What you need to know about car insurance in Colorado

Colorado is one of the fastest-growing states in the nation. The influx of new residents means more cars on the road and, consequently, more insurance claims for accidents, thefts, and hail damage. Not surprisingly, the cost of car insurance in Colorado for some drivers is higher than the national average.

First, the good news: The cost of a liability car insurance policy that meets the state’s minimum coverage requirements is less than the national average: $413 per year versus $503 nationwide, a difference of about 18%.

Full coverage car insurance – which protects your own vehicle with comprehensive insurance and collision insurance – is less affordable when compared to the U.S. as a whole. Coloradans pay an average of $2,337 annually, about 19% higher than the national average of $1,897..

Car insurance premiums vary significantly, so it pays to shop around. With over 300 insurers in the state, understanding the state's insurance requirements and typical costs can help you find the best deal.

Key highlights

• Colorado drivers must have liability car insurance with minimum coverage limits of 25/50/15.
• A full coverage car insurance policy in Colorado costs $2,337 annually, about 19% more than the U.S. average.
• A liability-only policy that meets state requirements for coverage costs $413 annually,l 18% less than the national average.

Understanding car insurance requirements in Colorado

Drivers in Colorado must have valid car insurance, and their policies must meet the following liability coverage minimums:

• $25,000 for bodily injury to any one person in an accident
• $50,000 for bodily injury to all persons in an accident
• $15,000 for property damage

Usually written as 25/50/15, these coverage limits align with many other states' minimum liability requirements. However, this amount of coverage will be insufficient if you’re involved in a major at-fault accident. Experts say you should purchase liability insurance with coverage limits of at least 100/300/100 if you can afford it.

Average cost of car insurance in Colorado

The cost of car insurance in Colorado depends on many factors, including the kind of coverage you have. The average price of a liability-only policy that meets state minimum coverage requirements is $413 per year, $90 less than the national average. However, the premium for a full coverage auto insurance policy in Colorado is $2,337 annually, more than $400 higher than the national average.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and $500 comprehensive and collision deductibles.

How to find cheap auto insurance in Colorado

With the cost of car insurance rising, many drivers are comparison shopping to find the cheapest coverage. Here are a couple of ways you can save money on your policy:

• Enroll in a usage-based insurance (UBI) program. UBI monitors your driving habits with a phone app or an in-car telematics device. If you drive carefully and limit your miles, you could see a reduction in your premium. In Colorado, several insurers, including Liberty Mutual and State Farm, offer telematics insurance programs.
• Ask about discounts. Every carrier offers car insurance discounts. Some of the most common options are bundling (insuring your vehicle and home with the same insurer), switching to paperless billing, maintaining good grades if you’re a student, and more. As your agent or representative about what discounts you may qualify for.
• Consider the vehicle you drive: If you’re shopping for a new automobile, look for a model with a high safety rating from the Insurance Institute for Highway Safety (IIHS) or the National Highway Traffic Safety Commission (NHTSC). Both institutions conduct rigorous, impartial testing of cars, trucks, and SUVs and issue ratings based on their crashworthiness; insurers consider this when setting rates.

Car insurance rates, by company, in Colorado

The difference in premiums between insurers is substantial. In Colorado, Geico has the cheapest average premium for full coverage at just $1,445 annually. At the other end of the spectrum, Acuity Insurance averages $3,769, 61% higher than the state average.

Comparing car insurance quotes in Colorado

To help you understand how your specific circumstances might impact what you pay for coverage, here are some average auto insurance rates in Colorado.

Colorado car insurance cost by city

Where you live plays a major role in how much you pay for car insurance. Densely populated areas with more drivers on the road have higher incidence rates of accidents, so they tend to be more expensive. Areas with high rates of property crime tend to have higher premiums, too.

Residents of Lakewood, a Denver suburb, pay the highest premiums, averaging $2,492 per year, about 7% higher than the state average. By contrast, residents of Fort Collins pay $2,209 — $128 less than the state average.

Frequently asked questions

How can I save on car insurance in Colorado?

If you’ve already taken advantage of common carrier discounts like bundling your auto and homeowners policies, switching to paperless billing, maintaining a clean driving record, and limiting the number of miles you drive, you haven’t exhausted your ways to spend less on car insurance.

Consider these additional savings strategies:

• Pay in full. Many Colorado insurers offer discounts to policyholders who pay for their premiums in one lump sum, rather than in monthly installments. Depending on the insurer, you could save anywhere from 5% to 15%.
• Apply for driver education and training discounts. In Colorado, drivers 55 and older or those who are under the age of 21 who complete qualifying driving education or training courses can qualify for special discounts.
• Shop around: Even if you’re satisfied with your insurer, it’s a good idea to compare car insurance rates every six to 12 months. Your coverage needs may have changed, and you may no longer be getting the best deal possible. Experts say you should compare rates from three to five different companies to find the right deal.

Is Colorado a no-fault state?

No, Colorado is not a no-fault state; it switched to a tort-based system in 2003. This means if you’re in an accident and not responsible, you will file a claim with the at-fault driver’s insurance for damages. If you are the driver at fault, liability insurance will not cover your own injuries or property damage.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.