Car insurance is essential to protect you from unexpected expenses. Most states require a minimum amount of liability insurance to compensate other drivers or pedestrians if you cause an accident. However, coverage can sometimes be costly. When you shop around and consider your options carefully, you can find cheap car insurance in Colorado. Here are some of the most affordable insurance companies in the state, tips for selecting coverage, and ways to lower your rates.
Cheap Car Insurance Companies in Colorado
According to ValuePenguin, the average annual auto insurance rate in Colorado is $791 per year for the minimum amount of liability coverage required. You can still find cheap rates at many companies, however. Here are their average yearly rates:
- USAA: $381
- State Farm: $452
- GEICO: $667
- Progressive: $813
- Nationwide: $867
- Allstate: $895
- American Family: $1,029
- Farmers: $1,226
State Farm is the best value for most people. Veterans, active service members, and their families can get even more savings with USAA.
Comparing Insurance Options
Many car insurance choices are available, and understanding your options can help you find affordable coverage. Contact several cheap car insurance companies, get quotes, and compare them carefully. Ask your relatives and friends for recommendations, and contact Colorado’s Division of Insurance to learn about disciplinary actions against agents, agencies, or insurance companies you want to consider.
Think about your deductibles and policy limits along with your premium. Coverage that’s slightly more expensive could be worth the price because it provides better protection and customer service after an accident. With many insurance companies, you can purchase coverage for rental car reimbursement, roadside assistance and towing, medical and funeral expenses, and glass protection. Gap insurance that covers the difference between your vehicle’s worth and what you owe on it is also optional.
Avoiding Too Much Coverage
If you have money in savings, think about raising your deductible to lower your premium. Your deductible is the amount you must pay for repairs before your insurance company will help you with the rest of the expenses. If you drive an older vehicle that doesn’t have a high resale value, you can skip collision and comprehensive insurance and get only liability coverage.
Colorado requires $25,000 of coverage for bodily injury or death to any one person in an accident, $50,000 for bodily injury or death to everyone in an accident, and $15,000 per accident for property damage. For better liability protection, you can increase the coverage for bodily injury or death to $100,000 per person and $300,000 per accident. However, comprehensive and collision coverage is required if you haven’t yet paid off a car loan.
While driving with these minimum requirements will satisfy the law in Colorado, many consumer advocates recommend increasing your coverage to include liability coverage of at least $100,000 per person and $300,000 per accident. In addition, if you still owe money on your car, you must have comprehensive and collision coverage.
If you choose only liability insurance and your current vehicle becomes a total loss, you’ll have to buy a new car with your own money. Make sure you have the credit needed to get a loan for a new or used car. You can also save the funds to pay for a new ride with cash.
Uninsured and Underinsured Motorist Coverage
Uninsured or underinsured motorist coverage for bodily injury and property damage insurance is available. It pays for your damages or medical expenses if you get into an accident with a hit-and-run driver or someone without insurance. Drivers in Colorado usually have the same amount of uninsured and underinsured motorist coverage as they do liability insurance. You can waive this coverage completely or choose a lower amount, but without it, you might need to pay for repairs or medical treatment even if an accident wasn’t your fault.
Drivers with collision and comprehensive insurance typically get uninsured and underinsured motorist coverage, too. It helps keep their rates from going up after an accident. If someone without insurance hits you and you don’t have uninsured motorist coverage, you must use your collision insurance and risk paying higher premiums in the future.
Lowering Your Insurance Rates
Many factors impact your insurance rates, and you can lower your premiums in a variety of ways. Improving your credit score can help you get cheap car insurance in Colorado. Pay your bills on time, and consider applying for a secured credit card. These accounts work like regular credit cards. They usually have low limits, and they require a deposit when you open the account as collateral. They let you demonstrate to creditors that you can be responsible and pay your bills on time.
Taking a defensive driving course and avoiding traffic tickets carefully can help you lower your premium by showing insurance companies you’re a safe driver. If you drive fewer than 10,000 to 12,000 miles per year, depending on the insurer, you can often get a discount for low mileage, as well. With some companies, even bigger discounts are available if you allow them to place a tracking device in your vehicle. These devices can monitor many aspects of driving, including how fast you go, whether you use your phone while behind the wheel, and how hard you brake and turn.
Younger drivers can often get discounts for being good students or keeping their vehicles at home while they live on campus at college. Discounts for having more than one car insurance policy with the same carrier or for also having homeowner’s insurance are often available, as well. Different insurance carriers often have different rules, so it’s a good idea to ask your insurance company about other ways to lower your rates.
Driving without insurance in Colorado can lead to a suspended license, fines totaling at least $500, and up to 40 hours of community service. To prevent these penalties, always keep a copy of your car insurance information in your vehicle. When it’s time to renew your policy, compare prices to find cheap car insurance in Colorado. You can find many insurance carrier options in the state and can easily personalize your coverage to suit your needs.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.