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.
Find Cheaper Auto Insurance for Teens
|Rank||Company||Cost Per Year|
|15||Colorado Farm Bureau||$1,640|
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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.
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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.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$3,891|
|Honda CR-V EX 4WD||$3,896|
|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.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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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:
- Travelers may have discounts that include early quote, multi-policy, new car, driver training, IntelliDrive, payment discounts, and student away at school.
- 21st Century discounts include teen driver, student driver, 55 and older, driver training, good student, and air bags.
- State Farm offers discounts including passive restraint, Drive Safe & Save, Steer Clear safe driver discount, safe vehicle, multiple policy, and driver's education.
- GEICO includes discounts for anti-lock brakes, air bags, multi-vehicle, defensive driver, federal employee, good student, and five-year accident-free.
- SAFECO has savings for multi-car, anti-theft, teen safety rewards, teen safe driver, and homeowner.
- AAA policyholders can earn discounts including multi-policy, pay-in-full, education and occupation, good driver, good student, and anti-theft.
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.