6 Best Car Insurance Companies in Colorado of 2023
Every driver in Colorado should have car insurance because it protects them from events that may damage or destroy their vehicles, including collisions, theft, and injuries to themselves or their passengers.
Whether you live in a big city like Denver or Boulder or one of Colorado’s many small towns such as Durango or Steamboat Springs, your car insurance will provide you with peace of mind any time you hit the road.
Colorado is an at-fault state, which means that all drivers are required to carry minimum amounts of liability insurance to protect themselves if they are in an accident, as follows.
- $25,000 for bodily injury or death to any one person in an accident;
- $50,000 for bodily injury or death to all persons in any one accident; and
- $15,000 for property damage in any one accident.
Many drivers in Rocky Mountain State purchase coverage beyond the minimum required to ensure they are protected if their car is totaled or stolen.
We will share costs for each of the companies on our list, but for now, you should know that the average cost of car insurance in Colorado is about $60 per month for basic coverage, although you should expect the cost to be significantly higher if you opt for full coverage.
At PropertyNest, it’s our mission to take the guesswork out of buying car insurance and we understand that it can be difficult to choose a company and find the coverage that’s best for your needs.
We’ve taken the time to research and rank the best car insurance companies in Colorado, with details about costs, discounts, coverage, and pros and cons.
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Best Car Insurance Companies in Colorado
- GEICO: Best for Affordable Car Insurance
- Progressive: Best for Coverage After a DUI
- State Farm: Best for Younger Drivers
- Allstate: Best for Telematics
- Travelers: Best for New Cars
- American Family: Best for Customer Service
GEICO: Best for Affordable Car Insurance
GEICO is the second-largest car insurance company in the US and has been providing affordable car insurance since 1936.
GEICO made our list easily because they have the most affordable coverage in Colorado, both for basic coverage and for those drivers who choose to upgrade their coverage and protection.
In addition to being affordable, GEICO also provides excellent customer service and a wide range of policy options, so you can customize your coverage.
Keep in mind that if you opt for high policy limits or customize your policy with add-ons, you should expect to pay more than you would for a basic policy.
The average cost of basic coverage with GEICO can be as low as $250 per year, with full-coverage coming in at just $1,050 per year.
Read a full GEICO car insurance editors' review.
| J.D. Power (out of 1,000) | 824 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
Progressive: Best for Coverage After a DUI
Progressive Insurance has a reputation for providing car insurance at affordable prices, and while their prices are impressive, we chose them for our list for another reason.
Driving under the influence is a common driving violation and one that can make it difficult (and expensive) to get car insurance; we like Progressive because they offer the most affordable coverage for people with a previous DUI.
On the flip side, we also appreciate that Progressive rewards good driving with its Progressive Snapshot, which uses a device to track driving behavior and reward drivers who make good choices, such as leaving enough space behind the car in front of you or driving within the speed limit.
Drivers who prefer usage-based coverage can sign up for Progressive Snapshot and track their driving with a smartphone or a Progressive device.
According to Progressive, their average cost in Colorado is $602 for minimum coverage, but you should expect to pay more if you opt for complete coverage or have a DUI on your record.
Read a full Progressive car insurance review.
| J.D. Power (out of 1,000) | 803 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.24 |
State Farm: Best for Younger Drivers
State Farm is the biggest car insurance provider in the US, with 100 years of experience protecting consumers.
There are a lot of good things about State Farm, but we selected them as one of the best car insurance companies in Colorado because they provide the Steer Clear Program, a special discount for drivers under 25 years old.
We also appreciate State Farm’s generous policy bundling discounts, allowing people to save money by bundling auto insurance with one or more other policies from State Farm.
The average cost of basic car insurance in Colorado with State Farm is just $452, although you should expect to pay more for additional coverage.
| J.D. Power (out of 1,000) | 814 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
| NAIC Complaint Index | 4.29 |
Nationwide: Best for Vanishing Deductible
Nationwide Insurance has been providing insurance to American consumers for decades and is one of the most widely-recognized car insurance companies.
Paying a deductible is a concern for most drivers when they file a claim, so we selected Nationwide for our list because they offer a vanishing deductible rider that will automatically knock $100 off your deductible for each year you don’t file a claim; you can reduce your deductible by up to $500.
We also appreciate Nationwide’s hands-on approach to insurance, which means their agents connect with clients before their policies expire to review coverage and make changes as needed.
Nationwide’s average cost in Colorado for full coverage car insurance is $1,215 per year, but you can reduce the amount you pay by layering discounts.
| J.D. Power (out of 1,000) | 787 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
Allstate: Best for Telematics
Allstate is one of the largest and most respected insurance companies and has a good reputation for providing reliable coverage.
We selected them for our list because their telematics program, SmartWise, can be used even by people who aren’t insured with Allstate yet, and good driving habits can add up to serious discounts.
We also like Allstate for its affordable rates and customizable coverage.
The average cost of basic car insurance with Allstate in Colorado is $530 per year, putting it slightly below the state average.
| J.D. Power (out of 1,000) | 826 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 4.04 |
| BBB | A- |
Travelers: Best for New Cars
Travelers Insurance holds a place as the second-largest property & casualty insurer in the US and has earned a spot in the Fortune 500.
We selected them for our list because they have the best coverage option for new cars, including new car replacements.
We also like that they have received high scores for their easy and stress-free claims-paying process, something that we think every driver will appreciate.
Travelers’ average premium for total coverage is $1,040 per year, making it one of the more affordable options on our list.
| J.D. Power (out of 1,000) | 824 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
American Family: Best for Customer Service
American Family is a regional insurance company that provides car insurance in 19 states, including Colorado.
We selected them for our list because of all the companies we researched, they had the best and most consistently well-reviewed customer service.
We also like American Family’s impressive array of customizable policy options that include ride-share coverage, classic car coverage, and roadside assistance.
The average Colorado car insurance premium for basic coverage is $730, which is higher than the stage average; however, you can save with multiple discounts.
Is Car Insurance Mandatory in Colorado?
Car insurance is mandatory in the state of Colorado.
What Types and Amounts of Car Insurance Are Required in Colorado?
Colorado state law requires all drivers to purchase liability coverage in these amounts:
- $25,000 for bodily injury or death to any one person in an accident;
- $50,000 for bodily injury or death to all persons in any one accident; and
- $15,000 for property damage in any one accident.
Many drivers choose to purchase additional coverage, including collision protection or additional liability, but these are not legal requirements.
What Does Car Insurance Cover?
Each car insurance company has a unique policy, and it’s essential to read the fine print; in Colorado, all drivers must buy these two types of minimum coverage.
Liability
Liability coverage protects you if you’re in an accident that leads to the death or injury of someone in your car or in another vehicle.
Property Damage
Property damage coverage is what protects you if you damage or destroy someone else’s property, including fences and detached garages; personal belongings inside vehicles are not covered but would be covered under your homeowners or renters insurance.
Should I Buy Additional Coverage?
You are legally required to buy minimum insurance as dictated by Colorado law, but you may want to purchase additional coverage to add to your protection.
Comprehensive coverage includes collision protection as well as protection for non-collision events including damage caused by severe weather, theft, vandalism, and accidents with animals.
You may also want to consider uninsured/underinsured driver protection, which protects you if one driver is at fault and doesn’t have adequate insurance.
Is Colorado a No-Fault State?
Colorado is an at-fault state, which means that insurance investigators will determine who was at-fault for an accident and claims related to the accident will be submitted to and paid by the at-fault driver’s insurance company.
What Does Car Insurance Typically Cover?
Basic car insurance covers your personal liability in an accident and will pay for a limited amount of expenses related to personal injuries to you and your passengers or for passengers in another vehicle.
Opting for comprehensive insurance adds coverage for damage to a vehicle and may also pay for things like roadside assistance or rental car reimbursement.
These things are typically not covered by car insurance.
- Normal wear and tear.
- Mechanical failure is unrelated to a covered event.
- Intentional damage means any damage you intentionally cause to your vehicle.
- Contents in your car. If someone breaks into your car and steals something, you’ll need to submit a claim under your homeowners or renters insurance.
What Factors Impact the Cost of Car Insurance?
Here are some of the factors that can impact how much you pay for car insurance.
- Your driving record
- The driving record of other insured drivers
- Your age
- Your gender
- The type and replacement value of your car
- The area where you live
Tips to Reduce the Cost of Car Insurance in Colorado
Here are some tips to help you decrease the cost of car insurance in Colorado.
- Drive safely.
- Take a safe driving or a defensive driving course.
- Install safety features in your car.
- Bundle several insurance policies with one provider.
- Take advantage of any available discounts to increase your savings.
You can potentially save hundreds of dollars a year by layering discounts; for example, bundling your policies, taking a driving course, and paying your premium annually in advance could all help you save.
Synopsis
Every Colorado driver is required by law to buy basic car insurance, and at PropertyNest, we suggest buying comprehensive coverage to protect yourself and provide peace of mind.
Adding collision coverage, theft coverage, and other riders will ensure that you have all the protection you need, and taking advantage of discounts will help you save money.
We recommend obtaining a minimum of three quotes from three companies to evaluate your options and compare costs and coverage before buying a policy.
How We Picked the Best Car Insurance Companies for Colorado
We researched many insurance companies before choosing the one that we included on our list using these criteria.
Average Cost
We understand that the cost of car insurance is a concern for many Colorado drivers, so we focused on companies with low rates compared to the state and national averages.
Discounts
Drivers can reduce their costs when they qualify for discounts; we selected companies with a broad array of discounts in multiple categories, particularly those that offer easy-to-qualify discounts like policy bundling or paperless billing.
Coverage
Many drivers in Colorado like being able to customize their car insurance policies with riders and add-ons, so we prioritized companies with useful riders, including the following.
- Accident forgiveness
- Gap protection
- New car replacement
- Rental reimbursement
- Ride-share coverage
- Roadside assistance
Technology
We believe that technology and convenience go hand in hand, so we chose companies with well-designed and user-friendly websites, free mobile apps, and discounts linked to driving technology.
