Best 4 Car Insurance Companies in Colorado 2019

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Colorado is a competitive state for car insurance, which is why the state’s average monthly premium is $100 — $30 cheaper than the national median. Don’t think you have to settle for average, though. You can still save hundreds of dollars on your rate simply by comparison shopping.

After comparing car insurance quotes from five different providers, Liberty Mutual came in as the cheapest option at $1,308 a year. And while Liberty Mutual was the least expensive for this example, it is not going to be the cheapest company for every driver.

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Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Every company has its own methodology for determining your risk level, which is based on factors such as age, gender, marital status, location, driving record, etc. What’s more, not all companies assess risk in the same way. All that’s to say you can’t assume you’ll get the same rates; you’ll have to go through the quote process yourself. It’s best to get as many quotes as you can – at least five.

The key to comparison shopping is to know what insurance coverages you need before you start, and then find out how much those coverages will cost from a number of companies. Comparison shopping takes time but can save you money.

In general, a quote can be as easy as spending 10 minutes clicking through an online form as long as you are properly prepared with the necessary information. Of course, you will need to have easy access to your basic personal information (date of birth, address, ZIP code, marital status), but you will also need access to information about your car. Have your vehicle identification number, or VIN, if you can, but if you don’t have that handy, then you will need the make, model, year and body style of your vehicle. It’s also important to know which coverage you want from the get-go.

Our Top 4 Picks

Our Top 4 Picks for the Best Car Insurance in Colorado 2019

Two different criteria were considered when choosing these companies: customer service and financial stability. We chose insurers with the highest customer satisfaction ratings from J.D. Power a worldwide leader in customer satisfaction data. We also chose companies based on their financial solvency ratings from A.M. Best. In the event of an accident, you want a company that provides excellent customer service and has the financial strength to pay claims.

Sometimes the company that’s easiest to get a quote from is not always the company that will provide you with cheap car insurance. The Hartford was the only company that required us to get a quote from a representative over the phone, but it ended up offering a deal that was more than $100 cheaper than the next cheapest company, American Family Insurance. Liberty Mutual and Geico were both within $200 dollars of each other and were very easy to get a quote from. The Hartford was a shocker, quoting a whopping $2,174 for the same basic insurance as the other companies.

Colorado’s Minimum Coverage Requirements for 2019

Colorado law requires bodily injury coverage in the amounts of $25,000 per person and $50,000 per accident. Liability insurance covers any damage you do to another person’s property and is required in the amount of $15,000. Insurance companies refer to this as 25/50/15.

Many drivers look for the least expensive premium with bare minimum coverage, but that can be a mistake. Here’s why:

  • On average, drivers have accidents every 17.9 years.
  • The average cost of permanently injuring someone in an accident is at least $93,800, according to the National Safety Council.

If you were to purchase liability insurance from Geico at the state minimum ($25,000/$50,000/$15,000), the cost per year would be $472. However, if you purchased coverage that would provide a more realistic amount of protection in the amounts of $100,000 per person, $300,000 per accident, and $25,000 property damage, you would only be paying $557 — that’s only an increase of $85 per year.

If you were in an accident that seriously injured several people, you could easily be responsible for $150,000. With the minimum required insurance, you could still be sued for $100,000. However, if you wisely invested the $85 per year for the $300,000 liability insurance, you would have only spent $1,500 dollars in the average 18 years since your last accident. When you put it in perspective, you can see why it is always worth it to spend a few extra bucks for better coverage.

It’s always good to consider adding uninsured and underinsured motorist insurance, too, as no one wants to be hit by an irresponsible person and be stuck with the bill. Collision and comprehensive can also be a good investment depending on your situation. If you own a more expensive car, you always want to consider protecting your investment, as one accident could leave you in a really tough spot. If you have a lease or loan on your car, you’re likely already required to have comprehensive coverage.

If you are caught driving without the proper insurance, you will be subject to increasingly harsh penalties based on how many times you have been convicted of this offense. First-time offenders get four points put on their driving record and have to pay a minimum fine of $500. You will also have your license suspended until you can prove to the DMV that you have the proper insurance. On your second offense, you will be fined $1,000, and automatically have your license suspended for four months (third and following offenses result in an eight-month suspension). When you hit 12 points from any infractions, your license is suspended for one year.

While there are a lot of factors that determine how much you pay for insurance that you cannot change (only time can age us after all!), thankfully there are some steps you can take to lower your premium. A defensive driver course is always a great place to start — most insurance companies give you a hefty discount if you complete one. Many insurance companies also have a program that installs a small device in your car to monitor your driving habits, and, if you drive responsibly, they will give you a discount.

FAQs

Why are Colorado’s rates below average?

Colorado’s rates come in below the national average. The reasons for this aren’t totally clear, but the fact that Colorado doesn’t require extra insurance coverage (like uninsured motorist coverage uninsured motorist coverage or personal injury protection insurance) helps to create more competition which drives the rates down. However, there are a number of larger population centers, which means more drivers and more accidents which tends to drive the rates back up.

Find the Best Car Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

What if I’m not a full-time resident?

If you establish residency in Colorado, then you must have the state-required minimum insurance. Colorado defines residency as owning or operating a business in Colorado, being employed in Colorado, or residing in Colorado for 90 consecutive days. Once any of these three occurs, then you are considered a resident. Along with registering your car in the state, you must purchase valid insurance for Colorado.

What is no-fault insurance?

No-fault insurance is a state-mandated policy in some areas that requires the insurance company to pay the injury costs of their own customers. This can help to ensure that everyone gets immediate treatment in the case of a multi-car collision resulting in several injured parties. It helps to make sure no one is going untreated due to not knowing if their insurance will pay up. Thirteen states have this kind of insurance requirement. Colorado is not on that list.

The Bottom Line on Getting the Best Auto Insurance in Colorado

Because there are so many different factors to consider, and each company views them different, it’s very important to get as many quotes as possible. Otherwise, you’re probably not going to find the best car insurance policy possible. It’s also well worth the investment to not settle for the bare minimum of insurance required by the state, but to invest in insurance that will protect you financially should the worst occur and you have a serious accident. If you have even ten minutes now, get a quote and see how it compares to your current policy.

What is an SR-22 declaration?

SR-22 declarations are filed for people who have been dubbed “high-risk” due to actions like DUI charges or reckless driving. This declaration shows that you have insurance set up despite being labeled as a high-risk driver. It is often required before a state will re-issue a suspended license.

Find the Best Car Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Even If You’re Happy, It’s Best to Shop for a New Policy Every Couple of Years

The last few years have seen a lot of changes in the way insurance companies calculate the price of your auto insurance. Many insurers no longer consider your risk alone; they analyze a variety of non-risk related factors (including your online shopping history, how long you have been with your current insurance company, and even your social media habits) to determine your propensity to shop around. It’s a technique called “price optimization” and insurers use it to estimate how likely you are to leave them if your rates increased. All of this is, of course, an attempt to maximize profits without losing your business.

The Consumer Federation of America condemns the practice of price optimization, and Colorado is one of the states where it is banned. While this action will help to protect consumers from what many consider to be unfair discrimination, it still may be necessary to take steps of your own to protect yourself.

The best thing you can do is, thankfully, very simple: Shop for insurance quotes every couple of years. This will not only let you potentially find cheaper insurance as your personal situation changes, but it will also let insurance companies know that they can’t take you and your business for granted, which will help protect you from rates that are gradually increased for no apparent reason.

Three specific groups will especially benefit from regularly shopping around for insurance. Good drivers will get enticement bonuses for moving from one company to another. These drivers have a low likelihood of claims, so they are the profit basis for any insurance company. Young drivers aging out of a risk bracket can take advantage of this as soon as their birthday by shopping around, rather than waiting for the next time their policy renews. They can also shop for good student discounts. Customers with bad credit can lower their rates as their credit scores improve. Consider re-evaluating your insurance every 50-100 credit score points.

Best Car Insurance in Colorado

    • Liberty Mutual
    • Geico
    • State Farm
    • The Hartford

Because there are so many different factors to consider, and each company views them different, it’s very important to get as many quotes as possible. Otherwise, you’re probably not going to find the best car insurance policy possible. It’s also well worth the investment to not settle for the bare minimum of insurance required by the state, but to invest in insurance that will protect you financially should the worst occur and you have a serious accident. If you have even ten minutes now, get a quote and see how it compares to your current policy.