Wouldn't it be nice if we could wave our magic wand and tell you the best company in Colorado that has the best insurance prices for low credit scores? Unfortunately, it's not that simple as there are a ton of unknowns such as if you have ever had a coverage lapse, if you are a homeowner, and what coverage limits you need, that help determine the price you have to pay. We are going to cover the best ways to save money and will hopefully give you a solid foundation to find cheaper car insurance in Colorado.
Deciphering which company quotes the cheapest car insurance rates for low credit scores in Colorado requires more time in order to find coverage that fits your buget. Every car insurance company has a different process to determine premium rates, so let's look at the rankings for the overall cheapest car insurance companies in Colorado.
It's important to understand that Colorado car insurance rates are determined by lots of factors which can substantially decrease or increase the price you have to pay for coverage. Simply having another birthday, increasing liability limits, or getting a driving violation may prompt premium changes that may make certain companies affordable when they were higher priced.
Find Cheaper Car Insurance in Colorado
The Hartford may offer some of the most affordable car insurance rates in Colorado at around $825 each year. Grange, USAA, Nationwide, and GEICO would also be considered some of the more affordable Colorado insurance companies.
As the rates illustrate above, if you currently have a policy with USAA and switched to The Hartford, you might achieve a yearly price reduction of in the neighborhood of $174. Customers with Nationwide may save as much as $318 a year, and GEICO policyholders might cut rates by $327 a year.
It's important to note that these prices are averaged across all drivers and vehicles in Colorado and do not factor in a rate decrease for low credit scores. So the auto insurance company that has the cheapest rates for you may not even be in the top 21 companies shown above. That illustrates why you need to get rate quotes using your own driver data and vehicle information.
The vehicle model you are seeking coverage for is one of the biggest factors that determines if you can find economical car insurance for low credit scores. Vehicles with high performance engines, a lack of modern safety features, or an increased likelihood of liability claims will cost much more to insure than more modest models.
The data below estimates car insurance premiums for a handful of the cheaper vehicles to insure.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$872|
|Ford Escape XLT 2WD||$954|
|Chevrolet Impala LS||$1,009|
|Honda Odyssey EX||$1,016|
|Toyota RAV4 Limited 2WD||$1,028|
|Hyundai Elantra SE Touring Station Wagon||$1,036|
|Ford Explorer Limited 4WD||$1,047|
|Ford Edge SE 2WD||$1,054|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$1,047|
|Honda Civic VP 4-Dr Sedan||$1,066|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,080|
|Toyota Camry SE||$1,085|
|Toyota Corolla S||$1,095|
|Volkswagen Jetta SEL 4-Dr Sedan||$1,104|
|Dodge Grand Caravan SE||$1,108|
|Chevrolet Silverado 3500HD LTZ Crew Cab 2WD||$1,143|
|Ford F-150 Lariat Crew Cab 4WD||$1,152|
|Chevrolet Malibu LT||$1,161|
|Jeep Grand Cherokee Laredo 4WD||$1,162|
|Nissan Altima 2.5 4-Dr Sedan||$1,170|
|Ford Focus SES 4-Dr Sedan||$1,171|
|Ford Fusion SEL AWD 4-Dr Sedan||$1,179|
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Data rating is based on 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, homeowner, multi-policy, safe-driver, and claim-free. Rates do not factor in your specific Colorado location which can lower or raise price quotes considerably.
Based upon the rates shown, you can conclude that models like the Honda CR-V, Ford Escape, Chevrolet Impala, and Honda Odyssey are likely to be some of the most economical vehicles to insure for bad credit.
Get discounts on Colorado car insurance
Auto insurance companies that provide coverage for low credit scores may also provide price discounts that could reduce prices by as much as 30% if you are eligible. Popular car insurance companies and their possible discounts are outlined below.
- Progressive policyholders can earn discounts including multi-policy, multi-vehicle, homeowner, online quote discount, online signing, and continuous coverage.
- The Hartford may have discounts that include good student, anti-theft, driver training, defensive driver, vehicle fuel type, and air bag.
- Mercury Insurance offers discounts including type of vehicle, good driver, low natural disaster claims, good student, professional/association, multi-car, and accident-free.
- GEICO offers discounts for five-year accident-free, emergency military deployment, multi-vehicle, air bags, and seat belt use.
- AAA has savings for AAA membership discount, multi-policy, multi-car, education and occupation, and pay-in-full.
- State Farm includes discounts for Drive Safe & Save, good student, defensive driving training, multiple policy, and good driver.
The illustration below compares auto insurance rates with and without discounts. The price estimates are based on a male driver, no claims or driving citations, Colorado state minimum liability limits, full physical damage coverage, and $250 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, defensive driving course, safe-driver, claim-free, accident-free, and multiple vehicle discounts applied. When these discounts are applied, the average amount saved each year on car insurance for low credit scores is 28% or $508.
Comparison of full coverage and liability-only policies
Finding the cheapest car insurance is important to most drivers, and one great way to lower the cost of insurance for low credit scores in Colorado is to not buy full coverage. The example below shows the difference between insurance premiums with and without full coverage. The data is based on a clean driving record, no claims, $500 deductibles, single marital status, and no discounts are applied to the premium.
As an average for all age groups, physical damage insurance costs $1,656 per year more than just insuring for liability. At some point, almost every driver questions when is the right time to remove full coverage. There is no clear-cut formula that is best for determining when to drop physical damage coverage, but there is a general guideline. If the annual cost of comprehensive and collision coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.
For example, let's assume your vehicle's replacement value is $5,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $4,500 after the policy deductible has been paid. If premiums are more than $450 annually for your policy with full coverage, then it might be time to buy liability only.
Ratings for Colorado car insurance companies
Ending up with the best car insurance company is difficult considering how many companies sell insurance in Colorado. The company information shown below may help you choose which providers you want to consider when comparing rate quotes.
The ratings below are only made up of major nationwide insurance companies, so companies with more of a regional focus are not taken into consideration for these rankings. To check rates from the insurers below and more, 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
Low rates today, overpriced tomorrow
Colorado car insurance rates are calculated based on many things that control the price you have to pay for coverage. Improving your credit score, buying a different home, or getting a ticket for running a stop sign may generate price changes that may make certain companies cheaper in comparison to the competition.
Not only may things change on your end, but insurers amend pricing every year in order to protect their financial rating. An unexpected high level of claims can cause high rates, while lower claim expenses may result in cheaper Colorado car insurance rates.
To illustrate this example, the data below shows which company has the cheapest car insurance in Colorado for a 30-year-old female driver with no prior claims, no tickets, and a decent credit rating. If we estimate rates based on her personal profile, The Hartford quotes the best car insurance rates in Colorado at $859 each year. This is $719 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners are also on the list of the most affordable Colorado auto insurance companies.
Let's now give the driver in the first chart an accident surcharge, a lower credit rating, and a speeding ticket. Because each company uses their own formula for determining prices, comparing quotes most likely will result in a different set of the cheapest car insurance companies in Colorado as shown below.
Travelers now has the lowest price on auto insurance in Colorado with State Farm, American Family, Progressive, and Amica also being competitive. This example shows why consumers need to take the time to compare lots of rates when trying to get the lowest auto insurance rates for low credit scores. Rates are made up of many factors and change substantially, so the cheapest option the last time you checked may now be wasting a lot of money.