For poor drivers, one of the more important factors that are looked at to help calculate the annual cost of car insurance is where you keep your car. Areas with more people or higher crime rates like Pueblo, Aurora, and Lakewood tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims tend to receive slightly lower rates.
The following table ranks the most expensive areas in Colorado for low income drivers to buy an auto insurance policy in.
|Rank||City||Premium Per Year|
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Rate quotes are approximated as the garaging address in Colorado can modify premiums considerably.
Establishing which companies offer the lowest-priced auto insurance rates for low income drivers in Colorado requires a little more sweat in order to find the lowest price.
Each insurer has their own formula to set policy rates, so let's take a look at the most competitive auto insurance companies in Colorado. Keep in mind that Colorado auto insurance rates are impacted by many things that can increase your annual premium. Getting older, getting divorced, or getting a DUI can trigger price changes that can now make some companies more affordable than before.
Find Cheaper Auto Insurance in Colorado
|Rank||Company||Cost Per Year|
|15||Colorado Farm Bureau||$1,624|
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The Hartford offers some of the best car insurance rates in Colorado at around $850 each year. Grange, USAA, Nationwide, and GEICO also are some of the cheaper Colorado insurance companies.
As shown above, if you currently have coverage with Nationwide and switched to The Hartford, you could realize a yearly savings of around $259. Customers with GEICO might save as much as $291 a year, and Auto-Owners customers might reduce prices by as much as $306 a year.
Be aware that those policy rates are averaged across all insureds and vehicles and and are not figured with a rate discount for low income drivers. So the car insurance company that has the lowest price for you may not even be in the top 21 companies shown above. That affirms the importance of why you need to get quotes using your own personal information and vehicle type.
The vehicle on the policy is probably the most important factor when consumers are trying to find economical car insurance for low income drivers. Vehicles with lower acceleration and performance, an excellent safety record, or low incidents of liability claims will cost significantly less to insure than higher performance models.
The table below ranks coverage costs for a handful of the most cost-effective vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$872|
|Honda CR-V LX 4WD||$954|
|Hyundai Elantra GLS Touring Station Wagon||$962|
|Ford Explorer XLT 4WD||$1,068|
|Jeep Wrangler Sahara 4WD 2-Dr||$1,076|
|Toyota Corolla XLE||$1,085|
|Toyota Camry XLE||$1,091|
|Honda Odyssey EX-L W/Rear Entertainment||$1,085|
|Chevrolet Malibu LTZ||$1,104|
|Jeep Grand Cherokee SRT-8 4WD||$1,113|
|Chevrolet Equinox LTZ AWD||$1,104|
|Ford Edge SE AWD||$1,108|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,122|
|Ford Focus SE 4-Dr Sedan||$1,135|
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Price data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include multi-vehicle, multi-policy, safe-driver, homeowner, and claim-free. Rate quotes do not factor in the specific area where the vehicle is garaged which can decrease or increase coverage rates greatly.
Based upon the table data, we can infer that models like the Ford Escape, Honda CR-V, Hyundai Elantra, and Ford Explorer are most likely to be the most budget-friendly vehicles to insure for poor drivers.
Discount Colorado auto insurance rates
Insurers that offer coverage for low income drivers may have premium discounts that can lower rates by as much as 25% or more if you qualify for them. Popular auto insurance companies and a selection of discounts include:
- American Family includes discounts for multi-vehicle, early bird, good student, TimeAway discount, mySafetyValet, and air bags.
- State Farm may offer discounts for good student, Steer Clear safe driver discount, passive restraint, defensive driving training, anti-theft, multiple autos, and Drive Safe & Save.
- 21st Century policyholders can earn discounts including early bird, theft prevention, good student, air bags, student driver, driver training, and automatic seat belts.
- Travelers discounts include multi-car, save driver, early quote, payment discounts, new car, and student away at school.
- GEICO offers discounts for multi-policy, seat belt use, good student, military active duty, federal employee, and anti-theft.
The illustration below illustrates the difference between car insurance costs with and without discounts being applied to the rates. The premium estimates are based on a male driver, no tickets, no at-fault accidents, Colorado state minimum liability limits, full physical damage coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with claim-free, multiple policy, accident-free, homeowner, vehicle safety, and marriage discounts applied. When discounts are factored in, the the average yearly reduction on auto insurance for low income drivers is 28% or $508.
The illustration below demonstrates how deductible levels can influence insurance costs when quoting cheap insurance for low income drivers in Colorado. Data assumes a married male driver, comprehensive and collision coverage, and no additional discounts are factored in.
The data above shows that a 50-year-old driver could cut expenses by $244 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $370 by choosing a $1,000 deductible. Young drivers, like the age 20 example, could shave up to $814 every year just by choosing higher deductibles.
If you make the decision to raise deductibles, it is essential to have spare funds to be able to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Impact of citations and accidents on insurance rates
In a perfect world, the ideal way to enjoy the most affordable auto insurance prices in Colorado for poor drivers is to be a cautious driver and not receive tickets or have accidents. The illustration below demonstrates how speeding tickets and accident claims increase yearly insurance costs for different age categories. The rate quotes are based on a married female driver, comp and collision included, $100 deductibles, and no discounts are taken into consideration.
In the prior example, the average cost of auto insurance in Colorado per year with no accidents and a clean driving record is $1,730. Factor in one speeding ticket and the average cost jumps to $2,011, an increase of $280 each year. Next add two accidents along with the one speeding ticket and the annual cost of auto insurance for low income drivers in Colorado increases to an average of $4,297. That's an increase of $2,567, or $214 per month, just for not paying attention while driving!
Tips for finding cheaper car insurance for low income drivers in Colorado
The list below shows some of the better penny-pinching solutions that can help Colorado drivers locate more affordable car insurance.
- If your vehicles are older, consider dropping full coverage
- Get cheaper liability coverage by choosing a safer vehicle
- Multi-policy discounts save money
- Clean up your credit rating
- Too many claims can make car insurance unaffordable
- Raise your deductibles
- Compare rates regularly to ensure the best deal
The final tip is extraordinarily necessary, as we hit on in this piece. Coverage rates change frequently, so don't be unwilling to buy a different policy if a more affordable rate is found. Many drivers have brand loyalty and that's fine, but it's not a good idea if that loyalty results in overpaying money that could be used for better things. If you have a few minutes, compare prices and find cheaper car insurance for low income drivers.