Trying to find cost effective insurance is not easy, and figuring out which company has the most affordable car insurance rates for low mileage drivers in Colorado will require even more shopping around. Each auto insurance company uses different criteria for setting prices, so we'll go over the car insurance companies with the overall best prices in Colorado.
Find Cheaper Car Insurance in Colorado
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,576|
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The Hartford quotes some of the lowest car insurance rates in Colorado at around $834 annually. Grange, USAA, Nationwide, and GEICO would also be considered some of the cheapest Colorado insurance companies.
As shown above, if you currently have a policy with Nationwide and switched to The Hartford, you could realize yearly savings of about $275. Colorado drivers with GEICO might save as much as $318 a year, and Auto-Owners customers might reduce prices by as much as $370 a year.
To find cheaper insurance rates for your vehicle, click here or feel free to get quotes from the companies below.
These prices are averaged across all ages of drivers and types of vehicles and and are not calculated with a price discount for low mileage drivers. So the car insurance company that has the cheapest price for you may not even be in the list above. That point stresses why you need to compare prices as often as possible using your own driver data and vehicle information.
One of the more important criteria that help determine auto insurance rates is where you keep your car in Colorado. Regions with more people or even just more weather-related claims like Pueblo, Aurora, and Commerce City likely pay more, whereas areas with less crime or weather claims profit from lower rates.
The next table ranks the most expensive places in Colorado for low mileage drivers to buy an auto insurance policy in.
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Information shown are estimated as specific Colorado garaging address can impact prices greatly.
Discounts on Colorado auto insurance
Insurance companies that offer coverage for low mileage drivers may have premium discounts that can lower rates by 30% or more if you are eligible. Companies and a summarized list of policyholder discounts are included below.
- State Farm may offer discounts for accident-free, multiple autos, student away at school, Drive Safe & Save, and Steer Clear safe driver discount.
- Liberty Mutual offers discounts for multi-policy, newly married, hybrid vehicle, exclusive group savings, and new graduate.
- American Family includes discounts for good driver, Steer into Savings, bundled insurance, TimeAway discount, and air bags.
- Progressive may include discounts for good student, online signing, homeowner, multi-vehicle, online quote discount, continuous coverage, and multi-policy.
- Farmers Insurance discounts include mature driver, bundle discounts, early shopping, youthful driver, business and professional, electronic funds transfer, and pay in full.
- Auto-Owners Insurance offers premium reductions for paperless, student away at school, safe vehicle, multi-policy, multiple vehicles, mature driver, and air bags.
- SAFECO has discounts for bundle discounts, teen safety rewards, homeowner, safe driver, anti-lock brakes, and teen safe driver.
The chart below shows the comparison of insurance costs with and without discounts being applied to the rates. The rate quotes are based on a female driver, no violations or claims, Colorado state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with claim-free, passive restraint, multiple vehicle, marriage, safe-driver, and anti-theft discounts applied. When discounts are applied, the average savings per year on car insurance for low mileage drivers is 28% or $437.
Rate increases following a ticket or accident
The common sense way to obtain the cheapest car insurance premiums for infrequent drivers is to be a good driver and maintain a clean driving record. The information below shows how traffic citations and at-fault claims influence insurance prices for different insured age categories. The rates are based on a single male driver, full coverage, $1,000 deductibles, and no discounts are applied to the premium.
In the previous chart, the average cost of car insurance in Colorado per year with no violations or accidents is $1,476. Factor in two speeding tickets and the average cost hikes up to $1,940, an increase of $464 each year. Then add in two accidents along with the two speeding tickets and the 12-month cost of car insurance for low mileage drivers in Colorado goes up to an average of $3,888. That's an increase of $2,412, or $201 per month, just for not driving safely!
Why are you paying too much for car insurance?
Colorado car insurance rates are impacted by many factors that will increase or decrease the policy premium. Simply getting older, having a teen driver, or getting a driving violation can trigger rate changes that can cause some rates to be cheaper than competitors.
Also, insurance companies change the rates they charge in Colorado without warning in order to remain profitable. Larger than normal claims can cause higher prices, while a profitable period can produce cheaper Colorado car insurance rates.
To illustrate this example, the data below shows the company with the cheapest car insurance in Colorado for a 45-year-old male driver with no accidents or violations, and good financial standing. Based on his personal risk profile, The Hartford has the cheapest car insurance rates in Colorado at $834 a year. This is $744 less than the average rate paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners are also on the list of the cheapest Colorado auto insurance companies.
Now we will pretend the driver in the first example a claim or two, bad credit, and a few traffic violations. Since each company has a different formula for setting prices, comparing insurance quotes could now result in a different ranking of affordable Colorado car insurance companies as shown below.
Travelers now has the best auto insurance rate in Colorado with State Farm, American Family, Grange, and Progressive now rounding out the top five. This example demonstrates why Colorado drivers need to compare many different companies to get the most affordable car insurance rates for low mileage drivers. Insurance rates are determined by many factors and change substantially, so the cheapest company six months ago may now be an over-priced policy.