One of the more important criteria that are looked at to help calculate the price you pay for insurance is the neighborhood you call home in Denver. Areas with high crime rates or more dense population tend to pay more, whereas more rural areas have the luxury of lower rates.
The illustration below shows the priciest cities in Colorado to purchase car insurance in. Denver ranks #3 with the yearly price of $1,383 for the average insurance policy, which is about $115 monthly.
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Premium costs are comparative as zip code location can affect auto insurance rates considerably.
Now that we see where Denver ranks compared to other cities, establishing which companies have the most affordable insurance rates in Denver may require a little more work than just getting one or two price quotes.
Every insurance company has a proprietary method for setting prices, so let's take a look at the insurance companies that tend to have lower prices in Denver.
Find the Cheapest Car Insurance in Denver
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,624|
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The Hartford normally has some of the cheapest car insurance rates in Denver at around $850 each year. This is $728 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO also rank well as some of the cheapest Denver, CO insurance companies.
In the rate table above, if you are currently insured with Grange and switched to The Hartford, you could earn a yearly savings of around $108. Colorado drivers with USAA might save as much as $159 a year, and Nationwide policyholders might realize rate reductions of up to $259 a year.
To get a quick, customized rate comparison, click here to get a free quote or quote rates from the companies below.
Understand that those estimates are averages across all ages of drivers and types of vehicles and do not factor in a vehicle location in Denver. So the auto insurance company that has the cheapest price for you may not even be in the top 21 companies in the list above. That affirms the importance of why you need to get rate quotes from many companies using your own driver data and vehicle information.
Compare quotes and save
Colorado insurance rates are based on many factors that can increase the cost of your policy. Simply having a birthday, buying another vehicle, or getting caught speeding can produce rate changes that can cause some rates to be more affordable than before. Also, insurers change premium rates every year or even multiple times each year to adjust for unexpected claims or profits. Heavy losses may result in increased rates, while a profitable period may result in cheaper Denver car insurance rates.
For example, the graph below shows rates for the cheapest car insurance in Denver, CO for a 45-year-old female driver with no accidents, a clean driving record, and good financial standing. If we compare prices based on her current risk factors, The Hartford may offer the cheapest car insurance rates in Denver at $1,113 each year. This is $465 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, GEICO, and Nationwide are also on the list of the top five cheapest Denver, CO auto insurance companies.
The example below compares rates after we give the driver from the above example a claim or two, a lower credit rating, and a few traffic violations. Since each auto insurance company has their own formula for determining prices, getting updated rate quotes most likely will result in a different set of affordable Denver car insurance companies as shown below.
Auto-Owners now has the cheapest auto insurance in Denver, CO with State Farm, Grange, American Family, and Progressive now rounding out the top five. This illustrates why it is critical to compare as many rates as possible when trying to get the cheapest car insurance quotes in Denver.
Insurance rates are impacted by many factors and can increase or decrease at any time, so the most affordable company two years ago may now be one of the higher cost companies.
The vehicle that is being insured is one of the largest factors when shopping for the most economical insurance in Denver. Vehicles with lower performance, a plethora of safety features, or a positive history of liability claims will cost less to insure than higher performance models. The table below showcases insurance premiums for some of the most cost-effective automobiles to buy coverage for.
|Vehicle||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$1,328|
|Honda CR-V EX 4WD||$1,555|
|Toyota RAV4 2WD||$1,576|
|Chevrolet Impala LT||$1,581|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$1,605|
|Ford Escape XLS 2WD||$1,631|
|Hyundai Elantra SE Touring Station Wagon||$1,652|
|Ford Edge Sport 2WD||$1,658|
|Jeep Wrangler Sport 4WD 2-Dr||$1,684|
|Jeep Grand Cherokee Limited 2WD||$1,686|
|Nissan Rogue SL 2WD||$1,692|
|Ford Explorer XLT AWD||$1,707|
|Ford F-350 XL Crew Cab Turbo Diesel 2WD||$1,749|
|Honda Odyssey EX||$1,770|
|Kia Optima SX||$1,802|
|Toyota Camry Hybrid||$1,807|
|Chevrolet Malibu Hybrid||$1,804|
|Chevrolet Equinox LT AWD||$1,811|
|Dodge Ram Quad Cab Sport 4WD||$1,833|
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Price data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, multi-vehicle, and claim-free. Rate quotes do not factor in garaging location in Denver, CO which can modify auto insurance rates greatly.
Based upon the table data, models like the Honda Accord, Honda CR-V, Toyota RAV4, and Chevrolet Impala should be the cheapest vehicles to insure for drivers in Denver.
Should you buy full coverage?
Finding cheaper insurance is important to most people, and an effective way to save on the cost of insurance in Denver is to only buy liability insurance. The chart below visualizes the comparison of premium costs with full physical damage coverage compared to only buying the minimum liability limits required in Colorado. The costs are based on no claims or driving citations, $500 deductibles, drivers are not married, and no policy discounts are applied.
If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs $1,656 per year more than just buying liability only. That proposes the question when is it a good idea to stop buying full coverage. There is no set guideline to stop buying comprehensive and collision coverage on your policy, but there is a broad guideline. If the annual cost of comprehensive and collision coverage is more than about 10% of the settlement you would receive from your company, then it's probably a good time to buy liability coverage only.
How to get discounts on Denver insurance rates
Insurance providers that sell policies in Denver could also offer price discounts that could potentially reduce rates by as much as 40% or more if you qualify for them. A few of the larger companies and a selection of discounts are shown below.
- State Farm discounts include safe vehicle, student away at school, anti-theft, multiple policy, and passive restraint.
- Progressive offers discounts for continuous coverage, good student, homeowner, online quote discount, multi-policy, online signing, and multi-vehicle.
- Progressive has discounts for homeowner, online quote discount, online signing, continuous coverage, and multi-vehicle.
- MetLife may offer discounts for claim-free, multi-policy, good driver, defensive driver, accident-free, and good student.
- Farm Bureau may have discounts that include multi-vehicle, youthful driver, good student, driver training, 55 and retired, renewal discount, and multi-policy.
- GEICO offers discounts including defensive driver, multi-vehicle, good student, five-year accident-free, and anti-theft.
- SAFECO may include discounts for accident prevention training, teen safety rewards, bundle discounts, multi-car, and homeowner.
The chart below compares insurance costs with and without discounts applied to the policy premium. The data assumes a female driver, no violations or claims, Colorado state minimum liability limits, comprehensive and collision coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with claim-free, defensive driving course, anti-theft, homeowner, accident-free, and safe-driver discounts applied. When discounts are factored in, the average savings per year on insurance in Denver is 28% or $528.