One of the many things that determine auto insurance rates is your zip code. Areas with more people or even just a higher incidence of claims like Denver, Pueblo, and Security-Widefield are more likely to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.
The illustration below shows the most costly cities in Colorado for young drivers to purchase a policy in.
|Rank||City||Average Per Year|
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Premium amounts are estimated as the specific area where the vehicle is garaged can alter coverage prices significantly.
The vehicle that needs insurance is one of the largest factors when shopping around for the best cheap coverage for young drivers. Vehicles with lots of speed or power, a lack of advanced safety features, or a high likelihood of having liability claims will cost more to insure than safer models.
The list below presents car insurance premiums for a handful of the most cost-effective vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$3,853|
|Hyundai Elantra GLS Touring Station Wagon||$3,861|
|Ford Escape XLS 2WD||$3,853|
|Honda Accord EX-L 4-Dr Sedan||$4,126|
|Ford Explorer XLT 2WD||$4,334|
|Volkswagen Jetta 2.0T Station Wagon||$4,397|
|GMC Sierra SLE Regular Cab 2WD||$4,570|
|Toyota RAV4 2WD||$4,577|
|Dodge Grand Caravan SXT||$4,605|
|Ford F-150 Lariat Crew Cab 4WD||$4,610|
|Ford Focus SEL 4-Dr Sedan||$4,767|
|Honda Civic EX 4-Dr Sedan||$4,773|
|Toyota Tacoma X-Runner 2WD||$4,805|
|Honda Odyssey EX-L W/Navigation||$4,811|
|Chevrolet Impala LTZ||$4,805|
|Toyota Camry XLE||$4,814|
|Ford Edge Sport 2WD||$4,805|
|Chevrolet Equinox LTZ AWD||$4,841|
|Jeep Grand Cherokee Limited 4WD||$4,851|
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Premium data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate information does not factor in specific garaging location which can impact insurance rates substantially.
Based on these rates, we can presume that vehicles like the Honda CR-V, Hyundai Elantra, Ford Escape, and Honda Accord are likely to be the cheaper vehicles to insure for youthful drivers. Rates will be more costly because there is more liability risk for young drivers, but generally speaking those specific models will have the best insurance prices available.
Finding good, budget auto insurance is not always easy, and finding out which companies quote the lowest-priced insurance rates for young drivers in Colorado involves even more shopping around. Coverage prices could be quite a bit more expensive than the average price in Colorado, with the increase attributed to the potential for more claims related to selling coverage for youthful drivers, but reasonable coverage may be available with a little diligence. Each insurance company uses slightly different criteria for determining rates in each state, so let's take a look at the overall cheapest insurance companies in Colorado.
Compare Cheap Insurance Quotes for Teens
|Rank||Company||Cost Per Year|
|15||Colorado Farm Bureau||$1,624|
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The Hartford may offer some of the best car insurance rates in Colorado at around $834 a year. Grange, USAA, GEICO, and Nationwide would also be considered some of the more affordable Colorado car insurance companies.
In the rate table above, if you are insured with Grange and switched to The Hartford, you could see an annual premium reduction of upwards of $124. Insureds with USAA might save as much as $195 a year, and GEICO customers might reduce prices by as much as $318 a year.
Be aware that those estimates are averages for all types of insureds and vehicles and and are not figured with a price surcharge for young drivers. So the insurer that can offer you the best price may not even be in the top 21 companies in the list above. That's why you need to get rate quotes from many companies using your own specific driver and vehicle information.
Irresponsible driving raises your rates
The easiest way to earn the cheapest insurance rates for youthful drivers is to be a careful driver and avoid accidents and violations. The information below highlights how traffic violations and fender-benders drive up insurance premiums for different age groups. The rates are based on a single male driver, comp and collision included, $250 deductibles, and no discounts are applied.
In the previous chart, the average cost of a car insurance policy in Colorado per year with a clean driving record and no accidents is $2,508. Factor in two speeding tickets and the average cost jumps to $3,325, an increase of $817 each year. Now include two accidents along with the two speeding tickets and the 12-month cost of insurance for young drivers in Colorado goes up to an average of $6,321. That's an increase of $3,814, or $318 per month, just for being a less-than-perfect driver!
Get discount Colorado car insurance
Car insurance companies that sell policies for young drivers could also offer premium discounts that could reduce prices by as much as 35% if you meet certain criteria. Large insurance companies and some of the premium reductions they offer are:
- State Farm offers premium reductions for accident-free, multiple policy, safe vehicle, driver's education, Drive Safe & Save, student away at school, and passive restraint.
- Nationwide discounts include anti-theft, good student, family plan, multi-policy, and defensive driving.
- GEICO offers discounts including driver training, multi-policy, multi-vehicle, daytime running lights, seat belt use, and anti-theft.
- AAA includes discounts for good student, anti-theft, multi-policy, good driver, AAA membership discount, multi-car, and pay-in-full.
- 21st Century may have discounts that include automatic seat belts, good student, theft prevention, early bird, anti-lock brakes, homeowners, and 55 and older.
- The Hartford may include discounts for driver training, bundle, good student, air bag, and defensive driver.
The information below illustrates the comparison of auto insurance costs with and without discounts. The price estimates are based on a male driver, no accidents, no driving violations, Colorado state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the price with no discounts. The second shows the rates with paid-in-full, continuous coverage, good student, paperless filing, anti-theft, and passive restraint discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on insurance for young drivers is 28% or $989.
Colorado car insurance rates
Colorado insurance rates are impacted by many factors which can substantially decrease or increase the price you have to pay. Improving your credit score, moving across town, or getting a ticket for running a stop sign may cause policy rate changes that can now make some companies cheaper than competitors.
Not only may things change on your end, but auto insurance companies change rates without warning to adjust for unexpected claims or profits. A period of increased losses can result in additional price hikes, while a profitable period may cause cheaper Colorado car insurance rates.
For instance, the graph below shows the company with the cheapest car insurance in Colorado for a 35-year-old female driver with a clear driving record, no claims, and a good credit history. If we estimate prices based on her current rating profile, The Hartford quotes the most affordable car insurance rates in Colorado at $834 annually. This is $744 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO also make the list of the top five cheapest Colorado auto insurance companies.
In this example, we will give the driver in the first example some claims, a lower credit score, and a traffic ticket or two. Since each auto insurer has a unique approach for setting rates, comparing insurance quotes may now result in a substantially altered list of affordable Colorado car insurance companies as shown below.
Travelers now has the cheapest car insurance in Colorado with State Farm, American Family, Progressive, and Amica now rounding out the top five. This example illustrates why Colorado drivers need to compare rates to find the cheapest car insurance rates for young drivers. Car insurance prices are calculated by many different factors and can decrease or increase without notice, so the cheapest company the last time you shopped your coverage around may now be costing you a lot of money.
How to find economical car insurance for young drivers
The list below shows some of the better money-saving ideas that can help Colorado drivers quote more affordable coverage.
- Accident-free drivers may qualify for discounts
- Raise your physical damage coverage deductibles
- Do not get traffic tickets
- Safer vehicles cost less to insure
- Good credit scores may make rates cheaper
- On older vehicles, drop full coverage
- Shop around for cheaper rates regularly
The last suggestion is very critical, as we pointed out in the prior information. Insurance prices can change in a short period of time, so drivers shouldn't be reluctant to buy a different policy if a better rate can be found.
Staying with the same company for years is fine, but is isn't recommended if that loyalty results in overpaying hundreds of dollars year after year. If you have a few minutes, compare prices and find cheaper car insurance for young drivers.