Having car insurance is a legal requirement in almost every state across the country including Colorado. That’s why it’s crucial for Denver residents on a budget to know how to find the cheapest car insurance options. Read on to learn more about how to get cheap auto insurance policies in Denver that fit your unique needs:
What Is Car Insurance?
Car insurance is a type of insurance policy that can help cover costs in the event of certain accidents, thefts, and other auto incidents. When you purchase auto insurance, you sign a contract with the insurance provider. In exchange for your regular monthly payments, that provider can financially support you during some auto-related events.
Types of Car Insurance Available in Denver
Before you start shopping for your car insurance, it’s important to understand the different types of coverage available to you. Here are some of the most common types of auto insurance available in Denver:
- Collision coverage: Collision auto insurance can help pay for expenses incurred during auto-related accidents. No matter whether you or another driver was at fault, this type of insurance policy can pay for some of your costs.
- Uninsured or underinsured driver coverage: This type of insurance policy covers expenses in situations where the other driver’s at fault, but doesn’t have any or enough insurance to pay for the damages you incurred.
- Bodily injury and property damage coverage: Bodily injury and property damage policies can help pay for expenses when you’re involved in an at-fault accident. These expenses may include injuries to the other driver, death, or property damage.
- Comprehensive coverage: Drivers who purchase comprehensive coverage have insurance for situations beyond their control. For example, comprehensive coverage can provide you with financial assistance if your car’s damaged during a natural disaster or by a break-in.
Minimum Car Insurance Coverage Needed in Denver
All states have different requirements for the minimum auto coverage that resident drivers need to possess. In Colorado, drivers must have auto insurance that covers at least the following:
- $50,000 bodily injury liability per accident
- $25,000 bodily injury liability per person
- $15,000 property damage liability per accident
Average Cost of Car Insurance
Many factors can influence the price of auto insurance for individual drivers. These factors include your age, gender, driving record, and the city and state where you live. Here’s a quick comparison of the average annual cost of car insurance in Denver, Colorado, and the entire U.S.A.:
- Denver: $1,949
- Colorado: $1,757
- U.S.A.: $1,548
Cheap Car Insurance Options for Denver Residents
Since the price of various auto insurance policies can vary depending on a range of factors, the cheapest option for you might not be the same as the cheapest option for someone else. Below, we offer some guidelines on the cheapest car insurance in Denver for drivers with various records and from an array of demographics:
Cheapest Car Insurance in Denver for Full Coverage
Denver drivers interested in purchasing full coverage may discover that Geico offers the cheapest plans. On average, Denver residents pay $872 per year for full auto coverage through Geico.
If you’re a member of the military or an immediate family member, USAA can offer you even cheaper full coverage auto insurance at an average annual rate of $686.
Other cheap options for full coverage auto insurance policies in Denver include:
- Travelers: $1,012
- State Farm: $1,107
- Esurance: $1,138
Cheapest Car Insurance in Denver for Minimum Coverage
Looking for a way to simply get the cheapest car insurance with minimal coverage? Geico again may be your cheapest option, with an average rate of $377 per year for Denver residents. Denver military members and families can get an even lower rate of $297 annually from USAA.
Here are some other insurance providers, along with their average annual cost, for Denver residents looking for minimum auto coverage:
- Auto-Owners: $456
- State Farm: $542
- Travelers: $614
- Nationwide: $622
- Allstate: $633
Cheapest Car Insurance in Denver for Drivers with Violations
Having violations on your driving record can make auto insurance cost more expensive nationwide, including in Denver. For example, the average auto insurance cost in Denver for drivers with a DUI is $2,630. Similarly, Denver drivers with a speeding ticket pay an average of $2,295 for their auto insurance, while drivers with an at-fault accident pay on average $2,763 annually. Here are the cheapest car insurance options for Denver residents with driving violations:
- Drivers with a speeding ticket: State Farm offers Denver drivers with a speeding ticket an average annual cost of $1,202 for their auto insurance policy.
- Drivers with a DUI citation: With an average annual rate of $1,202 for Denver drivers with a DUI, State Farm may also be the cheapest car insurance option for Denver residents with this driving violation.
- Drivers with an at-fault accident: Drivers who’ve been in an accident that was their fault should look into State Farm’s insurance options, as their average cost to drivers with an at-fault accident is $1,296 per year.
Cheapest Car Insurance in Denver for Young Drivers
Young drivers Across the nation often have much higher auto insurance rates, and this is true in Denver too. The average cost of full coverage auto insurance for young Denver drivers is $9,809 per year. Young drivers can potentially lower these rates by staying on their parents’ auto insurance policy, getting good grades, and taking a defensive driving class.
The cheapest car insurance option for young Denver drivers looking for full coverage may be through State Farm, which charges young Denver residents an average of $3,283 annually. The following is a list of the average annual cost of full coverage auto insurance from other providers that offer cheaper rates on average for young Denver drivers :
- USAA: $3,980
- Geico: $7,480
- Allstate: $8,837
Cheapest Car Insurance in Denver for Drivers with Poor Credit
Having a poor credit score can make the cost of auto insurance higher. Denver drivers with a credit score labeled “very poor” pay an average of $3,752 per year for their auto insurance.
With an average cost of $1,512, Geico typically has the cheapest auto insurance rates for drivers with poor credit. Other cheap options for Denver residents who have bad credit include:
- Nationwide: $1,857
- USAA: $2,206
- Allstate: $2,694
- State Farm: $2,758
- American Family Insurance: $2,990
- Farmers Insurance: $3,222
Whether you’re using your car for your morning commute or just to hit the open road for an adventure, it’s important to have the proper insurance based on both your state’s requirements and your driving profile. Armed with this guide, Denver drivers can confidently scour for cheap car insurance policies that match their budgets and 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.