Cheapest Car Insurance for Good Drivers in Colorado

Deciphering which companies have the best auto insurance rates for good drivers takes more time in order to find coverage that fits your buget. Each insurance company used slightly different criteria for setting rates, so let’s look at the rankings for the auto insurance companies that tend to be cheaper in Colorado.

It’s a good idea to be aware that Colorado auto insurance rates are impacted by many factors which can substantially decrease or increase the price you have to pay for coverage. Simply getting older, buying a home, or having a fender bender may cause policy rate changes that can now make some companies more affordable than before.

Best Auto Insurance Prices for Good Drivers

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The Hartford generally has some of the most affordable car insurance rates in Colorado at around $834 per year. Grange, USAA, GEICO, and Nationwide also make the cut as some of the lowest-priced Colorado auto insurance companies.

In the above rates, if you are a customer of Grange and switched to The Hartford, you may see a yearly savings of in the neighborhood of $144. Insureds with USAA might save as much as $165 a year, and GEICO insureds might lower prices by $307 a year.

These premium estimates are averaged for all types of insureds and vehicles and and are not calculated with a price decrease for good drivers. So the car insurance company that fits you best may not even be shown in the rate chart shown above. That points out the importance of why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.

One of the more important things that aid in calculating rate quotes is where you keep your car in Colorado. Cities with larger populations or higher claims like Denver, Pueblo, and Northglenn tend to pay slightly more, whereas areas with less people or fewer weather incidents profit from lower rates.

The illustration below rates the highest-priced areas in Colorado for good drivers in which to purchase auto insurance.

Premium amounts are comparative as specific Colorado zip code can alter coverage prices considerably.

Difference between liability only and full coverage rates

Finding the cheapest car insurance for good drivers in Colorado is important to the majority of vehicle owners, and a great way to pay less for insurance is to only pay for liability coverage. The illustration below shows the comparison of auto insurance rates with and without physical damage coverage. The price estimates are based on no accidents or driving violations, $500 deductibles, marital status is single, and no additional discounts are factored in.

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Averaged for all ages 20 through 70, physical damage coverage costs an extra $1,656 per year more than just buying liability only. That touches on the question if you should buy full coverage at all. There is no definitive formula of when to drop full coverage on your policy, but there is a general school of thought. If the annual cost of your full coverage insurance is 10% or more of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.

For example, let’s assume your vehicle’s settlement value is $6,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled, you would only receive $5,000 after the policy deductible has been paid. If premium cost is more than $500 a year to have full coverage, then you may want to consider only buying liability coverage.

There are a few situations where dropping physical damage coverage is not financially feasible. If you haven’t paid off your loan, you have to carry full coverage in order to prevent your loan from defaulting. Also, if you cannot afford to purchase a different vehicle in the even your car is totaled, you should maintain full coverage.

How careless driving impacts auto insurance rates

A great way to enjoy the best auto insurance premiums for safe drivers is to be a careful driver and have a clean driving record. The illustration below illustrates how traffic citations and at-fault claims drive up insurance costs for different ages of insureds. The price estimates are based on a single female driver, comp and collision included, $1,000 deductibles, and no discounts are taken into consideration.

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The data above shows the average cost of auto insurance in Colorado per year with no violations or accidents is $1,410. Get written up for two speeding tickets and the average cost increases to $1,875, an increase of $465 each year. Then include one accident along with the two speeding tickets and the annual cost of auto insurance for good drivers goes up to an average of $2,347. That’s an increase of $938, or $78 per month, just for not being attentive to the road!

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

If you want the best auto insurance for safe drivers, four of the larger companies to compare rates for are Allstate, Geico, State Farm, and Progressive. When combined, they insure almost 50% of the entire U.S. market share. The next table rates ratings for price and service, as well as some optional coverages shoppers can expect to find with each one.