Cheap Car Insurance in Colorado for 2024

Colorado is an expensive state for auto insurance with an average premium around $2,200 per year. We researched the cheapest insurers in Colorado to see how you can save money on car insurance.

See our overall recommendations for Best Car Insurance

Who has the cheapest car insurance in Colorado?

• GEICO
• USAA
• State Farm
• Nationwide

We sampled information from a number of sources and developed a range of what cheap car insurance usually costs per year in Colorado. We based these samples on a driver with at least a decade of driving experience, a clean driving record, driving one of America’s most popular, non-exotic vehicles.

The important thing to remember is that insurance rates can vary widely, and prices can change almost daily. This range is only a GUIDE to give you a basic idea about the rates insurance companies charge today in Colorado.

DISCLAIMER: There are numerous other factors that are going to impact the cost of insurance on your car, crossover, or truck. We’ll provide info on some of those variables, but your best bet is to read our deep dive on Cheap Car Insurance for 2024 to get a better idea.

Who has the best cheap car insurance in Colorado?

• Best Large Insurance Carrier - In Colorado, our analysis points to GEICO as the most affordable national, brand-name insurance company. State Farm and USAA have comparatively low rates in certain categories as well.

• Cheapest Insurance with Bad Credit - Based on multiple points of data we found, GEICO has the lead here for folks who have a bad credit rating.

• Cheapest Insurance with One Accident - GEICO is also the cheapest when you have had a mishap. Esurance may also be with a look.

• Cheapest Insurance for Higher Mileage - GEICO again. The no-middle man insurer seems to be taking a strong run at the state of Colorado.

How much does car insurance cost in Colorado?

In Car Talk’s deep dive on affordable car insurance, we found that a national average for auto insurance was $1,800. In Colorado, depending on what city and county you live in, you’re probably going to be paying up to 22% more. Our latest research also revealed that the overall average has gone up slightly in 2024.

(*) The “adjusted average” is computed by eliminating the highest and lowest values and averaging the remaining values.

(**) You may need to be, or have been a service member to apply.

What causes rates to go up in Colorado?

Let’s start by asking, “Why is insurance expensive in Colorado in the first place.” There are some factual answers. The first being hail. Colorado is near the top of the list of states with hail damage claims.

Next up, sensimilla. In every state but one, insurance premiums rose when marijuana was legalized. Sing the anthem of the state along with us, “Friends around the campfire and everybody's high…” Actually, John Denver meant, “Everybody’s insurance premiums are high.”

How do accidents affect rates in Colorado?

Crashing your car means you win the bet. You just beat your insurer who was betting that you would not crash. Now you have to pay up going forward. The house always wins. If you rub fenders with another motorist, your insurance rate is going to go up. Exactly how much is known only to the insurer you have. Colorado is one of the majority states that uses a “fault” system. That can actually help reduce costs overall. But it can also mean costly lawsuits.

Here are the best estimates we could find from various sources on how much one accident will raise your policy premium in Colorado:

This information is just an approximation. Many factors can change how much your insurance goes up after you have one accident. For example, if you’ve paid more in your annual insurance cost to be a part of an accident forgiveness program, your increase for one accident is nothing, but your overall cost of insurance is higher every year than if you hadn’t. Almost all of the insurers on our list above of cheap insurance providers, and many others, offer this option which was popularized by Allstate.

How do traffic tickets affect rates in Colorado?

Breaking traffic laws gives your insurer an excuse to raise rates. And they are not going to pass up that chance. How much the sting will be in Colorado varies based on the type of ticket and the severity of the offense. And those rates will not go up for just one year, but two.

Here is the data we could dig up on the percent increase range a ticket will raise your car insurance policy premium in Colorado. For information on how Colorado’s courts handle ticket traffic school, check out Car Talk’s deep dive on the subject.

How can you get car insurance discounts in Colorado?

The most significant discount you can realize in Colorado is to move to a location with lower rates. Even just being outside of the downtown area can help. Move to a county or city or town with lower claim rates and you may save as much as 30% per year. We looked at the comparative costs of insurance in Colorado and found that Fort Collins, home of Colorado State, (Go Rams!) was one of the least expensive cities. Denver is one of the most. But moving comes with a lifestyle change many are not willing to make.

The easier way to manage your insurance costs is to avoid crashing and getting traffic tickets. And your car and phone apps can help. Avoiding accidents has gotten easier in recent years as vehicles with automatic emergency braking systems have become the norm, even in affordable vehicles like the Honda Civic and Toyota Corolla. Ironically, insurers don’t discount cars with those systems yet because they cost a lot to repair (so they say…)

Avoiding speeding tickets in Colorado is harder than in some states. The speed limit in Texas on a lonely state highway is as much as 15 MPH higher than in Colorado. However, apps like Google Maps Waze to help you know where the speed traps are and warn you to slow down.

We also have an entire story on the tens of thousands of discount programs available, based on memberships, military service, and other associations. Some of the more common meaningful discounts relate to low mileage driving, bundling with your home owner’s policy, and carrying high deductibles. Students take note: Many insurers will offer good students a discount. Parents take note: If your kid is at college more than 100 miles away you may see big savings.

What’s the minimum coverage allowed in Colorado?

Insurance is required by law in Colorado. To drive in Colorado, you must have at least $25,000 in liability coverage for each injured person, up to a total of $50,000 per accident, and $15,000 for property damage per accident. This basic coverage is called 25/15/50. Almost no homeowner with any assets will buy just the basic coverage required by law. More typical is coverage on the order of 100/300/50. It seems unfair, but that’s the way it works when you have assets to protect

Nearly every state’s minimum is way too low. If you have a vehicle loan or lease, or own a home, you will find that you are required to carry higher levels of coverage to satisfy other agreements and responsibilities you have. Our focus in this story is on cheap car insurance.