Figuring out which company quotes the most affordable car insurance rates for drivers under 25 in Colorado will require a bit more work than just picking a company at random. Every insurance provider has a unique approach for determining rates, so we'll go over the lowest cost car insurance companies in Colorado.
It's important to know that Colorado car insurance rates are impacted by many things which can substantially change the price you have to pay for coverage. Simply turning a year older, having a teenage driver, or getting a ticket for running a stop sign can produce rate changes that can now make some companies affordable when they were higher priced.
Best Car Insurance Prices for Young Drivers
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,624|
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The Hartford quotes some of the cheapest car insurance rates in Colorado at around $859 per year. This is $719 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners also are some of the cheapest Colorado car insurance companies.
As illustrated above, if you currently have coverage with Nationwide and switched to The Hartford, you could see an annual premium reduction of in the neighborhood of $296. Policyholders with Auto-Owners may save as much as $309 a year, and GEICO insureds might lower prices by up to $328 a year.
It's important to note that these estimates are averaged for all types of drivers and the different vehicles they drive and and are not calculated with a rate surcharge for drivers under 25. So the company that can offer you the best price may not even be in the top 21 companies in the list above. That affirms the importance of why you need to quote rates from many companies using your own specific driver and vehicle information.
One of the many things that determine auto insurance rates is your address. Areas with more people or higher crime rates like Pueblo, Lakewood, and Commerce City tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents can boast about having cheaper rates.
The following table rates the most expensive areas in Colorado for drivers under 25 to buy car insurance in.
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Price information shown is comparative as the specific geographic location can increase or decrease premiums noticeably.
The vehicle to be insured is probably the most important factor in finding the most economical car insurance for drivers under 25. Vehicles with lower acceleration and performance, good crash test ratings, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models.
The data below estimates coverage rates for some of the most economical vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$2,255|
|Honda CR-V EX-L 2WD||$2,289|
|Hyundai Elantra SE Touring Station Wagon||$2,455|
|Honda Odyssey LX||$2,474|
|Chevrolet Silverado LS Regular Cab 4WD||$2,482|
|Jeep Wrangler Sahara 4WD 2-Dr||$2,508|
|Ford F-150 FX2 Super Cab 2WD||$2,517|
|Ford Explorer XLT AWD||$2,508|
|Ford Focus SE 4-Dr Sedan||$2,640|
|Toyota Tacoma 2WD||$2,648|
|Ford Fusion S 4-Dr Sedan||$2,674|
|Volkswagen Jetta S 4-Dr Sedan||$2,683|
|Chevrolet Equinox LS 2WD||$2,674|
|Toyota RAV4 Limited 4WD||$2,680|
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Price data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in garaging location in Colorado which can increase or decrease premium rates substantially.
Looking at the numbers, we can conclude that models like the Ford Escape, Honda CR-V, Hyundai Elantra, and Honda Odyssey are likely to be the most economical vehicles to insure for drivers age 25 and younger. Prices will tend to be more expensive because of the fact that there is more claim risk for drivers under 25, but overall those particular vehicles will have the lowest insurance prices compared to other types of vehicles.
Poor driving habits will raise your car insurance rates
One of the best ways to earn affordable car insurance prices in Colorado for drivers age 25 and younger is to be a safe driver and avoid getting tickets or having accidents. The example below shows how traffic citations and at-fault claims can raise insurance prices for different age categories. The data is based on a married male driver, full physical damage coverage, $100 deductibles, and no additional discounts are factored in.
In the prior example, the average cost of auto insurance in Colorado per year with no accidents or violations is $2,296. Get two speeding tickets and the average cost surges to $3,182, an increase of $886 each year. Then add two accidents along with the two speeding tickets and the yearly cost of car insurance for drivers under 25 in Colorado increases to an average of $6,353. That's an increase of $4,057, or $338 per month, just for being a less-than-perfect driver!
The illustration below shows how choosing a deductible can raise or lower insurance premiums when getting quotes for cheap insurance for drivers under 25 in Colorado. The data is based on a single female driver, comprehensive and collision coverage, and no discounts are applied.
As shown above, a 40-year-old driver could save $388 a year by switching from a $100 deductible to a $500 deductible, or save $586 by choosing a $1,000 deductible. Even younger insureds, like the 20-year-old example, can save $990 or more just by choosing larger deductibles.
When raising deductibles, it is important to have plenty of discretionary funds to offset the extra out-of-pocket expense, which deters some people from using high deductibles.
Liability only or full coverage
Finding the cheapest car insurance is important to the majority of drivers, and one common way to buy cheap insurance for drivers under 25 in Colorado is to not buy full coverage. The example below compares insurance premiums with full phyical damage coverage and with liability coverage only. Data assumes no claims or violations, $500 deductibles, marital status is single, and no discounts are applied to the premium.
As an average for all age groups, full coverage costs $2,209 per year more than insuring for liability only. That amount may make you wonder if buying full coverage is worth the expense. There is no exact rule that is best for determining when to drop physical damage coverage, but there is a general convention. If the annual cost of coverage is more than around 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
For example, let's say your vehicle's replacement value is $5,500 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most your company would pay you is $4,500 after the deductible is paid. If you are paying over $450 annually for comprehensive and collision coverage, then it might be time to consider dropping full coverage.
There are some conditions where eliminating full coverage is not a good plan. If you haven't satisfied your loan, you have to keep full coverage as part of the loan conditions. Also, if you can't afford to buy a different vehicle if your current one is in an accident, you should not consider dropping full coverage.