Find a Colorado car insurance company that won’t cost a small fortune.
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From snowboarding through fresh powder at Vail to bouldering in Rocky Mountain National Park, there’s a lot for residents of the centennial state to explore. If you’re thinking about buying or changing Colorado car insurance, make sure you choose a company that gives you the coverage you need at a good price. A great insurance company should offer value and handle claims quickly – so you can spend your time doing the things you want.
You have options for car insurance. In fact, you might feel you have too many options. In addition to going over the unique Colorado car insurance requirements, we’ll show you our top two choices for providers in the state. Both of them performed well in our research of the best car insurance companies, where we ranked providers on the following:
- Financial strength
- Customer service
Overall, we think Geico is the best choice for Colorado car insurance because of its reputation for quick claims and low average cost.
To get a free quote from Geico, call 000-000-0000 or visit the website.
In this article:
- Average Cost Of Car Insurance In Colorado
- First Choice: Geico For Cheap Car Insurance In Colorado
- Runner-Up: State Farm For Colorado Car Insurance
- State Required Insurance Minimums
- What Is The Minimum Car Insurance In Colorado?
- MedPay: Colorado Car Insurance State Suggestion
- Other Colorado Car Insurance Coverages
Average Cost Of Car Insurance In Colorado
Coloradans get to enjoy snow-capped peaks that reach to the sky. Unfortunately, average car insurance costs in Colorado have risen over the last few years, as well. According to The State of Auto Insurance, a report by The Zebra, Coloradans paid an average of $1,682 for car insurance in 2018 – the 11th most expensive in the nation (the national average is $1,470). However, in 2011, Coloradans paid $944. That means there was a 78 percent increase in premiums from 2011 to 2018 – the highest increase for any state during that time frame.
So why have costs risen so much? There are a few reasons, according to the Denver Post. In recent years, more drivers in Colorado have filed comprehensive claims because of heavy hailstorms and other bad weather, which drives up costs for the insurance pool. Cheaper gas during that time also encouraged more driving, and rapid population growth led to the risk of more accidents. Colorado Department of Transportation data shows that car accident frequency grew by about 20 percent from 2011 to 2015. Legalized recreational marijuana may also contribute to crash rates and rising costs.
Remember, these are average costs. Depending on your situation, the insurance quotes you see can be different. Things that affect your rate include:
- Your zip code
- Your age
- Your driving record (recent claims can raise your rates)
- The type of car you drive (the Honda CR-V and other family-oriented SUVs are among the cheapest to insure)
- Your credit score
- Your current driving habits, with some companies like Root or Progressive
First Choice: Geico For Cheap Car Insurance In Colorado
If you’re looking for good auto insurance rates in Colorado, Geico is a great place to start. The company tends to be an affordable option for many Coloradans, including drivers who have had tickets in the past. Recently, we researched 32 popular auto insurance providers and ranked them on aspects like financial strength, customer service, and overall cost. Geico came in second place overall because of its affordability, quick claims process, and financial stability.
The company wrote over $33 billion in premiums in 2018, it has an A++ financial rating from AM Best, and it has an A+ rating from the Better Business Bureau. While it’s possible for an insurance company to go out of business and not pay for your claim, the world would probably have to end before Geico would go out of business. The company also came in fourth place on J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study, which surveyed over 11,000 auto insurance customers on their experiences with filing claims.
In addition to standard coverages, which we will discuss below, Geico offers an extra option called Mechanical Breakdown Insurance that is similar to an extended warranty. It applies to new or almost-new cars and covers repairs for mechanical items, minus exclusions.
One downside is that the process of getting a quote and buying Colorado car insurance from Geico doesn’t stand out from the crowd. It performed below the industry average on J.D. Power’s 2019 U.S. Insurance Shopping Study.
For more information about Geico and to get a quote, call XXX-XXX-XXXX or visit the website.
Runner-Up: State Farm For Colorado Car Insurance
It’s always a good idea to look at more than one company when shopping for car insurance in Colorado. After Geico, we think State Farm is a great choice. State Farm is the largest car insurance provider in the U.S. and the largest insurer in Colorado.
The company keeps customers’ budgets in mind – it cut rates by 4.7 percent in March 2018 and 3.7 percent in March of 2019. In a state where rates have been on the rise, that can help many people save on their insurance.
State Farm’s claims process is about as good as Geico’s. State Farm was just one point behind Geico on J.D. Power’s Claims Satisfaction Study, and the company has an A+ rating on the BBB.
In addition to a range of standard coverage options, State Farm can provide coverage for travel expenses related to accidents, rideshare drivers, and roadside assistance. Depending on your situation, you could find a great rate on Colorado car insurance through State Farm.
To get a free quote from State Farm, call XXX-XXX-XXXX or visit the website.
State Required Insurance Minimums
Cars are a part of modern American life – and so is car insurance. Every state has financial responsibility laws that dictate how people are required to take responsibility for accidents. Two states let drivers opt out of car insurance if they have enough money to cover accident damage on their own, some allow cash deposits with the Department of Motor Vehicles as a stand-in, and many states also let people purchase surety bonds instead of insurance. Under all of these alternate options, you are financially responsible for the aftermath of accidents that you cause.
However, if you purchase car insurance, your insurance company takes financial responsibility for accidents that you cause (up to a certain limit and minus your deductible). This arrangement makes the most sense for many drivers today.
States’ financial responsibility laws also dictate what type of insurance is mandatory. Most states only require liability insurance – this type covers bodily injury and property damage for other people in accidents that you cause.
What Is The Minimum Car Insurance In Colorado?
Colorado requires these minimum insurance coverages:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
You’ll see these limits written as 25/50/15 when shopping for auto insurance in Colorado. Since these are liability coverages, they apply to other people in accidents you cause. It might sound like $25,000 is a good amount of bodily insurance coverage, but it can actually disappear pretty quickly. Bodily injury coverage pays for another party’s medical bills, lost wages, pain and suffering, and funeral costs. It can also pay for legal fees if someone sues you because of an accident.
According to the Insurance Information Institute, the average bodily insurance claim in 2018 was $15,785. Some states only require $15,000 in coverage, but the Colorado car insurance minimum gives you a bit more room. However, that’s just the average. If you happen to cause a more serious accident, you might have to pay well beyond that amount. Unfortunately, your insurance company won’t cover any more than your policy limits allow, and you’ll have to pay for the excess liability.
MedPay: Colorado Car Insurance State Suggestion
Even if you select the minimum required coverage when shopping for car insurance in Colorado, you’ll notice that medical payments coverage (MedPay) is included automatically. MedPay covers your own medical costs no matter who caused the accident. Colorado auto insurance regulations require carriers to offer $5,000 in MedPay when you request a quote. If you want to go without MedPay coverage, you have to decline it in writing.
Why Does Colorado Suggest This Coverage?
Well, it all started with Colorado Senate Bill 08-011 which was passed in 2008. At that time, the legislature saw a problem with the Colorado car insurance system. Trauma health providers treated car crash victims right away but then had to wait many months to receive compensation. Compensation would be paid out when the claim was settled, but it could take months or even years for that to happen.
How MedPay Works
Because of the 2008 bill, most Colaradans have at least $5,000 in MedPay. The policy only adds a few dollars to a monthly payment, but it has helped the trauma care system immensely. It can also be a lifeline for people who don’t have health insurance since they can get treatment right away.
Another nice thing about MedPay is that it doesn’t carry a deductible. People who have health insurance can even use MedPay to pay their health insurance deductible to avoid out-of-pocket costs after an accident. MedPay in Colorado also applies to anyone who is in your car at the time of the accident, whether they have a policy with MedPay or not.
Finally, health insurance companies have a right to reimbursement when you settle a bodily injury claim. For example, let’s say you were the victim in an accident and needed $10,000 in medical care. You filed a claim with the other driver’s insurance company and had to wait two years for settlement, but your own health insurance company paid for your care in the short term. After your claim was settled, your health insurance company then required you to pay back the $10,000 you received for treatment.
However, health insurance companies can’t request reimbursement from MedPay claims. So, in the scenario above, let’s say you use $5,000 from MedPay and $5,000 from your health insurer. In that case, you would still get a $10,000 settlement, but you would only have to pay back $5,000 to your health insurance company.
Other Colorado Car Insurance Coverages
Below are a few more common types of Colorado car insurance. These options are beyond the state minimum coverage requirements, but it can be a good idea to have them.
- Collision: This pays for repairs to your car from damage caused by an accident. It can apply regardless of who is at fault. If you were not at fault in an accident, your Colorado car insurance company will seek reimbursement from the at-fault party.
- Comprehensive: This coverage pays for repairs not related to an accident. It covers fire damage, flood, vandalism, and hail, for example. Comprehensive coverage also carries a deductible. The term “full coverage” usually means the combination of liability, collision, and comprehensive coverage.
- Underinsured motorist/uninsured motorist (UIM/UM): This coverage protects you from accidents caused by someone without enough insurance or none at all. While UM/UIM technically comes in bodily injury and property damage varieties, you can only get bodily injury UM/UIM under auto insurance in Colorado. That’s because your property damage liability also covers UM/UIM claims in Colorado.
- Personal injury protection (PIP): This option covers medical bills no matter who is at fault. However, it can also cover lost wages, death benefits, and childcare costs after an accident, which MedPay doesn’t cover. PIP usually has a deductible, as well. PIP isn’t as common in Colorado today as it was before 2003 – that’s when Colorado switched from a no-fault system to a fault-based system.
Some Colorado auto insurance companies may offer extra options like:
- Gap coverage: If your car is totaled, this option covers the difference between your car’s current value and the amount you have left to pay on your loan.
- Roadside assistance: Many Colorado auto insurance companies can provide assistance with towing, jump starts, spare installation, and more.
- Accident forgiveness: With this option, your rates won’t go up because of one accident. Depending on the company, you can purchase this coverage or you can receive it as a reward for multiple claim-free years.
- Rental reimbursement: This pays toward a rental car while your vehicle is in the shop after a covered repair. Insurance companies in Colorado can require you to have collision or comprehensive coverage to get this option.
Ultimately, the level of coverage you choose comes down to what you are most comfortable with, and the provider you select should be the one that’s best for your individual needs. We recommend getting quotes from several different insurance companies when shopping for Colorado car insurance.