Locating cheap insurance is challenging, and finding out which company has the cheapest car insurance rates for 16 year olds in Colorado will involve more quotes for comparison. Policy prices will probably be significantly more expensive than the state average because of the additional risk that comes with offering coverage for new drivers, but competitively-priced insurance may be possible if you compare enough companies. Each company uses a little different formula to determine rates, so let's take a look at the car insurance companies with the most affordable rates in Colorado.

It's a good idea to know that Colorado car insurance rates are calculated based on many things which can substantially decrease or increase the cost of having a policy. This price fluctuation is why it is important to compare rates to find the cheapest insurance quotes for 16 year olds. Insurance rates are calculated by many risk factors and change substantially, so the lowest-price company the last time you shopped your coverage around may now be an over-priced policy.

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Cheapest insurance companies in Colorado
Rank Company Cost Per Year
1 The Hartford $825
2 Grange $958
3 USAA $1,009
4 Nationwide $1,121
5 Auto-Owners $1,156
6 Travelers $1,171
7 GEICO $1,187
8 State Farm $1,222
9 American Family $1,275
10 Progressive $1,322
11 Amica $1,381
12 Allied $1,439
13 California Casualty $1,458
14 Farmers $1,629
15 Colorado Farm Bureau $1,640
16 MetLife $1,885
17 Allstate $1,994
18 Encompass $2,231
19 Safeco $2,472
20 Titan $2,738
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The Hartford normally has some of the cheapest car insurance rates in Colorado at around $825 a year. This is $753 less than the average rate paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners also rank well as some of the most economical Colorado auto insurance companies.

In this example, if you buy coverage from USAA and switched to The Hartford, you may realize a yearly price reduction of about $184. Colorado drivers with Nationwide may save as much as $296 a year, and Auto-Owners customers might lower prices by $331 a year.

Remember that these estimates are averages across all ages of drivers and types of vehicles and do not factor in a price increase for 16 year olds. So the auto insurance company that has the cheapest rates for you may not even be in the list above. That illustrates why you need to compare rates from multiple companies using your own specific driver information and vehicle.

For new drivers, one of the largest components that determine car insurance rates is where you normally keep your vehicle in Colorado. Areas with a lot of weather claims or more people like Pueblo, Commerce City, and Lakewood tend to have higher rates, whereas areas with less people or fewer weather incidents have the luxury of cheap car insurance rates.

The next table ranks the most expensive cities in Colorado for 16 year olds to buy auto insurance in.

How much does car insurance cost in Colorado?
Rank City Annual Rate
1 Pueblo $1,440
2 Denver $1,397
3 Commerce City $1,368
4 Aurora $1,361
5 Lakewood $1,324
6 Ken Caryl $1,313
7 Thornton $1,307
8 Security-Widefield $1,304
9 Northglenn $1,303
10 Westminster $1,284
11 Centennial $1,278
12 Colorado Springs $1,277
13 Highlands Ranch $1,267
14 Castle Rock $1,261
15 Arvada $1,256
16 Littleton $1,254
17 Brighton $1,235
18 Parker $1,220
19 Broomfield $1,203
20 Boulder $1,159
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Price information shown is estimated as specific Colorado garaging address can alter price quotes substantially.

The vehicle model that needs insurance is a significant factor when comparing economical auto insurance for 16 year olds. Vehicles with high performance engines, poor safety ratings, or a high likelihood of having liability claims will cost quite a bit more to insure than safer models. The list below showcases coverage rates for a handful of the cheapest automobiles to insure.

Cheapest Vehicles to Insure for 16 Year Olds in Colorado
Make, Model, and Trim Level Estimated Cost for Full Coverage
Ford Escape XLT 4WD $3,891
Honda CR-V EX 4WD $3,896
Toyota Prius $4,162
Honda Odyssey LX $4,296
Jeep Wrangler Rubicon 4WD 2-Dr $4,334
Chevrolet Impala LT $4,570
Toyota RAV4 Sport 2WD $4,577
Chevrolet Malibu Hybrid $4,570
Nissan Altima 2.5 4-Dr Sedan $4,576
Ford Explorer Limited 4WD $4,605
Ford F-150 XLT Crew Cab 4WD $4,615
Dodge Grand Caravan SXT $4,605
Honda Civic VP 4-Dr Sedan $4,767
Toyota Corolla LE $4,805
Toyota Tacoma X-Runner 2WD $4,810
Hyundai Elantra SE 4-Dr Sedan $4,805
Ford Edge Sport 2WD $4,813
Jeep Grand Cherokee SRT-8 4WD $4,841
Chevrolet Equinox LTZ AWD $4,848
Volkswagen Jetta 2.0T 4-Dr Sedan $4,841
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Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in Colorado location which can change prices substantially.

Based upon the table data, you can infer that cars like the Ford Escape, Honda CR-V, and Toyota Prius are most likely going to be some of the cheapest vehicles to insure for new drivers. Car insurance rates will tend to be more expensive anyway just due to the fact that there is more inherent risk for 16 year olds, but in general those makes and models will have the lowest insurance prices possible.

Choosing a high-quality auto insurance provider is hard considering how many companies there are in Colorado. The company ratings in the next section could help you pick which providers to look at purchasing a policy from.

These rankings are only made up of companies that insure vehicles across America, so companies without a large exposure will not be included in the list. To check prices from these and other competitive companies, click here.

Best Car Insurance Companies for 16 Year Olds in Colorado
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
USAA 98 100 100 94% A++ 98.6
American Family 98 89 100 86% A 95.4
State Farm 88 93 96 90% A++ 92.4
The Hartford 94 92 90 89% A+ 91.7
AAA Insurance 88 89 95 91% A 91.2
GEICO 84 93 93 89% A++ 90.3
The General 89 91 89 88% A- 90
Titan Insurance 90 87 91 95% A+ 89.6
Progressive 84 91 93 87% A+ 89.5
Allstate 85 90 92 88% A+ 89.3
Nationwide 87 88 84 90% A+ 88.7
Liberty Mutual 84 87 93 88% A 88.5
21st Century 85 86 87 88% A 86.7
Esurance 85 80 95 87% A+ 85.9
Safeco 85 85 85 86% A 85.8
Travelers 80 87 87 83% A++ 85.2
Farmers Insurance 78 87 88 79% A 84.3
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Data Source: Insure.com Best Car Insurance Companies

How to get discounts on Colorado auto insurance rates

Auto insurance companies that sell policies for 16 year olds may also provide price discounts that could reduce prices by as much as 40% or more if you meet specific eligibility requirements. Large car insurance companies and some of the discounts include:

The diagram below shows the difference between insurance rates with and without discounts applied to the policy premium. The information is based on a female driver, no accidents or driving violations, Colorado state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with passive restraint, continuous coverage, vehicle safety, good student, paid-in-full, and anti-theft discounts applied. When these discounts are applied, the average amount saved each year on car insurance for 16 year olds is 28% or $566.

The diagram below illustrates how your deductible choice can influence yearly insurance costs when trying to find cheap insurance for 16 year olds in Colorado. The rate quotes are based on a married female driver, full coverage, and no policy discounts are applied.

As shown above, a 30-year-old driver could cut expenses by $280 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $422 by selecting a $1,000 deductible. Younger drivers, like the age 20 example, can save up to $594 every year by selecting a higher deductible.

If you do raise deductibles, it is essential to have enough spare savings to be able to cover the extra out-of-pocket expense, which is the one shortcoming of high deductibles.