earlier, choosing a high deductible will save you money on your auto insurance premium especially with a new car. Just be sure to put the money for the deductible in a small emergency fund. That way the money will be there should you need it to file an auto claim.

Be a low mileage driver. Heavy commuters pay for all the miles they rack up on the highways with higher insurance rates. Low-mileage drivers pay less for insurance. So drive less and pay less for your auto insurance.

Be a woman. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Because of their accident claims, men pay more for auto insurance.

Be older than 25 and younger than 65. Younger and older drivers have more serious accidents and pay more for their auto insurance. Drivers that are in between the ages of 25 and 65 pay less for car insurance.

Choose a safe neighborhood. The neighborhood where you live affects your car insurance premium. Live in a neighborhood with high accident claims and high auto theft and you’ll pay more for auto insurance. On the flipside, if you live in a neighborhood with few accidents and low crime you will pay less for your car insurance.

Now that you know a few ways to save money on car insurance in Colorado you can go ahead and do it.

So shop smart and drive safe on the roads of Colorado.

Get a Free Auto Insurance Quote Online Now.

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