Best Cheap Car Insurance for Teenagers in Colorado

Finding reliable, budget auto insurance is not the easiest thing to do, and figuring out which company offers the lowest-priced car insurance rates for teenagers calls for a bit more work. Insurance rates will more than likely be much greater than the state average due to the extra risk associated with selling coverage for teen drivers, but economical coverage should be possible if you compare enough companies.

Each auto insurer has their own process for establishing rates, so let’s take a look at the most affordable car insurance companies in Colorado.

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The Hartford may offer some of the most affordable car insurance rates in Colorado at around $825 each year. Grange, USAA, Nationwide, and GEICO also rank well as some of the best Colorado car insurance companies.

In the above rates, if you currently have a policy with Nationwide and switched to Grange, you might realize an annual savings of in the vicinity of $156. Customers with GEICO might save as much as $165 a year, and Travelers insureds might reduce rates by $196 a year.

It’s important to note that these policy prices are averaged for all drivers and vehicles in Colorado and do not factor in a rate surcharge for teenagers. So the car insurance company that fits your situation best may not even be in the rate chart shown above. That affirms the importance of why you need to quote rates from many companies using your own personalized driver profile and vehicle information.

The type of vehicle you are insuring is a large factor that determines whether or not you can buy the lowest-priced car insurance for teenagers. Vehicles with higher performance characteristics, poor safety ratings, or a track record of large liability claims will cost much more to insure than more economical and safe models. The next list features coverage prices for a number of the cheaper vehicles to insure.

Table data represents single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in the specific area where the vehicle is garaged which can influence premium rates noticeably.

Based on these rates, we can conclude that cars like the Ford Escape, Honda CR-V, and Jeep Wrangler are likely to be the less-costly vehicles to insure for teen drivers. The price of auto insurance will tend to be more expensive because of the fact that there is more liability exposure for teenagers, but in general those particular vehicles will tend to have the least expensive rates available.

The diagram below illustrates how your deductible choice can affect insurance premiums when researching cheap insurance for teenagers. The premiums are based on a single male driver, full physical damage coverage, and no discounts are applied.

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The data above shows that a 50-year-old driver could pocket $290 a year by changing from a $100 deductible up to a $500 deductible, or save $436 by selecting a $1,000 deductible. Even younger drivers, like the 20-year-old example, could potentially save $948 or more by using higher deductibles when buying full coverage.

When using a larger deductible, it is essential to have enough funds in savings to enable you to cover the extra out-of-pocket expense associated with higher deductibles.

Safe drivers pay less for car insurance

The ideal way to maintain the best cheap car insurance for teenagers in Colorado is to be a safe driver and avoid accidents and keep your driving record clean. The example below highlights how speeding tickets and fender-benders can drive up annual premium costs for each age group. Data assumes a single female driver, full physical damage coverage, $100 deductibles, and no discounts are taken into consideration.

google.charts.setOnLoadCallback(drawVioqcibChart);function drawVioqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘No Violations or Accidents’, ‘One Speeding Ticket and No Accidents’, ‘One Speeding Ticket and One Accident’],[‘Age 20’, 3835,4179,5165],[‘Age 30’, 2653,2999,3983],[‘Age 40’, 2459,2805,3789],[‘Age 50’, 2151,2497,3481],[‘Age 60’, 2079,2423,3411],[‘Age 70’, 2421,2765,3749]]);var options = {title: ‘Impact of Tickets and Claims on Colorado Insurance Cost’,titleTextStyle: {color: ‘#333’, fontSize: 17, bold: true},width: ‘100%’,height: 600,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},colors:[‘#b2da64′,’#eed355′,’#e39e71’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in Colorado’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);formatter.format(data,3);var chart = new google.visualization.BarChart(document.getElementById(‘qcibvio’));chart.draw(data, options);}

The data charted above shows the average cost of a car insurance policy per year with a clean driving record and no accidents is $2,600. Get written up for one speeding ticket and the average cost jumps to $2,945, an increase of $345 each year. Now get one accident along with the one speeding ticket and the 12-month cost of car insurance for teenagers goes up to an average of $3,930. That’s an increase of $1,330, or $111 per month, just for being a less-than-perfect driver!

Progressive, State Farm, Geico, and Allstate: Who is best?

When it comes to auto insurance, four good companies to start with are Progressive, State Farm, Geico, and Allstate. When added together, they insure over 48% of all auto insurance policies in force. They all have the same basic coverages, but each one has different features and discounts that shoppers can select from. The following table shows some of the ratings and options shoppers can expect to find with each one.