How Much Does Car Insurance Cost for Drivers with Bad Credit in Colorado?

It’s hard to miss the catchy commercials from companies like Progressive, Nationwide, and Liberty Mutual that say if you switch you’ll get huge savings, so drivers just need to pick the company with the catchiest ad, right?

Unfortunately, it’s just not that easy, as there are many unknown aspects like the area you live in, whether you just need liability insurance, what level of deductibles you need, and if you are a homeowner, that all impact the cost of your policy. We will try to teach you about these topics and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance.

Finding reasonably-priced car insurance is not always easy, and deciding which company offers the most affordable auto insurance rates for drivers with bad credit may require even more rate comparisons. Policy prices will probably be moderately more than the average rate in Colorado because of the potential for more claims associated with offering coverage for people with poor credit, but affordable insurance should be available if you do a thorough comparison.

Each insurer has a unique approach to set premium rates, so we need to take a look at the auto insurance companies with the most affordable rates in Colorado.

Cheapest Insurance Rates with Bad Credit

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The Hartford quotes some of the most affordable car insurance rates in Colorado at around $859 annually. Grange, USAA, Nationwide, and Auto-Owners would also make the list of some of the lowest-priced Colorado car insurance companies.

In the above rates, if you currently have coverage with Auto-Owners and switched to Grange, you might realize savings of approxmiately $178. Policyholders with GEICO could save as much as $198 a year, and Travelers customers might lower prices by up to $229 a year.

To compare your rates to other Colorado insurance companies, click here to begin a quote or click through to the companies below.

Understand that those premium estimates are averaged for all drivers and vehicles and and are not figured with a rate surcharge for drivers with bad credit. So the auto insurance company that has the cheapest rates for you may not even be included in the list of companies shown earlier. That helps illustrate why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.

When shopping for insurance for people with poor credit, one of the many considerations that insurance companies use to determine a rate quote is your zip code in Colorado. Areas with more people or higher crime rates like Pueblo, Denver, and Lakewood likely pay more, whereas areas with less traffic congestion and claims have the luxury of cheap auto insurance for drivers with bad credit in Colorado.

The illustration below shows the most expensive areas in Colorado for drivers with bad credit to buy car insurance in.

Rate information is estimated as the specific geographic location can modify premium rates significantly.

The car, truck, or SUV you are buying coverage for is one of the largest factors when trying to find the cheapest insurance for drivers with bad credit. Vehicles with more horsepower, poor passenger safety features, or a track record of large liability claims will cost much more to insure than more economical and safe models. The lists below presents auto insurance prices for a selection of the most cost-effective automobiles to insure.

Data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Colorado minimum liability limits. Discounts applied include homeowner, safe-driver, multi-policy, multi-vehicle, and claim-free. Premium amounts do not factor in specific zip code location which can revise price quotes substantially.

Premium data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, safe-driver, multi-policy, multi-vehicle, and homeowner. Prices do not factor in specific zip code location which can influence coverage prices significantly.

Premium data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Colorado minimum liability limits. Discounts applied include multi-policy, homeowner, multi-vehicle, claim-free, and safe-driver. Estimates do not factor in garaging location in Colorado which can raise or lower price quotes significantly.

The information below shows how choosing a deductible can raise or lower insurance costs when trying to find cheap insurance for drivers with bad credit. The price estimates are based on a married male driver, comprehensive and collision coverage, and no discounts are applied to the premium.

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In the chart above, a 30-year-old driver could lower their policy premium by $366 a year by increasing from a $100 deductible to a $500 deductible, or save $550 by selecting a $1,000 deductible. Young drivers, like the age 20 example, could shave $1,110 each year just by choosing higher deductibles. When increasing deductibles, it will be important to have plenty of discretionary funds to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

Which auto insurance company is best?

When comparing rates for auto insurance, four of the best places to start are Geico, Progressive, State Farm, and Allstate. The data below illustrates some of the different options and features that may be available in your state.

How to get cheap auto insurance for drivers with bad credit in Colorado

Below you’ll find a few money-saving ideas that can help you locate low-cost car insurance.

• Higher deductibles save money
• Keep your driving record clean
• Don’t waste money on full coverage for older vehicles
• Buy safe vehicles
• Good credit can mean cheaper rates
• Accident-free drivers may qualify for discounts
• Compare rates often to find the best deal

That last tip is incredibly critical, as we emphasized in the prior information. Prices in Colorado vary considerably, so drivers shouldn’t hesitate to change to a new company if you can save money. Many drivers tend to have loyalty to a certain company, but it’s not recommended if that loyalty ends up costing money that could be spent on other things. Spend a few minutes and compare rates and find cheaper insurance for drivers with bad credit.

Cheap insurance quotes for people with poor credit

Drivers have many ways to get cheap auto insurance quotes in Colorado, but the three most common methods are through a non-exclusive or independent agent, an exlusive agent such as Allstate or State Farm, or buying direct from a company like Geico or Progressive.

All three ways can provide auto insurance quotes, but it’s important to understand the differences in how they price policies.

Independent agencies have contracts with many companies and can get policy pricing from each one. Independent agents will compare multiple rates, which can give you the best chance of saving money. If a cheaper price is found, an independent agent can move your coverage and the insured can keep the same agent.

An agent who is captive is only able to quote rates from a single company like an Allstate or Liberty Mutual agent. These agents usually cannot provide other companys’ prices, so keep that in mind.

The third popular method of shopping for auto insurance is direct, which means you skip an agent and instead shop direct from companies such as Esurance or Progressive. This auto insurance option may be a decent choice people who do not need complex risk management and have a good understanding of what coverage options they need.

So which of the methods works best to buy cheap auto insurance for drivers with bad credit in Colorado? We’d like to say shopping direct results in the cheapest rates because you bypass the middleman, but that generally is not the case. A valid argument could also be made that buying auto insurance from an independent agent guarantees the best prices because they can quote many companies, but that assumption is also not necessarily accurate. In many circumstances, exclusive agents have really good rates that are well below what direct and independents offer.

Due to the large number of rating factors, really the best method to get the lowest rate is to get quotes and compare the rates. It’s recommended that drivers get price quotes from independent, exclusive, and direct to get a good idea who is cheapest. For a list of auto insurance companies with low rates, click here to view.