INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Colorado for 2024

Updated Oct. 19, 2023
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Esurance is generally the cheapest car insurance in Colorado for full coverage policies.

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We aren't sure if it’s the stunning landscapes or the Rocky Mountain oysters, but Colorado is growing rapidly. According to the latest data from the U.S. Census Bureau, the state’s population grew by 14.8% between 2010 and 2020, putting it among the fastest-growing states in the country.

But before packing your bags, it’s a good idea to research how much it will cost to live in the state. And if you need a car, knowing what to expect when it comes to auto insurance premiums is key.

How much you’ll pay for car insurance in Colorado depends on several factors. The average cost of car insurance in Colorado is $1,699 per year, compared to a national average of $1,582.

In this article

Key takeaways

  • The average cost of car insurance in Colorado is $1,699 per year for full coverage.
  • State-minimum coverage averages $744 per year.
  • Young drivers pay $4,829 per year on average.

How much does car insurance cost in Colorado?

Full coverage insurance, which includes comprehensive, collision, and liability coverage, costs an average of $1,699 per year in Colorado, compared to a national average of $1,582. For state-minimum insurance policies, the average annual cost is $744.

The higher cost is in part because Colorado has a high percentage of uninsured drivers. The Insurance Research Council reported that 16.3% of drivers within the state are uninsured.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,699/year $744/year Esurance
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$4,829/year $1,982/year $2,374/year

Average cost of car insurance in Colorado by provider

You can choose from many leading insurers in Colorado. We found that Esurance had the lowest average rates for full coverage and state-minimum policies, costing significantly less than the state average.

By contrast, Progressive had the highest rates for both full and state-minimum coverage.

Provider Full coverage Minimum liability coverage
Allstate $1,705/year $800/year
GEICO $1,270/year $492/year
Nationwide $1,559/year $734/year
Progressive $1,902/year $1,074/year
State Farm $1,235/year $483/year
USAA $1,105/year $315/year

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How does credit score affect car insurance rates in Colorado?

Colorado law allows insurance companies to use credit scores as a determining factor when setting car insurance premiums. Those with poor credit often pay much more than those with good to excellent credit. In fact, we found that those with credit scores under 650 paid nearly double the rate of those with scores over 750.

Credit health Avg. annual premium
Poor (550-649) $3,282/year
Average (650-699) $2,345/year
Good (700-749) $2,021/year
Excellent (750+) $1,729/year

Average car insurance rates for high-risk drivers in Colorado

In Colorado, driving infractions or driving under the influence (DUI) can cause your premiums to skyrocket. On average, one DUI can increase your annual premium by around $1,190, while a single speeding ticket may increase your premium by about $649.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,699/year $2,702/year $1,003
DUI $1,699/year $2,889/year $1,190
Speeding ticket $1,699/year $2,348/year $649

*Assumes clean driving record with good credit

How does age affect car insurance rates in Colorado?

Colorado’s population is relatively young, with a smaller percentage of people over 65. With so many younger people in the state, it may be a relief to find out that there isn’t much discrepancy in premiums between those in their 20s and those in their 60s.

But like other states, Colorado has much higher premiums for teens. Those who are 18 pay about three times the state average.

Age Avg. annual premium
18 $5,486/year
25 $1,878/year
30 $1,813/year
40 $1,833/year
60 $1,827/year

Colorado car insurance rates by city

Densely populated areas with higher crime rates will have higher average premiums than other cities or suburbs. In Colorado, the city with the highest average premium was Aurora. Considering that NeighborhoodScout issued Aurora a crime rating index of three — meaning 97% of cities in the U.S. are safer — the higher premiums are not surprising.

City Avg. annual full-coverage premium
Aurora $2,379/year
Denver$2,240/year
Colorado Springs $2,211/year
Arvada $2,018/year
Westminster $1,842/year
Boulder $1,759/year

CO’s minimum car insurance requirements

Like the majority of states, Colorado requires drivers to have car insurance. The state minimum requirements are as follows:

  • $25,000 for bodily injury for one person
  • $50,000 for bodily injury for two or more people
  • $15,000 in property damage

These coverage limits are low, especially for property damage, so most drivers will likely need additional insurance.

How to save money on car insurance in Colorado

To save money on your car insurance premiums in Colorado, follow these steps:

  • Contact your insurance agent: You may not realize it, but you may qualify for policy discounts. Potential programs you may be eligible for include safe driver, good student, claims-free, or paperless discounts.
  • Increase your policy deductible: The deductible is how much you have to pay for injuries or repairs after a claim before your insurance starts paying the bill. Increasing the deductible will lower your premiums.
  • Improve your credit: Because Colorado allows insurers to use your credit score while setting rates, improving your insurance credit score can help you save money.
  • Shop around: Check out the best car insurance companies and request quotes from several insurers to find out if there is a better deal elsewhere.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in CO

Is car insurance expensive in CO?

Car insurance premiums are more expensive in Colorado than in other states. For full coverage policies, the average cost is $1,699 per year, and state-minimum coverage averages $744 per year.

How much is car insurance per year in CO?

The average cost of car insurance in Colorado is $1,699 per year for full coverage. For state-minimum insurance, the average cost is $744 per year.

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.