Updated: October 31, 2024
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Our sample driver, a 40-year-old with a full coverage policy and clean record, pays an average of $1,450 per year in Colorado. This rate is $26 more expensive than the national average of $1,424 per year.
There are many reasons car insurance is expensive in Colorado, including the state's population density, highway density, the number of uninsured drivers and vehicle theft rates. Car insurance costs can also be affected by your age, driving record, credit score or the type of car you drive.
Colorado residents pay roughly $1,450 per year for car insurance, higher than the national average.
Colorado's high rates of vehicle theft and large amounts of people living in urban areas contribute to the cost of insurance in the state.
You can reduce your insurance costs by comparing quotes from several providers and seeking available discounts.
Several factors contribute to Colorado’s expensive auto insurance rates. These include its population density, highway density, uninsured driver rates and vehicle theft rates. MoneyGeek explored these to help you understand your costs.
86% of Colorado’s population lives in urban neighborhoods, which increases car insurance rates in the state. Densely populated areas tend to have higher rates of vehicle theft and vandalism. More people also increase the likelihood of injuries or fatalities from car accidents. Insurance companies consider these factors and charge higher rates accordingly.
There are 7.1 million miles driven per highway mile in Colorado, just slightly lower than the national average of 7.5. Denser highways mean more traffic and accidents and increase the likelihood of claims. Auto insurance companies compensate for the large volume of claims by increasing insurance rates for drivers in the area.
In Colorado, uninsured motorists make up 16% of drivers on the road, higher than the national average of 12.6%. Insurance companies consider the added costs if one of their policyholders gets into an accident with an uninsured driver, raising the overall cost of premiums.
How much you pay for car insurance can be affected by the crime rates in your neighborhood. In Colorado, there were 384 instances of motor vehicle theft per 100,000 people in the most recent year in which data was available. More stolen cars in an area mean costlier claims, so insurers tend to charge higher rates for those areas.
There are controllable and uncontrollable factors that influence the cost of your car insurance. The factors mentioned above affect the overall cost of premiums in Colorado. Several individual factors like a driver’s location, age, driving record, credit score, insurance provider and car model affect individual quotes.
The cost of your car insurance in Colorado can be affected by where you live. Pueblo is the most expensive city in Colorado and costlier than the state average, with an annual average of $1,518. Fort Collins is the cheapest city in the state, with an average yearly premium of $1,112.
Location | Annual Premium |
|---|---|
Colorado’s State Average | $1,450 |
Arvada | $1,318 |
Aurora | $1,512 |
Boulder | $1,221 |
Centennial | $1,370 |
Colorado Springs | $1,407 |
Denver | $1,447 |
Fort Collins | $1,112 |
Greeley | $1,156 |
Lakewood | $1,459 |
Pueblo | $1,518 |
Thornton | $1,357 |
Westminster | $1,344 |
Your car insurance provider can have a significant impact on your rates. It’s smart to shop around to get the cheapest car insurance in Colorado or the best car insurance in Colorado. You can use MoneyGeek’s Colorado car insurance calculator to estimate how much you’ll need to pay for coverage.
Your age is important in determining your annual premiums. Younger drivers usually face higher rates because they’re considered riskier to insure. Rates also tend to increase for drivers 65 and older.
State | Average Driver (40-Year-Old) | 16-Year-Old | 25-Year-Old |
|---|---|---|---|
Colorado | $1,450 | $3,819 | $1,493 |
Drivers with clean records usually have lower rates than those with violations. Your premiums can also change depending on the severity of a violation. For instance, having a DUI on your record can increase your rate to $2,187 per year in Colorado, while a speeding ticket might mean an annual premium amount of $1,701.
State | No Violation | Speeding Ticket | Accident | DUI |
|---|---|---|---|---|
Colorado | $1,450 | $1,701 | $2,080 | $2,187 |
Poor credit can result in more expensive car insurance rates. In Colorado, a driver with a low credit score will spend an average of $2,515 per year on car insurance. Someone with excellent credit might pay $1,211 per year on average.
State | Excellent Credit Score | Fair Credit Score | Poor Credit Score |
|---|---|---|---|
Colorado | $1,211 | $1,781 | $2,515 |
The value of your car affects the cost of your insurance. Insurers consider variables like possible costs of repairs, the likelihood of theft and engine size when calculating your rates. As a result, sports cars and high-value cars are more expensive to insure. You can check how your vehicle's make and model affect your insurance costs with MoneyGeek’s auto insurance calculator.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Nov 14, 2024
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There are ways to lower your auto insurance rates in Colorado. Those include bundling multiple policies or dropping unnecessary coverage. You can take several steps to reduce your car insurance costs.
Compare quotes from different providers.
Insurers tend to calculate rates differently. That’s why it’s best to gather and compare quotes from at least three insurance providers to get the best rates and coverages to suit your needs.
Bundle your policies.
By bundling multiple policies from the same provider, you can save significant amounts on your premiums.
Check out available discounts.
Car insurance companies commonly offer discounts. You may save for being a good driver, driving fewer miles or installing anti-theft devices in your vehicle. Available discounts vary by state and provider, so ask your insurer what discounts you qualify for.
Raise your deductible.
Your deductible is the amount you pay out-of-pocket when you file a claim. The higher your deductible, the lower your premium, but you will also pay more after an accident.
Consider pay-per-mile insurance.
You may benefit from pay-per-mile insurance if you don’t drive a lot. Insurance companies use the number of miles you drive to calculate what you pay in monthly premiums. The less you drive, the lower your insurance rates.
Drop unnecessary coverage.
Dropping comprehensive coverage is practical if your premiums are worth more than 10% of your car’s cash value. It’s good to review how much coverage you need to avoid being underinsured.
By reading the answers to these commonly asked questions, you can better understand why the price of car insurance is so high in Colorado.
Colorado’s expensive auto insurance rates are affected by its population density, highway density, uninsured driver rates and vehicle theft rates.
The average cost of car insurance in Colorado is $1,450 per year.
Your car insurance rates in Colorado can increase due to your location, age, driving record, credit score, insurance provider and car model.
GEICO offers the best auto insurance rates in Colorado, at an average annual cost of $872.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
