What’s The Best Car Insurance In Colorado? Top 8 Revealed

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The Centennial State of Colorado is home to many—from vacation destinations, such as Pike's Peak and Vail, to famous residents, like the actor and comedian Tim Allen. As of 2016, there are over 4 million licensed drivers that also call the state home. Regardless of whether you call yourself a "Coloradoan" or a "Coloradan," if you are a driver in the state you will want to have the best car insurance in Colorado.

FAQs About Choosing The Best Car Insurance In Colorado

If you are a Colorado resident, you must have car insurance to legally drive your vehicle. Like many other states, Colorado has minimum coverage requirements so that all drivers on the road have some amount of protection. However, many Colorado drivers opt to add in additional types of car insurance to their policy, including comprehensive, collision, loan/lease payoff, medical and funeral services, rental car reimbursements, roadside assistance, uninsured motorist bodily injury, and uninsured motorist property damage.

In a perfect world, you would never have to use your car insurance; however, should an accident occur, you will be glad you took the time to research — and invest in — the best car insurance in Colorado for you and your family.

1. What Are The Minimum Requirements For Car Insurance In Colorado?

To legally drive a car registered in Colorado you must have an auto insurance policy that covers $25,000 for bodily injury (up to $50,000 per accident) and $15,000 for property damage. Keep in mind that, since this is the bare minimum Colorado requires you to purchase, it will not cover damage to your car.

2. What Factors Influence The Cost Of Car Insurance?

Depending on your age, ZIP code, driving record, and credit history, the car insurance rates you pay can (and likely will) differ from what another Colorado resident pays. If you cannot get coverage on the open car insurance market because of past accidents or other factors, you can apply for coverage through the Colorado Motor Vehicle Plan.

Bad Credit

It may come as a surprise, but poor credit can have a bigger impact on your car insurance rates than a DUI conviction or recent at-fault accident. Car insurance for drivers with bad credit costs significantly more than it does for those with good credit. However, the good news is that you can lower your car insurance costs by comparison shopping.

An At-fault Crash

If you are responsible for an at-fault crash, expect your car insurance rates to remain higher for three to five years after the accident. There's not much you can during those first three years, but be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Speeding Tickets

Speeding tickets are a sure way to increase your car insurance rates upon policy renewal. While you can expect to pay more for three years, it pays to compare your existing rates of other car insurance companies because you might find lower rates.

Adding a Teen

Regardless of what state you live in, adding a new driver to your family policy will hike your rate significantly. In Colorado, you can expect your rate to go up approximately 150% if you add a 16-year-old driver to your policy.

3. How Much Car Insurance Should I Buy?

You should buy more car insurance than the legal minimum, especially if you have savings and assets. The more money you have, the more likely the injured party will sue you following a car accident (should your insurance not be enough to cover all the expenses).

4. Why Is Car Insurance So Expensive In Colorado?

While car insurance underwriters don't release the exact calculations and variables that go into determining a state's rates, below are a few reasons Colorado's auto insurance rates are higher than the national average.

Bad Weather

Colorado is known for its snow, which is great for skis and snowboards but not so great for cars. Recent winter storms that have freezing rain, heavy snow, and ice conditions have forced car insurance companies to raise the price of their policies to account for costly weather-related claims.

Gas Prices

Your wallet might enjoy lower gas prices, but car insurance companies know that cheaper gas means more drivers on the road. When roads are busier, there is a higher likelihood of accidents — hence the higher costs of car insurance.

Distracted Drivers

While traffic-related deaths have been trending down across the country, Colorado has been dealing with the opposite scenario — largely in part because of distracted drivers. There is some speculation by car insurers that the legalization of marijuana in Colorado may increase distracted driving.

How We Reviewed

There is no shortage of car insurance policies and options for Colorado drivers. To help you narrow down the list and find the best car insurance in Colorado for you and your family, we picked eight different underwriters and evaluated them based policy features, coverage options, available discounts, the average monthly cost of a policy, and financial strength. We also included a link that will take you to the company's website where you can learn more.

As you read through our review the best car insurance in Colorado, you will notice an Additional Coverages section right below the Summary. All the companies we reviewed offer the required minimum car insurance liability coverage for Colorado, as well as collision, comprehensive, uninsured/underinsured motor vehicle, emergency roadside assistance, and medical payments. The car insurance policy items included in the Additional Coverages section are add-ons that are unique to that specific underwriter.

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Overall Price Range: Average Car Insurance Rates In Colorado

As we mentioned earlier in this review of the best car insurance in Colorado, the price you pay will depend on personal factors (such as ZIP code, driving record, age, and credit). However, when researching the best car insurance in Colorado, it's important to note that the state falls on the higher end in terms of cost. The average yearly premium for car insurance in Colorado is $1,383 (compared to the national average of $1,009) and the eight car insurance providers we reviewed fall into this price range.

The Top 8 Colorado Car Insurance Companies We Reviewed

State Farm Insurance

American Family Insurance

Allstate Insurance

Esurance

Safeco Insurance

Progressive

USAA Insurance

GEICO Insurance

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State Farm Insurance


Features:

As the largest auto insurance provider in the U.S., State Farm insures just under 20% of the Centennial State's drivers — making it the most popular option for the best car insurance in Colorado. State Farm makes it easy to check prices and understand the different parts of a car insurance policy. In addition, State Farm offers some of the best young driver discounts available, making it a great option for families with teen drivers.

Additional Coverages:

  • Car rental and travel expenses
  • Rideshare driver coverage

Discounts:

  • Accident-free
  • Drive Safe & Save™ Program
  • Driver education course completion (over the age of 55) and driver training (under age of 21)
  • Good driving
  • Good student
  • Passive restraint
  • Steer Clear® Safe Driver
  • Student away at school
  • Vehicle safety

Average Price Per Month: $

Where to Buy:

A.M. Best Financial Strength Rating: A++

State Farm is one of the highest rated companies in the insurance industry with a superior "A++" financial strength rating from A.M. Best. If you determine that State Farm has the best car insurance in Colorado for you and your family, the company will meet its financial obligations — even if the economy goes into a recession— and even after a large disaster that creates many claims at once.

American Family Insurance


Features:

American Family Insurance is a good choice for car insurance in Colorado if you are searching for a policy that has many discounts. In addition, American Family Insurance just purchased Ameriprise's Auto and Home insurance business — which includes Costco car insurance. If you are a member of Costco, be sure to maximize the yearly membership fee and see if your relationship with the wholesaler can get a lower price on Colorado car insurance.

Additional Coverages:

  • Gap (Lease & Loan)
  • Classic car
  • Business car
  • Rideshare
  • Rental Car

Discounts:

  • Multi-vehicle
  • Loyalty
  • Early-bird
  • Multi-product
  • Steer into savings
  • Auto safety equipment
  • Defensive driver
  • Good driving
  • Low mileage
  • KnowYourDrive Program
  • Good student
  • Teen safe driver
  • Away at school
  • Young volunteer
  • Generational
  • Autopay
  • Customer full pay
  • Paperless

Average Price Per Month: $

Where to Buy:

A.M. Best Financial Strength Rating: A

American Family Insurance has an "A" rating from A.M. Best, meaning that the company has an excellent ability to meet their ongoing insurance obligations.

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Allstate Insurance


Features:

Allstate Insurance prides itself on providing great protection with leading-edge tools, expert support from agents, and benefits drivers won't find anywhere else — such as their claim satisfaction guarantee, Drivewise®, Allstate Rewards®, preferred repair services, car buying service, access to their mobile app and QuickTrip. While Allstate is one of the more expensive options for car insurance, it's important to remember that premiums are highly personal and depending on your "risk factors" it might be the best insurance in Colorado for you.

Additional Coverages:

  • Rental reimbursement
  • Sound system insurance
  • Personal injury protection
  • Personal umbrella policy
  • Property protection
  • Class car insurance
  • Ride-sharing coverage
  • Mexico tourist auto insurance

Discounts:

  • Multiple policy
  • Smart student
  • Vehicle discounts (anti-lock breaks, anti-theft, and new car)
  • EZ pay plan
  • Allstate eSmart®
  • FullPay®
  • Early Signing Discount®
  • Responsible payer

Average Price Per Month: $$$

Where to Buy:

A.M. Best Financial Strength Rating: A+

Allstate financial strength ratings are strong and stable across their divisions, which is why A.M. Best rated the company as an A+.

Esurance


Features:

In 2011, Esurance was acquired by Allstate for a cool $1 billion — and the Colorado-based car insurance company has continued to grow ever since. Besides providing the minimum bodily injuries (per person and per accident) and property damage liability insurance that all Colorado drivers must carry, Esurance also offers additional coverages (below) that can provide peace of mind and financial protection should you need to file a claim. Esurance's CoverageMyWay® program is a great way to determine if their policies will provide you and your family with the best car insurance in Colorado.

Additional Coverages:

  • CarMatch Rental Coverage®
  • Custom parts and equipment
  • Auto loan/lease (or "gap")
  • Funeral services payments
  • Towing and labor

Discounts:

  • Anti-theft device
  • Claim-free
  • Defensive driver
  • Fast 5®
  • Good student
  • Homeowners
  • Multi-car
  • Paid-in-full
  • Safety device
  • Multi-policy

Average Price Per Month: $$$

Where to Buy:

A.M. Best Financial Strength Rating: A+

Esurance was recently upgraded to an "A+" rating (from "A-") because it joined the Allstate family.

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Safeco Insurance


Features:

Backed by the financial strength of Liberty Mutual, Safeco Insurance combines a network of independent insurance agents (who will work with you to make sure you get the best coverage for your needs) with the ease and convenience of managing your account online. All Safeco car insurance policies include up to $10,000 in coverage for reimbursement of first aid administered to others after an accident, accident forgiveness, and diminishing deductibles if you remain claim-free.

Additional Coverages:

  • Loan and lease
  • Electronic key and lock replacement
  • CD and DVD replacement
  • New Car Replacement™
  • Audio-visual and custom equipment
  • Pet coverage
  • Personal property

Discounts:

  • Multiple Safeco policies
  • Safe driver
  • Accident prevention course
  • Teen Safety Rewards™
  • Drive less, pay less
  • More than one car
  • Theft deterrents
  • Anti-lock breaks
  • Own your own home
  • Increase your deductible
  • Pay your bill in full

Average Price Per Month: $$

Where to Buy:

A.M. Best Financial Strength Rating: A

Safeco has an excellent "A" rating by A.M. Best for its financial strength. Keep in mind that Safeco is backed by the financial strength of Liberty Mutual Insurance, a Fortune 100 company and one of the largest U.S. corporations.

Progressive


Features:

As the third-largest car insurance company in the United States, Progressive offers insurance for almost anything that has a motor, from commercial car and boat insurance to all-terrain vehicles (ATVs) and snowmobiles. In addition, Progressive also offers other types of insurance through their third-party network of insurance agents, including homeowners, renters, mobile home, condo, flood, business, life, classic car, mechanical repair, travel, wedding and event, pet, ID theft, and insurance for driving in Mexico.

Additional Coverages:

  • Loan/lease payoff
  • Rental car reimbursement
  • Custom parts and equipment value
  • Rideshare coverage
  • Deductible savings bank

Discounts:

  • Multi-car and multi-policy
  • Snapshot® personalized rates
  • Safe driver
  • Homeowner
  • Sign online
  • Online quote
  • Paperless
  • Continuous insurance
  • Teen driver
  • Good student
  • Pay in full
  • Automatic payment setup

Average Price Per Month: $$

Where to Buy:

A.M. Best Financial Strength Rating: A+

Progressive has an "A+" rating from A.M. Best Financial because of its superior ability to meet ongoing insurance obligations.

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USAA Insurance


Features:

As Colorado's second-largest car insurance provider by market share, USAA is only available to members of the U.S. armed forces and their families. If you are in any branch of the military, USAA might have the best car insurance in Colorado for you and your family. Known for its superior customer service and claims process, the only downside to USAA Insurance is that it's only available to verified military members.

Additional Coverages:

  • Rental reimbursement
  • Accident forgiveness
  • Extended benefits

Discounts:

  • Safe driving
  • Defensive driving
  • Driver training
  • Good student
  • New vehicle
  • Multi-vehicle
  • Annual mileage
  • Vehicle storage
  • Family discount
  • Length of membership
  • Military installation
  • No payment plan fees
  • Multiple policy

Average Price Per Month: $$

Where to Buy:

A.M. Best Financial Strength Rating: A++

USAA Insurance rivals State Farm's superior financial strength and has an A++ rating from A.M. Best.

GEICO Insurance


Features:

For over 75 years, GEICO has been combining affordable auto insurance with outstanding customer service and is now the second largest auto insurer in the United States. GEICO provides affordable car insurance rates and is considered the best car insurance in Colorado ideal by drivers that want to save money by managing their policy online.

Additional Coverages:

  • Rental reimbursement
  • Mechanical breakdown
  • Accident forgiveness

Discounts:

  • Vehicle equipment: airbags, anti-lock breaks, anti-theft systems, and daytime running lights
  • Driving history and habits: five-year accident-free good driver and seat belt use
  • Driver's education: defensive driving and education courses and being a good student
  • Affiliation discounts for the military, federal employees, and other groups
  • Customer loyalty discounts are available for multi-vehicle and multi-policy drivers

Average Price Per Month: $

Where to Buy:

A.M. Best Financial Strength Rating: A++

USAA Insurance rivals State Farm's superior financial strength and has an A++ rating from A.M. Best.

The Verdict

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When choosing the best car insurance in Colorado for you and your family, there is no one correct choice for everyone. Car insurance is a highly personalized product that will vary based on your ZIP code, age, driving record, car make/model, credit history. While there isn't a one-size-fits-all car insurance policy, drivers throughout Colorado will always be better off buying more than the bare minimum mandated by the state. Buying too little car insurance leaves you and your family vulnerable to lawsuits and major accident bills, which is why everyone should consider additional coverage types (like collision and comprehensive).

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