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A Guide to Cheap Car Insurance in Denver, Colorado

There are many cars on the road in Denver and this does not come as a surprise. Denver is one of the fastest growing cities in the United States. Residents of this sprawling metro area are very reliant on their cars. Most of them drive to work or share a ride with their coworkers.

The main interstate highways in Denver are I-25 and I-70. There’s a troublesome intersection known locally as “the mousetrap” – you can imagine the many incidents.

Find Cheap Car Insurance in Denver, CO
Pro tip: Try 2-3 companies to find the best rate

In any event, insuring your vehicle is a requirement to legally drive in Colorado. In this article, you will find all you need to know about cheap car insurance in Denver. This includes the best insurance providers, the lowest premiums, and some insurance and driving laws specific to Colorado.

Quick Look: The Best Cheap Car Insurance Companies in Denver

Denver Car Insurance Overview

  • Average numbers of vehicles per household: 1 to 2 vehicles per household on average. In Denver, licensed drivers are only allowed to have 1 extra vehicle per household (i.e. a household with three drivers can have four cars max).
  • Minimum state insurance requirements: Bodily injury liability minimums in Colorado are $25,000 per person or $50,000 per accident; property damage liability is $15,000 per accident.
  • The average rate with a clean driving record (2019) is $1,562.

What You’ll Need to Know Before You Get a Policy in Colorado

Colorado’s Car Insurance Minimums

Drivers in Colorado need to meet the following liability minimum limits when insuring their vehicles:

  • Bodily injury liability: $25,000 for one person or $50,000 total per accident
  • Property damage liability: $15,000
  • Uninsured or underinsured motorist coverage is also required: $25,000 per person/ $50,000 total per accident

The reason why the state requires you to at least meet the minimum insurance is for you to show financial responsibility for your vehicle. You will need to present proof of insurance to the local police if they pull you over. So, it is best to keep somewhere within reach your insurance card and your license.

Colorado’s Driving Laws

Teen driving. Everyone over the age of 16 can get a driver’s license in Colorado. However, teenage drivers have some restrictions to follow. They must get a permit and be accompanied by a licensed adult who’s older than 21.

Everyone in the vehicle has to wear seat belts. Drivers under the age of 18 cannot use their cell phones and drive, with or without a hands-free device.

Driving in the mountains. You should not merge if it will disrupt the traffic, i.e. making the other drivers slow down. Since Denver is the Mile High City, you should know that if vehicles meet on a narrow one-way mountain road, the vehicle that is going uphill has the right-of-way.

What You Can Expect to Pay in Denver

Rates per Vehicle

Insurance providers use various statistics to determine insurance rates for drivers, and the vehicle’s make and model is one of the most important factors. They base the rates on the number of accidents a specific car model was involved in and the number of claims from the owners.

Luxury sports cars and foreign-made cars are usually the most expensive to insure, the likes of Porsche, Jaguar, Mercedes, BMW, etc. Their parts are more expensive to replace, part of the reason for the higher rates.

Some of the cheapest cars to insure are various models of Honda, Subaru, and Jeep. All of these are very popular cars in Denver, especially the Honda Civic and the Honda Accord. However, it is worth mentioning that these two are at the top of the list of stolen cars in Denver in 2017. Today’s car thieves steal cars for parts (easy to get caught by the law if they keep the whole cars), which is why the most popular cars are also the most stolen.

Insurance companies use these statistics as well and they bump up the rates for car models which are more likely to get stolen. You can save on insurance by adding additional safety devices to your car, such as trackers and steering wheel locks.

Rates by Credit Score

Insurance providers in almost all US states use credit score as an important factor in determining individual insurance rates. The same applies to Colorado. Insurance companies do this in order to maintain their profit because those with poor credit score usually file more claims.

That is the reason why they have to pay the highest insurance rates, and the difference can be substantial. Those with good credit scores pay somewhere around 50% less annually than those with poor credit scores.

You can improve your credit score by lowering the total amount of debts you have. If you pay bills on time, your score gets better. Insurance providers have different rates for every credit score category, so it is best to compare them all before choosing the right one for you.

This table shows the average rates for state-minimum liability insurance, but if you want to be more thorough, you can get a quote with your exact details.

Credit ScoreCheapest ProviderRate For State Minimum Coverage
Poor 300-579Geico$2,714
Fair 580-669USAA$2,317
Good 670-739USAA$1,951
Excellent 740+State Farm1,386

Rates for Drivers with a Clean Record

Being a safe driver is not to be taken lightly. If you drive carefully, you are preserving yourself and others from any possible traffic hiccups. Maintaining a clean record for over three years guarantees you some extra benefits, such as cheaper rates for car insurance.

Insurance providers also obtain detailed background checks of their applicant’s driving history. This allows them to assess the risks of potential accidents and claims. They also take into account your experience as a driver, how much do you use your vehicle, and whether you use it for personal or business purposes.

The minimum insurance is the amount of insurance any given state requires every driver to possess in order to drive. Full coverage adds more value to your policy because it covers the damage your vehicle suffers in a collision, assuming you’re at fault. It also adds comprehensive coverage which insures you against non-collision damage, such as theft, natural elements, and more.

You can see the average rates for minimum, standard, and full coverage policies.

Insurance AgencyState Minimum InsuranceStandard CoverageFull Coverage
Geico$1,785$2,035$2,455
State Farm$2,053$2,272$2,487
USAA$1,192$2,339$2,486
Nationwide$1,748$2,541$2,730
Progressive$1,916$2,244$2,536

Rates for Drivers with Infractions

As surely as night and day, drivers with excellent driving records can get discounts and overall cheaper insurance rates, while bad or irresponsible drivers will get the opposite. Running a red light once is not exactly going to get you in trouble, except you might get a ticket. On the other hand, multiple driving infractions and pilling up tickets will hurt your wallet.

In general, speed violations seem to have the lowest impact on insurance rate, but that would depend on how much over the speed limit. At-fault accidents get you rates which are even higher, and finally driving under the influence of alcohol or drugs are the most penalized. Of course, these rates vary from company to company, but you can count on paying much higher rates than good drivers.

You can see the average yearly rates in the table below (they are not exactly cheap).

Insurance Agency At Fault Accident Speed Violation DUI
Allstate$5,431$5,351$6,643
American Family$3,915$3,132$5,122
Farmers$5,743$5,284$5,665
Geico$3,395$2,858$3,929
Nationwide$3,930$3,163$4,992

Best Auto Insurance Providers in Denver

One can get a headache when choosing the right insurance provider because the market is so saturated. By now you have seen some of the best options in terms of pricing, but there are more factors to it.

Best Overall: GEICO

Most people in the United States will think of GEICO as soon as you mention car insurance. Although the competition is tough, they manage to come out on top, probably due to the aggressive marketing and reputation of low prices.

People will choose GEICO over everyone else because of the great deals they have for both state-minimum requirements and the more comprehensive insurance packages.

GEICO offers many discounts as well. For example, their multi-car discounts are the best. You can save up to 25% on just about any insurance policy this way. There are also good student discounts, discounts for the military, as well as discounts for everyone who improves their driving safety by taking a course or using additional safety devices in their vehicle.

Read Benzinga’s full Geico Auto Insurance Review

Cheapest Car Insurance: GEICO

GEICO is not the best choice just because it is the cheapest, but that fact still remains. Besides giving discounts to people with good driving records and every other discount mentioned above, they give good rates to people with poor credit score too. If you fall into that category, Geico is an attractive choice.

Drivers with a history of traffic infractions can get some relief too because Geico’s rates for those are not too high either. They are just the cheapest insurance provider all-around in Denver.

Read Benzinga’s full Geico Auto Insurance Review

Cheapest Full Coverage Insurance: State Farm

Competition for the cheapest full coverage provider is very close since multiple companies offer similar prices. You can’t go wrong with USAA, Geico, or State Farm.

Since we’ve already talked about Geico, and USAA is reserved only to military personnel and their relatives, that leaves us with State Farm. It has a longer history than Geico and some may consider it more upscale, which is why State Farm is more popular with those who are interested in full coverage than those who simply want the minimum.

Best for Military: USAA

Colorado is home to 6 military bases so many people in the Denver, CO area qualify for policies offered by USAA.

With its incredibly low rates and high customer service ratings, USAA is the best choice if you are active, retired, or are a qualifying military family member.

With USAA you can combine your home and auto policies easily and save even more on your monthly premium.

Get Quotes from Additional Providers
Pro tip: Try 2-3 companies to find the best rate

Getting Extra Coverage is Worth It

Insurance rates for vehicles in Colorado are definitely not among the most expensive in the states. Getting the minimum insurance is mandatory, but maybe it is better to invest more in safety. More so than adding safety devices to your car, comprehensive insurance policies are the safest choice. A combination of both can ensure maximum security on Denver roads.

Want to learn more about car insurance? Check out Benzinga’s guides on how to lower your car insurance rates, the best homeowners insurance and the best health insurance companies.