You've seen the catchy commercials from insurers like Nationwide and Liberty Mutual claiming the cheapest rates, so drivers just need to choose one randomly, right?
Unfortunately, it's just not that easy, as there are a whole slew of unknown aspects like whether you are married or single, if you have ever had a coverage lapse, and your date of birth. The information below will cover the best ways to maintain low rates and will hopefully give the reader a good beginning to your quest for cheaper car insurance for inexperienced drivers.
For new drivers, one of the largest things that aid in calculating car insurance rates is where you keep your car in Colorado. Cities with more crime and/or more people like Denver, Pueblo, and Commerce City tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents receive better rates.
The information below lists the most expensive cities in Colorado for first-time drivers in which to purchase auto insurance.
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Rates are approximated as specific location information can affect price quotes greatly.
Finding dependable, low-priced auto insurance is difficult, and figuring out which company offers the lowest-priced auto insurance rates for first-time drivers in Colorado will involve even more diligence. Insurance premiums will most likely be quite a bit more than the state average, with the increase attributed to the higher likelihood of claims associated with selling insurance for new drivers, but affordable coverage should be achievable if you thoroughly shop around. Every auto insurer uses a different method to set their prices, so we need to take a look at the auto insurance companies that tend to be cheaper in Colorado.
It's important that readers know that Colorado auto insurance rates are determined by lots of factors which can substantially decrease or increase the cost of a policy. Price variation is why it is critical to shop around with many companies when trying to get the lowest car insurance rates for first-time drivers. Auto insurance prices can be determined by many different factors and change dramatically, so the cheapest company two years ago may now be quite expensive.
Best Car Insurance Prices for Inexperienced Drivers
The Hartford has some of the most affordable car insurance rates in Colorado at around $825 per year. This is $753 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners also are some of the cheaper Colorado auto insurance companies.
In the above example, if you currently have a policy with USAA and switched to The Hartford, you might see yearly savings of about $204. Insureds with Nationwide may save as much as $284 a year, and Auto-Owners policyholders might realize rate reductions of up to $343 a year.
To discover how much you can save, click here or quote rates from the companies below.
Remember that these premiums are averaged for all drivers and vehicles in Colorado and do not take into consideration a price increase for first-time drivers. So the insurer that can offer you the lowest price may not even be in the top 21 companies in the list above. That is why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.
The make and model of vehicle to be insured is one of the largest considerations when comparison shopping for low-priced auto insurance for first-time drivers. Vehicles with average performance, modern passenger safety features, or a low likelihood of liability claims will cost substantially less to insure than high performance models.
The information below shows coverage rates for a number of the most economical vehicles to insure in Colorado.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$3,508|
|Honda Accord EX 4-Dr Sedan||$3,515|
|Hyundai Elantra GLS Touring Station Wagon||$3,508|
|Honda CR-V LX 2WD||$3,516|
|Ford F-150 XL Regular Cab 2WD||$3,668|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$3,897|
|Ford Explorer XLT 4WD||$3,935|
|Toyota Tacoma 4WD||$3,944|
|Dodge Grand Caravan SE||$3,935|
|Ford Focus SE 4-Dr Sedan||$4,126|
|Chevrolet Impala LS||$4,132|
|Chevrolet Equinox LT AWD||$4,164|
|Nissan Altima 2.5 4-Dr Sedan||$4,172|
|Toyota RAV4 4WD||$4,164|
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Estimates do not factor in vehicle garaging location which can impact price quotes greatly.
Based upon these rates, you can infer that models like the Ford Escape, Honda Accord, Hyundai Elantra, and Honda CR-V are a few of the most economical vehicles to insure for new drivers. The price for an auto insurance policy will be more costly just because there is more risk for first-time drivers, but generally speaking those particular vehicles will have the least expensive rates compared to all other vehicles.
Illustration showing the impact of accidents and violations
A great way to maintain good auto insurance premiums in Colorado for new drivers is to drive safely and not get tickets or have accidents. The example below shows how violations and fender-benders can affect premium costs for different categories of driver ages. The data assumes a married female driver, comp and collision included, $100 deductibles, and no discounts are applied.
The data above shows the average cost of an auto insurance policy per year with a clean driving record and no accidents is $1,730. Get written up for two speeding tickets and the average cost surges to $2,471, an increase of $741 each year. Now get one accident along with the two speeding tickets and the 12-month cost of auto insurance for first-time drivers in Colorado goes up to an average of $3,214. That's an increase of $1,484, or $124 per month, just for being a little careless behind the wheel!
Rate difference between full and liability-only coverage
Finding the cheapest auto insurance should be important to the majority of vehicle owners, and an easy way to pay lower rates for insurance for first-time drivers in Colorado is to buy only liability coverage. The illustration below illustrates the comparison of car insurance rates with and without full coverage. The premiums are based on no claims or violations, $100 deductibles, single status, and no additional discounts are factored in.
Averaged for all ages 20 through 70, full coverage costs $2,242 per year more than insuring for liability only. Lot's of drivers question when is it safe to stop buying full coverage. There is no definitive formula to delete physical damage insurance, but there is a guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of the replacement cost minus the deductible, then you might consider buying liability only.
There are some scenarios where dropping full coverage is not financially feasible. If you still owe a portion of the original loan, you have to maintain full coverage in order to satisfy the requirements of the loan. Also, if you don't have enough money to buy a different vehicle if your current one is totaled, you should not drop full coverage.
Choosing a highly-rated insurance company can be a challenge considering how many different companies there are to choose from in Colorado. The information displayed below may help you select which providers to look at when shopping around.
The ratings below are only made up of companies that insure vehicles across America, so companies that have a smaller presence are not taken into consideration for these rankings. To get price quotes from these top-rated insurers and more, just 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
Why you should be comparing rates
Colorado auto insurance rates are calculated based on many things which can substantially decrease or increase the cost of your policy. Turning one year older, buying a different home, or getting a DUI can cause premium changes that can cause some rates to be much cheaper than others. Also, companies change premium rates multiple times each year to adjust for gains or losses. Significantly higher losses may result in more expensive premiums, while profitable underwriting may produce more affordable Colorado car insurance rates.
As an example, the data below compares the cheapest car insurance in Colorado for a 40-year-old female driver with a clean driving record, no accidents, and a good credit rating. Based on her personal risk profile, The Hartford offers the cheapest car insurance rates in Colorado at $825 per year. This is $753 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are the remaining cheapest Colorado auto insurance companies.
Now we will pretend the driver from the first example an at-fault accident, a lower credit rating, and a traffic citation. Since every car insurance company has their own unique process to determine rates, analyzing rate quotes most likely will result in a new list of the cheapest Colorado car insurance companies as shown below.
Travelers now has the lowest car insurance rate in Colorado with State Farm, American Family, Progressive, and USAA completing the list. This example shows why consumers need to take the time to compare lots of rates when trying to find the most budget-friendly insurance quotes for first-time drivers.
Rates are made up of many different factors and can change substantially, so the cheapest company the last time you compared rates may now be quite expensive.