How Much is Car Insurance for Young Drivers in Colorado?

The model of vehicle driven is a large consideration that determines whether or not you find low-cost car insurance for young drivers. Vehicles with reasonable performance levels, a great safety record, or a track record of few liability claims will cost significantly less to insure than adrenaline junky models. The data below estimates insurance costs for the most budget-friendly vehicles to buy coverage for.

Table data represents single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in specific zip code location which can affect coverage rates substantially.

Data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in specific location information which can increase or decrease coverage rates significantly.

Prices based on single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in specific location which can decrease or increase premium rates substantially.

Deciphering which company offers the most affordable insurance rates for young drivers may require a little more sweat in order to find the lowest price. Every car insurance company uses a slightly different approach for filing rates in each state, so let’s examine the insurance companies with the most affordable rates in Colorado.

It’s a good idea to know that Colorado insurance rates are impacted by many things which can significantly increase or decrease the price you have to pay. Simply turning a year older, getting married, or getting a ticket for careless driving may cause policy rate changes resulting in some companies being cheaper than competitors.

Best Insurance Companies for Teens

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The Hartford offers some of the lowest car insurance rates in Colorado at around $834 each year. Grange, USAA, Nationwide, and Auto-Owners are also some of the more affordable Colorado auto insurance companies.

As the rates illustrate above, if you are a policyholder with Auto-Owners and switched to Grange, you might see an annual premium reduction of roughly $210. Insureds with Travelers could save as much as $225 a year, and GEICO customers might see rate reductions of $229 a year.

To discover how much you can save, click here to start a quote or quote prices from the following companies.

It’s important to note that these premium estimates are averaged for all ages of drivers and types of vehicles and do not take into consideration a price increase for young drivers. So the car insurance company that is most affordable for your situation may not even be featured in the above rate chart. That is why you need to get rate quotes from many companies using your own driver information and specific vehicle type.

When buying insurance for youthful drivers, one of the key things that affect rate quotes is where you keep your car in Colorado. Cities with larger populations or higher claim trends like Aurora, Denver, and Northglenn will most likely pay more, whereas areas with less people or fewer weather incidents have the benefit of cheap auto insurance for young drivers in Colorado.

The table below lists the higher priced cities in Colorado for young drivers to buy auto insurance in.

Rate information is comparative as the specific area where the vehicle is garaged can impact price quotes substantially.

Full coverage rates compared to liability-only

Finding cheap auto insurance for young drivers in Colorado is important to most drivers, and one of the best ways to buy cheaper insurance is to not buy comprehensive and collision coverage. The example below illustrates the comparison of auto insurance costs with full phyical damage coverage and with liability coverage only. The prices are based on no violations or claims, $500 deductibles, drivers are not married, and no discounts are taken into consideration.

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As an overall average, physical damage coverage costs an additional $2,209 per year over having just liability coverage. At some point, about every driver wonders if buying full coverage is a waste of money. There is no definitive formula to eliminate comp and collision coverage, but there is a guideline you can use. If the yearly cost of comp and collision coverage is more than about 10% of replacement cost minus your deductible, then it may be the right time to buy liability only.

There are some situations where only buying liability is not financially feasible. If you have an outstanding loan on your vehicle, you have to carry full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you don’t have enough money to buy a different vehicle in case of an accident, you should keep full coverage on your policy.

Who has the cheapest insurance quotes for youthful drivers?

Thanks to technology, there are a lot of ways to find lower-cost insurance in Colorado, but the most common are from an independent insurance agent, an exlusive agent like Liberty Mutual or State Farm, or from a direct company like Geico or Progressive. Each way has the same basic process, but each is different in how they provide price quotes.

Independent insurance agencies have contracts with multiple insurance companies and can compare rates with all of them. Independent agents can quote with many companies and provide you with more rate quotes, which can help you get improved chances of finding a lower rate. If the agent locates a cheaper price, they simply move the coverage in-house and the insured can keep the same agent.

An exclusive agent is only able to write business for one insurance company, two examples being State Farm and Allstate agents. These agents are unable to shop your coverage around, which requires you to shop around.

Buying insurance direct means you do not use an exlusive or independent agent and buy direct from companies such as Geico or Esurance. Shopping for insurance direct is a good choice for people who have little risk and understand what limits they need.

So what is the best way for finding cheap auto insurance for young drivers in Colorado? It would be obvious to point out shopping direct yields the cheapest rates since there isn’t an agent involved, but unfortunately, that is not the case. It could also be said an independent agent is the best way since they have more companies to choose from, but that is not necessarily true either. In many circumstances, the exclusive agents may have very competitive prices that cannot be met by either independent or direct companies.

Due to the large number of rating factors, really the best method to get rock-bottom rates is to get rate quotes and compare. We recommend you get prices from all three types in order to have enough rates to compare. For a list of companies with cheap rates in Colorado, click here to view.

How to find cheap auto insurance for young drivers in Colorado

Lowering your rates is not difficult, and here are a few penny-pinching suggestions that can help you find cheap coverage.

• Pay for smaller claims out-of-pocket
• Improve your credit
• Do not get traffic tickets
• Buy a car with high safety ratings
• Avoid accidents
• Check for cheaper rates once a year

That last piece of advice is especially valuable, as we discussed in the prior information. Auto insurance prices can be modified anytime, so you should be ready to buy a different policy if a better deal can be had. Having a favorite company is fine, but it isn’t a good idea if your bullheadedness ends up costing you big bucks every year. It only takes a couple minutes to compare prices and find cheaper insurance for young drivers.