The Average Cost of Car Insurance in Colorado

By Coverage Level

The statewide average premium for car insurance in Colorado is $3,215 a year, which is 21 percent more expensive than the national average of $2,660. Minimum coverage, at $824 per year, is also pricier than the national average of $760 per year.

By Company

Premiums can vary widely by insurer. American National, Farm Bureau, State Farm, and USAA have some of the cheapest rates in Colorado.

By Age

Younger drivers tend to pay the highest car insurance rates because they get into more accidents and receive traffic violations compared to the rest of the population.

Here’s the full cost breakdown by age in Colorado:

By City

Your city can also impact your premium. Typically, the more densely populated the city, the higher the rate, as urban areas often have higher accident and theft rates than rural areas.

The most expensive Colorado city for car insurance is Denver, with an average annual rate of $3,296. Residents of Boulder, by contrast, pay just $2,222 per year in comparison — a difference of over $1,000 per year.

By Driving History

Drivers with a poor driving record will notice a sharp increase in their premiums (compared to drivers with clean records), especially those with an at-fault accident or DUI.

By Credit Score

In most states, including Colorado, auto insurers can review your credit history to set your premiums. The better your credit, the lower your premium.

Here are the cheapest car insurance companies in Colorado based on background and demographic.

*Cheapest after USAA

Although rates differ by driver and provider, there are a few best practices you can follow to ensure you’re getting the cheapest rates in Colorado:

1. Compare car insurance quotes from multiple companies before choosing one.
2. Drive a vehicle that’s cheaper to insure. Small SUVs, standard SUVs, and pickup trucks tend to have lower insurance costs.
3. Maintain a good credit score.
4. Switch to a pay-per-mile plan if you don’t drive a lot.
5. Increase your deductibles. This will lower your premiums, though keep in mind you’ll pay more out-of-pocket if you get into an accident.
6. Drive safely. Keeping a clean record helps keep your rates lower, especially over time.

Here are the minimum insurance requirements to drive legally in Colorado:

• Bodily injury liability: $25,000 per person/$50,000 per accident
• Property damage liability: $15,000 per accident¹

Though the minimum requirements are enough to make you road-legal, we recommend increasing your limits above the minimum as much as you can afford to ensure better coverage in case of an accident.

Colorado is an at-fault state that follows the modified comparative negligence rule, which states that if a driver is 50 percent or more at-fault in an accident, they lose their right to receive compensation for any damages.

In Colorado, you’re required to get an SR-22 if you have a history of car accidents, traffic violations, or other serious violations, such as a DUI. An SR-22 is a certificate of financial responsibility that proves you have the minimum insurance requirements to drive in Colorado.

The state may ask you to carry an SR-22 for up to three years, and the DMV can suspend your license if you don’t maintain your SR-22 during that time.²

Although drivers in Colorado pay significantly more than most of the country on average, you can still find affordable insurance by asking your agent about discounts, driving safely, taking advantage of pay-per-mile programs, and comparing quotes from various insurers. When shopping around, make sure each quote has the same limits and coverages so that you’re getting the most accurate rates.

We analyze average premiums in Colorado for full and minimum coverage for good drivers with good credit as well as various driver profiles, including those with DUIs, at-fault accidents, speeding tickets, low credit and households with teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible