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6 Best Car Insurance Companies in Colorado of 2022

Aimee Parrott

Aimee Parrott

Learn where to find the best car insurance in Colorado, with details about the best companies, rates, discounts, coverage, and more.
Denver, CO

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.

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

Editors star rating review
4.0
Editor's Rating (4 Stars out of 5)

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.

What Car Insurance Discounts Are Available with GEICO in Colorado?

GEICO’s costs are low and part of that is because they offer an impressive range of discounts broken down into these categories.

  • Driver Education. Education discounts include a discount for completion of a Driver’s Ed course or defensive driving course; there’s also a good student discount of up to 15%.
  • Driver Affiliation.This category includes discounts for first responders, military service members, federal employees, and other groups, any of which may save you up to 10%.
  • Driver History & Habits. There’s a 22% discount for drivers who have gone 5+ years without an accident, and another discount for regular seat belt use.
  • Vehicle Equipment. There’s a 15% discount to insure a new vehicle, plus additional discounts for safety features such as airbags, anti-lock brakes, anti-theft system, or daytime running lights.
  • Customer Loyalty. GEICO has a multi-policy discount if you buy two or more policies and a multi-vehicle discount that can be as high as 25%.

GEICO Car Insurance Pros & Cons

Pros
  • GEICO has the lowest average cost for Colorado drivers.
  • Accident forgiveness is free if you haven’t filed a claim for five years or more.
  • You can get a quote and buy coverage online.
  • Low rates are available even if you have poor credit.
  • There’s a free mobile app that you can use to file and track claims.
  • You can access your policy information using your Google Assistant or Alexa.
Cons
  • GEICO doesn’t have as many coverage add-ons as other companies on our list.
  • Phone support is limited and may be available only in emergencies.
  • Local customer support is limited.
How is GEICO Rated?
J.D. Power (out of 1,000)824
A.M. Best - Financial Strength RatingA++
BBBA+

Progressive: Best for Coverage After a DUI

Editors star rating review
4.5
Editor's Rating (4.5 Stars out of 5)

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.

What Car Insurance Discounts Does Progressive Offer?

Progressive provides a lot of discounts that can help Colorado drivers save on car insurance.

  • Driver Discounts. Safe drivers can save with Progressive Snapshot plus additional discounts for adding a teen driver, covering a student driver who lives more than 100 miles from home, a good student discount, and one for owning a home.
  • Loyalty Discounts. Loyalty discounts include discounts for multi-vehicle coverage, policy bundling, and continuous insurance.
  • Other Discounts. Additional discounts are available for people who get a quote or buy their Progressive policy online, and enroll in paperless billing or electronic payments.

Progressive Car Insurance Pros and Cons

Pros
  • Online and mobile quoting is quick and convenient.
  • Pet injury insurance is included if you purchase collision insurance.
  • Competitive rates are available even if you’ve had a DUI.
  • Safe drivers can save with Progressive Snapshot.
  • Add-ons include roadside assistance and rental car reimbursement.
  • Uninsured/underinsured motorist coverage may be added to your policy.
Cons
  • Progressive has received more than the average number of customer complaints compared to other companies of its size.
  • Coverage for teen drivers is likely to be higher with Progressive than with other insurers.
How is Progressive Car Insurance Rated?
J.D. Power (out of 1,000)803
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index2.24

State Farm: Best for Younger Drivers

Editors star rating review
4.5
Editor's Rating (4.5 Stars out of 5)

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.

What Car Insurance Discounts Does State Farm Provide?

State Farm offers car insurance discounts in these three categories.

  • Safe Vehicle. There are discounts available based on safety features of the vehicle you drive, including airbags, plus discounts for having an anti-theft device in your vehicle, and a discount on medical coverage if your pre-1993 vehicle has passive restraints.
  • Safe Driving. State Farm’s Steer Clear program for drivers under 25 offers a discount; other discounts include the Drive Safe & Save discount, as well as discounts for accident-free driving or completing a defensive driving course.
  • Policy Bundling. State Farm offers big savings to drivers to bundle car insurance with other policies such as homeowners, renters, or life insurance; you can also save by insuring more than one car.

State Farm Car Insurance Pros & Cons

Pros
  • State Farm offers special Steer Clear and Drive Safe & Save discounts for drivers under 25.
  • Discounts for policy bundling are generous and beat the other companies on our list.
  • With bundling, you can get a single monthly bill for all your policies.
  • The standard policy includes rental car reimbursement.
  • You can purchase coverage to pay for you to stay in a hotel and pay for meals if you’re stranded 50+ miles from home.
Cons
  • Quotes must be obtained through one of State Farm’s agents.
  • State Farm does not offer gap coverage.
How is State Farm Car Insurance Rated?
J.D. Power (out of 1,000)814
A.M. Best - Financial Strength RatingA++
BBBA+
NAIC Complaint Index4.29

Nationwide: Best for Vanishing Deductible

Editors star rating review
4.0
Editor's Rating (4 Stars out of 5)

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.

What Car Insurance Discounts Are Available with Nationwide?

Nationwide offers multiple discounts in these three categories.

  • Driving habits. Nationwide has discounts for 5+ years of safe driving, using a SmartRide device to track your driving habits, and for drivers over 55 who complete a defensive driving course; they also offer a discount for student drivers who maintain at least a B average in school.
  • Bundling and more. Drivers can save up to $646 per year by bundling car and homeowners insurance, by signing up for paperless billing, and by signing up for automatic payments.
  • Vehicle features. Get a discount if your vehicle is equipped with an anti-theft device.

Nationwide Car Insurance Pros & Cons

Pros
  • Gap insurance is available.
  • The Vanishing Deductible option decreases your deductible by $100 each year you don’t file a claim, up to $500.
  • You can get accident forgiveness with three years of clean driving, less than what most companies require.
  • Nationwide waives the deductible if your car is totaled.
  • There’s a special Work-From-Home bundling option.
  • Nationwide offers usage-based SmartMiles coverage.
Cons
  • Vehicle coverage is not available for mobile homes.
  • There is no coverage for rideshares.
  • Nationwide has received a slightly higher than usual number of customer complaints compared to other companies of the same size.
How is Nationwide Car Insurance Rated?
J.D. Power (out of 1,000)787
A.M. Best - Financial Strength RatingA+
BBBA+
NAIC Complaint Index2.37

Allstate: Best for Telematics

Editors star rating review
5.0
Editor's Rating (5 Stars out of 5)

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.

What Car Insurance Discounts Are Available with Allstate?

Allstate offers impressive discounts to help policyholders save money on car insurance.

  • Vehicle Discounts. You can get a discount if you’re the first owner of a car that’s either a current model or the previous year’s model, for anti-lock brakes, or for installing an anti-theft device.
  • Driving Discounts. Get discounts if you use Allstate’s Drivewise telematics program and qualify for their Safe Driver Club; other discounts include a smart student discount.
  • Policy Discounts. This is the biggest discount category; discounts include bundling, insuring multiple vehicles, signing up for ePolicy, signing up for EZ-pay, buying your policy early, paying your premiums on time, or paying your annual premium in advance.

Allstate Car Insurance Pros & Cons

Pros
  • Allstate’s telematics program, Drivewise, is the best around and can help you save.
  • There are many add-on coverage options available, including special parts coverage.
  • Allstate’s costs are below the Colorado state average.
Cons
  • Allstate has a higher-than-average number of customer complaints.
  • Adding special coverage may increase your premiums.
How is Allstate Car Insurance Rated?
J.D. Power (out of 1,000)826
A.M. Best - Financial Strength RatingA+
NAIC Complaint Index4.04
BBBA-

Travelers: Best for New Cars

Editors star rating review
4.0
Editor's Rating (4 Stars out of 5)

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.

What Car Insurance Discounts Are Available with Travelers?

Travelers Insurance offers substantial discounts in these three categories.

  • Car and Driver Discounts. You can get a discount if you buy a new or hybrid/electric car, maintain a safe driving record, take a driver safety course, or have a young driver on your policy who has a good GPA or is away at college not driving.
  • Bundling. You can save by bundling your car insurance with home or condo insurance for a discount of up to 13%; you can also get a discount for insuring multiple vehicles or for owning a home.
  • Policy and Pay Discounts. There are many discounts in this category for paying in advance, having continuous coverage, signing up to make automatic payments, or getting a quote from Travelers before your existing policy has expired.

Travelers Insurance Pros & Cons

Pros
  • There are many coverage add-ons including new car replacement, gap coverage, accident forgiveness, and roadside assistance.
  • Policyholders can layer multiple discounts, including many–such as automatic payments and bundling–that most drivers can take advantage of.
  • Travelers Insurance has received consistently good reviews for its customer service and claims paying process.
  • Rideshare insurance is available in Colorado.
Cons
  • Travelers average cost is slightly higher than the Colorado state average.
  • Despite its good reviews for claims paying, the company has received a slightly-higher-than-average number of customer complaints.
How is Travelers Car Insurance Rated?
J.D. Power (out of 1,000)824
A.M. Best - Financial Strength RatingA++
BBBA
NAIC Complaint Index3.88

American Family: Best for Customer Service

Editors star rating review
4.0
Editor's Rating (4 Stars out of 5)

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.

What Renters Insurance Discounts Are Available with American Family?

American Family offers a nice selection of discounts to help drivers save on car insurance.

  • Safety Discounts. Get a Good Driving discount if you’ve gone 5+ years without an accident or moving violation, and there’s a discount for drivers 55 and over who complete a defensive driving course.
  • Young Drivers and Families. There are multiple discounts to help families save: teens who use the Teen Safe Driver app can get a discount, as can students who maintain a high GPA. Additional discounts in this category include an Away at School discount and a generational discount for drivers whose parents have a policy with American Family.
  • Policy Discounts. You can get a discount by bundling car insurance with another policy, insuring multiple vehicles, and discounts for low usage, signing up for automatic payments, switching to American Family from another company, or maintaining your coverage with American Family–you’ll save more the longer you’ve been with the company.

American Family Car Insurance Pros & Cons

Pros
  • American Family offers many discounts that can be layered to maximize your savings.
  • The company has excellent customer service.
  • There are many customization options to personalize your coverage.
Cons
  • The cost for American Family is higher than some other companies on our list.
  • American Family is only available in 19 states, making it less than ideal for people who move frequently.

How We Chose 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 for 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.

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.

Frequently Asked Questions

How much is car insurance monthly in Colorado?

In Colorado, the average cost of car insurance is $60 per month. However, there are a number of factors that can affect your individual rate, including the type of car you drive and your driving history. If you have a clean driving record and drive a safe, modest car, you can expect to pay less than the average. However, if you have a high-risk driving history or drive an expensive or sporty car, you can expect to pay more than the average. Colorado law requires all drivers to carry liability insurance, so be sure to shop around and compare rates before you purchase a policy.

Why is insurance higher in Colorado?

Insurance rates are determined by many different factors, including the type of vehicle being insured and the driver's age, gender, and driving history. In Colorado, cars are required to have insurance, and the state has a minimum coverage requirement of $25,000 per person/$50,000 per accident for bodily injury liability and $15,000 for property damage liability. However, Colorado is a "fault" state when it comes to car accidents, which means that drivers are responsible for paying their own damages and injuries if they are at fault in an accident. As a result, car insurance rates in Colorado are higher than in many other states. In addition, cars in Colorado must be registered with the state Department of Motor Vehicles, and drivers must have a valid driver's license. All of these requirements help to make Colorado a safe place to drive, but they also contribute to higher insurance rates.

What causes car insurance rates to go up?

In Colorado, as in most states, your car insurance rates can go up for a number of reasons. One common reason is if you get into an at-fault accident. If you're found to be at fault, your rates will usually increase, sometimes by a lot. Another reason rates can go up is if you get speeding tickets or other traffic violations. Insurance companies often use these violations as a way to determine whether you're a high-risk driver, and if so, your rates will reflect that. Sometimes, even if you haven't gotten any tickets or been in any accidents, your rates can still go up. This is often because insurers periodically re-evaluate their rates and adjust them accordingly. So even if you're a safe driver, it's possible that your rates will still go up from time to time.