Wouldn't it be nice if you could know instantly the company that has the cheapest policy rates for drivers under 21? It's not that simple, unfortunately, as there are many unknown factors like what coverage limits you need, if you are married or single, and the crash test ratings of your vehicle, that all impact the cost of coverage. We will touch on the best ways to avoid high prices and will hopefully give you a good beginning to your search for cheaper coverage.
For minors, one of the more important things that aid in calculating the price you pay for insurance is where you normally keep your vehicle. Larger areas like Pueblo, Denver, and Northglenn tend to pay more, whereas areas with less crime or weather claims profit from lower rates.
The information below sorts the highest-priced areas in Colorado for drivers under 21 to purchase a policy in.
|Rank||City||Premium Per Year|
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Information shown are estimated as vehicle location can lower or raise premium rates considerably.
Finding decent, cheap auto insurance is not most people's favorite thing to do, and determining which company has the lowest-priced car insurance rates for drivers under 21 in Colorado will require a bit more work. Policy prices will more than likely be much more than the state average, with the extra cost attributed to the potentially higher risk related to selling coverage for minors, but economical insurance may be achievable if you do a thorough comparison.
Each company has a unique formula to set premium rates, so we need to take a look at the car insurance companies that tend to be cheaper in Colorado. It's a good idea to know that Colorado car insurance rates are based on many factors that may substantially change the price you have to pay. Turning one year older, increasing deductibles, or getting a ticket for running a stop sign may cause policy rate changes that can make some companies more affordable than the competition.
Cheapest Insurance Rates for Minors
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,576|
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The Hartford generally has some of the most affordable car insurance rates in Colorado at around $850 per year. Grange, USAA, Nationwide, and GEICO would also make the list of some of the most economical Colorado car insurance companies.
In the above example, if you are insured with Nationwide and switched to The Hartford, you might see yearly savings of in the neighborhood of $271. Policyholders with GEICO may save as much as $337 a year, and Auto-Owners policyholders might realize rate reductions of up to $342 a year.
Understand that those premiums are averaged for all types of insureds and vehicles and and are not figured with a price increase for drivers under 21. So the car insurance company that is best suited for you may not even be in the top 21 companies in the list above. That emphasizes why you need to compare rates from multiple companies using your own personal information and vehicle type.
The vehicle you are buying coverage for is one of the main factors that determines if you can find affordable auto insurance for drivers under 21. Vehicles with lower performance, good crash test ratings, or a low likelihood of liability claims will cost much less to insure than higher performance models. The next list outlines coverage premiums for a number of the cheapest automobiles to insure in Colorado.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$3,239|
|Honda CR-V EX 4WD||$3,277|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$3,590|
|Ford Explorer XLT 2WD||$3,628|
|Toyota Tacoma 4WD||$3,633|
|Ford F-150 XLT Crew Cab 2WD||$3,628|
|Toyota RAV4 Limited 4WD||$3,845|
|Volkswagen Jetta LE 4-Dr Sedan||$3,853|
|Chevrolet Equinox LT AWD||$3,845|
|Chevrolet Malibu LS||$3,854|
|Chevrolet Silverado LS Extended Cab 4WD||$3,845|
|Dodge Grand Caravan SXT||$3,880|
|Honda Civic LX-S 4-Dr Sedan||$4,021|
|Ford Focus SES 4-Dr Sedan||$4,027|
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Table data represents single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in your specific Colorado location which can change coverage rates greatly.
Looking at the numbers, cars like the Ford Escape, Honda CR-V, and Toyota Prius are most likely to be some of the more affordable vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive anyway just due to the fact that there is more inherent risk for drivers under 21, but in general those particular vehicles will have the cheapest rates compared to all other vehicles.
Should you buy full coverage?
Paying less for car insurance is probably important to the majority of drivers, and a good way to save on the cost of insurance for drivers under 21 in Colorado is to only buy liability insurance. The chart below illustrates the difference between premium costs with full physical damage coverage compared to only buying liability only. The rate quotes are based on a clean driving record, no claims, $250 deductibles, drivers are not married, and no discounts are applied to the premium.
Averaged out for all age groups, physical damage insurance costs $1,845 per year more than just insuring for liability. That is a large expense and it proposes the question if buying full coverage is worth the money. There is no written rule that works best for making the decision to drop full coverage, but there is a general school of thought. If the yearly cost of comp and collision coverage is more than around 10% of the vehicle's replacement cost less your deductible, then you may need to consider dropping full coverage.
There are some scenarios where buying only liability insurance is not financially feasible. If you haven't paid off your loan, you have to keep full coverage in order to satisfy the requirements of the loan. Also, if your finances do not allow you to purchase a different vehicle in the even your car is totaled, you should not consider dropping full coverage.
How violations and accidents impact rates
The obvious way to earn affordable car insurance prices in Colorado for minors is to drive cautiously and avoid accidents and traffic citations. The illustration below demonstrates how traffic citations and at-fault collisions influence insurance costs for each age group. The information is based on a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no other discounts are factored in.
In the prior example, the average cost of a car insurance policy in Colorado per year with a clean driving record and no accidents is $1,410. Add in two speeding tickets and the average cost surges to $1,875, an increase of $465 each year. Then add one accident along with the two speeding tickets and the annual cost of car insurance for drivers under 21 in Colorado increases to an average of $2,347. That's an increase of $938, or $78 per month, just for not being attentive to the road!
The chart below demonstrates how deductibles can raise or lower insurance rates when getting quotes for cheap insurance for drivers under 21 in Colorado. The premiums assume a single male driver, full coverage, and no other discounts are factored in.
In the chart above, a 50-year-old driver could lower their car insurance rates by $290 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $436 by using a $1,000 deductible. Young drivers, such as the Age 20 example, could roll back prices as much as $948 each year by choosing larger deductibles on their policy.
When insureds make the decision to increase the deductibles on their policy, it is necessary to have enough savings set aside to satisfy the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.