Colorado Car Insurance Rates (2020)

Colorado requires a minimum of 25/50/15 of bodily injury and property damage coverage. The average rates for car insurance in CO are $79.90/mo.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • Colorado has an average auto insurance premium rate of $1,500 per year
  • Due to an increased number of claims, insurance premiums have risen steadily for the past few years
  • If you can, try to carpool or use public transportation

It is easy to find a quote for car insurance in Colorado. However, you will need to consider a few things first. The auto insurance industry is growing. This means the rates you receive from companies can vary greatly.

The number of customers in the state of Colorado looking for auto insurance is on the rise. Because of this, countless companies offer auto insurance coverage in the state. To get the best car insurance rates in Colorado, your research needs to be thorough.

In just minutes, you can receive car insurance quotes from multiple companies by entering your zip code into the FREE tool above!

Car Insurance Rates in Colorado

Colorado decided not to renew their no-fault law in 2003. Many believed the change from no-fault to tort would be beneficial. For a while, it was.

However, between 2008 and 2009, the rates started to rise. There were many reasons for this rate increase. One valid explanation pointed towards the state mandate regarding an increase in uninsured/underinsured motorist coverage.

In 2007, the representative for the National Association of Mutual Insurance Companies spoke openly about the proposed legislation to increase uninsured/underinsured motorist coverage. He explained the negative impact, including higher rates.

He also stated most customers would be confused.

Regardless, the law passed on January 1, 2008, increasing the limitations along with annual premiums charged to drivers.

Another issue surrounded the initiation of Med Pay.

Effective January 1, 2009, every car insurance company had to offer its customers $5,000 for medical payments coverage. It is not a requirement for individuals to purchase, but it does affect insurance premiums.

Since both of these levels of coverage are automatic, many customers had no clue they could refuse. They did not know these coverages were optional.

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Increase in Damage Claims

An increase in damage claims over the past few years has contributed to higher auto insurance rates. Colorado is well-known for its harsh winters, but the state has been hit especially hard by inclement weather in the past few years.

Recently, the wildfires and extreme weather caused over $320 million for both auto and home insurance claims according to the Rocky Mountain Insurance Information Association.

The record number of hailstorms wreaked the most havoc on automobiles. Large hailstones can cause severe damage to windshields, roofs, and hoods. Once a customer pays the deductible, the auto insurance company must carry the balance.

If there are too many claims made by customers within the same year, the only way insurance companies can survive is by raising rates.

Consider the Fraud Factor

In 2011, the Colorado Department of Law Insurance Fraud Unit and the Attorney General’s Auto Theft Unit listed 579 different cases of auto insurance fraud.

The fraudulent claims in Colorado in 2011 alone cost the car insurance companies $280,000, which is passed on to customers.

Because insurance fraud makes rates increase, the companies and the consumers suffer.

Seniors Receive More Discounts

In spite of all the auto insurance rate increases in Colorado, there is also good news.

Senior citizens over 55 can receive a discount by completing the safe driving program offered by St. Thomas More Hospital in Canon City.

During this two-day class, those in attendance learn or review the vital rules of the road. This encourages older drivers to maintain a certain level of awareness and learn how to avoid distractions in addition to learning defensive driving techniques.

The hospital holds these classes every month.

The best part is the Colorado Department of Insurance provides this information on their website for free. They advocate these classes and want as many seniors to take note of this resource. It is considered as one of the many ways seniors can save money on car insurance.

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The Best Defense is a Strong Offense

The changes in Colorado, both natural and fraudulent are costly between the false auto insurance claims and the freakish weather. However, there are many ways you can receive a comparable car insurance premium rate.

You can start with simple steps, such as using public transportation more.

Instead of driving to the neighborhood grocery store, share the ride with a family member. You can also spend more time walking or riding your bike as an alternative to driving. The health benefits are as numerous as the benefits to your insurance rates.

The fewer miles you put on your car, the lower your risk factor, as this is how most auto insurance companies issue rates.

Driving fewer miles as much as possible will give you a better chance of receiving lower priced rates from a low-risk category. If you expect to receive a decent car insurance premium, you need to find ways to stay ahead of the curve.

Choose Your Company Wisely

Car insurance rates have risen steadily over the past few years in Colorado. Previously, you might have expected an annual rate of $750 to $800.

Colorado now has an average auto insurance premium rate of $1,500 per year.

This is a huge change from the first part of the decade when Colorado car insurance rates were below the national average.  Unfortunately, the high costs for car insurance in Colorado may not go down in the near future.

To compare car insurance quotes and find the best rates for your needs, you need to search for online car insurance quotes. You can do this using online quote tools that compare multiple car insurance companies at one time.

Get started now using our FREE quote tool below!

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