The make and model of vehicle requiring insurance is probably the largest consideration that determines whether or not you find the most affordable coverage for drivers with bad credit. Vehicles with lower performance, an excellent safety record, or a positive history of liability claims will cost substantially less to insure than fast, unsafe models. The next table illustrates auto insurance prices for some of the most economical vehicles to buy insurance for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$860|
|Honda CR-V LX 4WD||$868|
|Hyundai Elantra GLS Touring Station Wagon||$860|
|Ford Escape XLT 4WD||$879|
|Ford Explorer XLT AWD||$961|
|Chevrolet Impala LS||$994|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$1,051|
|Ford Edge SE 2WD||$1,080|
|Chevrolet Equinox LTZ 2WD||$1,085|
|Ford F-150 XL Crew Cab 2WD||$1,101|
|GMC Sierra Denali Crew Cab 4WD||$1,158|
|GMC Sierra 2500HD SLE Regular Cab 2WD||$1,164|
|Dodge Grand Caravan SXT||$1,186|
|Toyota Camry SE||$1,223|
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Price data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, claim-free, homeowner, multi-vehicle, and multi-policy. Price estimates do not factor in Colorado location which can lower or raise auto insurance rates noticeably.
Looking at the data, vehicles like the Honda Accord, Honda CR-V, Hyundai Elantra, Ford Escape, and Ford Explorer are a few of the most affordable vehicles to insure for people with poor credit. The cost of auto insurance will tend to be more expensive because of the fact that there is more risk for drivers with bad credit, but overall those makes and models will have the cheapest rates compared to other types of vehicles.
One of the more important factors that are used to help calculate car insurance rates is the neighborhood you call home in Colorado. More densly populated places like Pueblo, Aurora, and Northglenn tend to pay slightly more, whereas less populated areas have the luxury of lower rates.
The table below sorts the priciest cities in Colorado for drivers with bad credit in which to purchase auto insurance.
|Rank||City||Average Per Year|
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Rate quotes are approximated as specific location information can lower or raise insurance rates noticeably.
Finding decent, affordable auto insurance is not easy, and finding out which companies offer the lowest-priced car insurance rates for drivers with bad credit in Colorado will involve even more shopping around. Coverage rates could be somewhat pricier than the state average attributed to the extra risk related to selling insurance for people with poor credit, but competitively-priced coverage should be possible if you compare enough companies. Every car insurance company has a unique approach for determining rates, so let's take a look at the car insurance companies that tend to have lower prices in Colorado.
We do need to point out that Colorado car insurance rates are influenced by many factors that may substantially change the price of coverage. This price fluctuation is why Colorado drivers need to compare as many rates as possible to find affordable car insurance quotes for drivers with bad credit. Auto insurance prices consist of many things and can increase or decrease at any time, so the cheapest rate when you last compared rates may now be one of the more expensive options.
Find Cheaper Car Insurance with Bad Credit
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,624|
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The Hartford has some of the cheapest car insurance rates in Colorado at around $825 annually. Grange, USAA, Nationwide, and Auto-Owners also rank well as some of the cheaper Colorado auto insurance companies.
As illustrated above, if you are currently insured with Nationwide and switched to The Hartford, you might realize an annual premium reduction of in the vicinity of $318. Colorado drivers with Auto-Owners might save as much as $343 a year, and GEICO policyholders might see rate reductions of $351 a year.
To find out how your current rates compare, click here to get quotes or click through to the companies below.
These policy prices are averages for all drivers and vehicles and are not factoring in a price surcharge for drivers with bad credit. So the car insurance company that can offer the best rates for your situation may not even be in the list above. That underscores the importance of why you need to get quotes using your own driver and vehicle profiles.
Selecting a highly-rated insurance company can be difficult considering how many choices there are in Colorado. The information in the next section could help you pick which car insurance providers you want to consider when insurance shopping for drivers with bad credit.
The ratings below are only made up of the largest companies in America, so companies that only write business in Colorado or surrounding areas will not be included in this list. If you wish to compare rates from these and other competitive companies, simply click here.
Top 10 Large Auto Insurance Providers Overall in Colorado
- American Family
- State Farm
- The Hartford
- AAA Insurance
- The General
- Titan Insurance
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Car insurance companies that provide policies for drivers with bad credit could also offer discounts that could reduce prices by 40% or more if you are eligible. A few of the larger companies and some of the premium reductions they offer include:
- GEICO offers discounts for emergency military deployment, membership and employees, multi-vehicle, anti-lock brakes, and seat belt use.
- Travelers may include discounts for good student, save driver, continuous insurance, student away at school, home ownership, and hybrid/electric vehicle.
- Farm Bureau offers discounts including driver training, safe driver, good student, multi-vehicle, youthful driver, renewal discount, and multi-policy.
- Liberty Mutual may have discounts that include new graduate, new move discount, exclusive group savings, new vehicle discount, and newly retired.
- American Family includes discounts for multi-vehicle, TimeAway discount, mySafetyValet, good driver, good student, bundled insurance, and early bird.
- Progressive policyholders can earn discounts including multi-vehicle, online signing, good student, multi-policy, continuous coverage, and online quote discount.
The diagram below illustrates the difference between insurance premiums with and without discounts applied. The costs are based on a male driver, no claims, a clean driving record, Colorado state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with accident-free, multiple policy, defensive driving course, safe-driver, claim-free, and marriage discounts applied. When discounts are applied, the average savings per year on car insurance for drivers with bad credit is 28% or $508.
Comparison of full coverage and liability-only policies
Saving money when shopping for car insurance should be important to most drivers, and one easy way to pay lower rates for insurance for drivers with bad credit in Colorado is to only pay for liability coverage. The illustration below compares auto insurance costs with full coverage compared to only the Colorado minimum liability coverage. The information is based on no claims or driving citations, $250 deductibles, single marital status, and no discounts are applied.
If we average the cost for all age groups, full coverage on your policy costs $2,465 per year more than insuring for liability only. A very common question is if buying full coverage is worth the money. There is no exact formula to stop paying for comprehensive and collision coverage on your policy, but there is a broad guideline. If the annual cost of coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
For example, let's pretend your vehicle's replacement value is $11,000 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company would pay you is $10,000 after the deductible is paid. If premium cost is more than $1,000 a year for your policy with full coverage, then it may be the right time to buy liability only.