Best car insurance companies in Colorado
Fact-checked with HomeInsurance.com
Drivers in Colorado pay a high premium for auto insurance. The average annual full coverage car insurance premium in Colorado is $1,720, which is a bit higher than the national average rate of $1,555 a year. There are several reasons why car insurance rates in Colorado are above average, including:
- Number of uninsured drivers: In Colorado, 13.3% of drivers don’t have insurance.
- Severe weather: Colorado experiences blizzards, flash floods, wildfires and hail storms.
- Growing population: Over the last 20 years, Colorado’s population has grown by more than 1.5 million people.
When it comes to car insurance rates, every driver pays a slightly different premium. A driver could pay more or less than the state-wide average due to their driving record. The table below highlights the average car insurance rates in Colorado for drivers with a clean record, one speeding ticket and one accident:
|Clean record||1 speeding ticket||1 accident|
Top car insurance companies in Colorado
- USAA: Best for military families
- American National: Best for cheap rates
- Progressive: Best for discounts
- Allstate: Best for rideshare insurance
- American Family: Best for customizable coverage
|Company||2019 J.D. Power claim satisfaction score/5||AM Best||Discounts offered||Average rate|
|Allstate||3/5||A+(Superior)||New car, smart student, responsible payer||$1,398|
|American Family||3/5||A(Excellent)||TeenSafeDriver, early bird, young volunteer||$2,361|
|American National||N/A||A(Excellent)||Association membership, multi-policy, advance quote||$925|
|Progressive||3/5||A+ (Superior)||Snapshot program, deductible savings bank, continuous insurance||$3,094|
|USAA||5/5||A++ (Superior)||Length of membership, family discount, annual mileage||$1,388|
USAA: Best for military families
USAA is our top recommendation for active duty military members, veterans and their spouses. It’s one of the highest rated insurance companies on the market, with great customer service, good coverage options and affordable premiums. In Colorado, the average USAA policy costs $1,388 per year, which is far below both the national and state average. To get a policy from USAA, you must meet the military eligibility requirements.
American National: Best for cheap rates
American National offers the most affordable rates for drivers in Colorado. The average annual full coverage premium is $925, which is nearly $800 below the statewide average rate. The company also offers discounts that can further lower your premium. With American National, you can get a cheaper rate for being claims-free, bundling your policies, being a safe driver, buying a new policy before your old one expires and insuring multiple vehicles.
Progressive: Best for discounts
Progressive has the highest annual premium of any company we evaluated, but it also offers some of the best discounts in the industry. Progressive is known for its safe driver program, called Snapshot, which has an average savings of $145. The company also offers steep discounts for students, teen drivers, paying in full, signing online, insuring multiple cars and having continuous insurance.
Allstate: Best for rideshare insurance
Coloradans who drive for rideshare services like Uber or Lyft should include Allstate in their comparison-shopping. With Allstate’s Ride for Hire endorsement, you can fill gaps between your personal car insurance policy and the rideshare company’s policy. Allstate’s rideshare policies are available for just cents per day. And with a personal car insurance policy from Allstate, you get access to extensive coverage options and discounts.
American Family: Best for customizable coverage
Drivers who want to customize their policy based on their needs should also consider American Family. In addition to basic coverage, American Family offers a variety of unique add-on coverages. Drivers can purchase roadside assistance, accident forgiveness, gap insurance, rideshare coverage, OEM coverage, travel coverage, vehicle service coverage and more.
Car insurance in Colorado by city
Car insurance rates are different in every state, but they also vary by ZIP code. The table below indicates the average cost of full and minimum coverage car insurance in major Colorado cities:
|City||Full coverage annual rate||Minimum coverage annual rate|
The average full coverage car insurance premium in Denver is $1,916, which is about $200 more expensive than the statewide average rate of $1,720. Denver is the state’s capital, and also the most populated city. Because there are so many drivers on the road at a given time, the risk for accidents increases — and so do car insurance rates.
Colorado Springs is the second most populated city in Colorado, with nearly 486,000 people. Like Denver, Colorado Springs is a popular place to live. The city has a high population density, which ultimately leads to more traffic accidents. That’s why the average cost of car insurance in Colorado Springs is $1,845 per year — about $125 more expensive than the statewide average.
In Aurora, the average cost of full coverage car insurance is $1,932 per year, making it the most expensive city for car insurance in Colorado. Insurance in Aurora is pricier than average in part because it has a high rate of vehicle thefts. In 2019, there were 2,325 vehicle thefts in the city, which was an increase of 1.2% from the year prior.
The average cost of full coverage car insurance in Fort Collins is $1,493, making it the cheapest city for car insurance in Colorado. Insurance in Fort Collins costs $232 less than the statewide average. Insurance is likely less expensive in Fort Collins because it’s a smaller city, with about 167,000 residents. It also has slightly milder weather than parts of central and southern Colorado.
Lakewood is not considered to be the safest area in Colorado. In 2019 alone, the Lakewood Police Department reported 768 car thefts. There were also 1,112 reported thefts of belongings inside a vehicle. The higher crime rate is one reason why car insurance in Lakewood is more expensive than the statewide average, at a rate of $1,856 per year.
Colorado car insurance considerations
Every year, Colorado gets hit with extreme weather, like blizzards, ice storms and hail storms, as well as natural disasters like wildfire and tornadoes. Colorado drivers who live in areas where extreme weather is more likely will typically pay a higher premium for their car insurance.
Additionally, Colorado drivers pay slightly different rates based on their ZIP code. Areas that have a high crime rate typically have higher car insurance premiums. If you live in a neighborhood that has above-average rates of car theft in particular, expect your car insurance rate to reflect that risk.
Car insurance is legally required in Colorado. In order to drive a car, you must carry at least the state’s minimum required coverage. Otherwise, you could get cited and face serious consequences, including fines and license suspension.
Colorado minimum liability requirements
In Colorado, the minimum car insurance requirement for all drivers is 25/50/15. However, it’s recommended to purchase more coverage than the minimum amount. Here is what 25/50/15 car insurance includes:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
How we chose the best car insurance providers in Colorado
To choose the best car insurance companies in Colorado, Coverage started by finding the largest carriers in the state. From there, we closely reviewed each company based on industry ratings, discounts offered, coverage options, customer service and average premiums. Each provider is given a superlative based on the features that differentiates it among carriers.
Other car insurance providers in Colorado to consider
In addition to the top providers on our list, here are some other carriers to consider when shopping for car insurance in Colorado:
|Company||2019 J.D. Power claim satisfaction score/5||AM Best||Discounts offered||Average rate|
|Auto-Owners||3/5||A++(Superior)||Safety features, green discount, life multi-policy||$1,599|
|GEICO||3/5||A++(Superior)||Military, federal employee, emergency deployment||$1,079|
|Farmers||3/5||A-(Excellent)||Claims-free, multi-policy, safe driver||$1,958|
|State Farm||3/5||A++ (Superior)||Safety features, driver training, Steer Clear program||$1,738|
Auto-owners is a highly rated insurance company that offers great coverage options and discounts. The company has excellent financial strength and its premiums are below average compared to the state-wide average rate.
Geico is known for offering affordable car insurance rates to all drivers. Its average premium in Colorado is $1,079 per year. However, the coverage is very basic compared to others in the industry and it lacks the customization options that other providers offer.
Farmers insurance’s premiums are on the higher end, with an average rate of $1,958 per year for full coverage. However, the company stands out for offering extensive coverage options, including some unique add-ons like spare parts coverage, full windshield and glass coverage and guaranteed value coverage.
State Farm’s average annual premium for full coverage is $1,738, which is on par with the average rate in Colorado. The company stands out for its coverage options, discounts and online resources. State Farm also has one of the best insurance mobile apps for on-the-go claims and payments.
Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-old male and female with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.