The words “economical” and “insurance” really should not be used together, especially when you are looking for the cheapest coverage for inexperienced drivers. In an attempt to save some money, let’s learn about some of the things that help determine auto insurance premiums, and find a few ways to take a little off your next policy.
Shopping around for low-cost auto insurance is challenging, and determining which insurers offer the cheapest insurance rates for inexperienced drivers requires additional perseverance. Every insurance provider has a proprietary method for establishing rates, so first we will examine the insurance companies that tend to have lower prices in Colorado.
It’s a good idea to know that Denver, CO insurance rates are influenced by many factors which can significantly increase or decrease the cost of having a policy. Simply improving your credit, buying a new vehicle, or getting a DUI can trigger rate changes that can now make some companies cheaper than competitors.
Find the Cheapest Auto Insurance for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $850 |
| 2 | Grange | $958 |
| 3 | USAA | $1,029 |
| 4 | GEICO | $1,152 |
| 5 | Nationwide | $1,155 |
| 6 | Auto-Owners | $1,204 |
| 7 | Travelers | $1,207 |
| 8 | State Farm | $1,209 |
| 9 | American Family | $1,301 |
| 10 | Progressive | $1,336 |
| 11 | Amica | $1,353 |
| 12 | Allied | $1,439 |
| 13 | California Casualty | $1,458 |
| 14 | Colorado Farm Bureau | $1,576 |
| 15 | Farmers | $1,613 |
| 16 | MetLife | $1,830 |
| 17 | Allstate | $2,055 |
| 18 | Encompass | $2,187 |
| 19 | Safeco | $2,472 |
| 20 | Titan | $2,738 |
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The Hartford normally has some of the cheapest car insurance rates in Denver at around $850 a year. Grange, USAA, GEICO, and Nationwide also rank well as some of the cheapest Denver, CO insurance companies.
As the example above demonstrates, if you have coverage with USAA and switched to The Hartford, you may see annual savings of approximately $179. Colorado drivers with GEICO may save as much as $302 a year, and Nationwide customers might reduce rates by $305 a year.
To see if your current coverage is too expensive, click here to start a quote or feel free to get quotes from the companies below.
It’s important to note that these policy prices are averages across all drivers and vehicles and do not factor in a vehicle location for inexperienced drivers. So the insurer that fits your needs best may not even be in the top 21 companies in the list above. That underscores the importance of why you need to get rate quotes from many companies using your own specific driver information and vehicle.
The make and model of vehicle on the policy is one of the biggest factors when comparison shopping for affordable coverage for inexperienced drivers. Vehicles with average performance, modern passenger safety features, or a low likelihood of having liability claims will cost much less to insure than higher performance models.
The next list outlines car insurance costs for a number of the cheaper vehicles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Explorer XLT 2WD | $1,462 |
| Toyota RAV4 Limited 4WD | $1,542 |
| Honda CR-V LX 2WD | $1,599 |
| Toyota Prius | $1,651 |
| Nissan Rogue S 2WD | $1,656 |
| Jeep Wrangler Unlimited Sahara 4WD 4-Dr | $1,680 |
| Honda Odyssey EX | $1,734 |
| Hyundai Sonata SE 4-Dr Sedan | $1,737 |
| Ford Escape Limited 4WD | $1,739 |
| Honda Accord EX-L 4-Dr Sedan | $1,749 |
| Toyota Camry Hybrid | $1,765 |
| Nissan Altima 2.5 S 2-Dr Coupe | $1,770 |
| Dodge Grand Caravan CV | $1,791 |
| GMC Sierra 2500HD SLE Crew Cab 2WD | $1,846 |
| Ford Edge Limited 2WD | $1,854 |
| Honda Civic LX 2-Dr Coupe | $1,890 |
| Toyota Tacoma Double Cab 4WD | $1,892 |
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Price data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include multi-vehicle, homeowner, claim-free, safe-driver, and multi-policy. Rates do not factor in zip code location which can decrease or increase coverage rates significantly.
Based upon the rates shown, you can presume that makes and models like the Ford Explorer, Toyota RAV4, Honda CR-V, and Toyota Prius are most likely to be a few of the less-costly vehicles to insure for new drivers.
One of the more important criteria that are used to help calculate auto insurance rates is your address. Cities with larger populations or higher claim trends will most likely have higher rates, whereas areas with lower crime rates and fewer weather claims have the luxury of cheap car insurance rates.
The table below shows the highest-priced areas in Colorado for inexperienced drivers in which to buy car insurance. Denver is listed at #3 with a yearly cost of $1,383 on average, which is around $115 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Pueblo | $1,412 |
| 2 | Aurora | $1,403 |
| 3 | Denver | $1,383 |
| 4 | Commerce City | $1,368 |
| 5 | Lakewood | $1,324 |
| 6 | Centennial | $1,317 |
| 7 | Ken Caryl | $1,313 |
| 8 | Northglenn | $1,303 |
| 9 | Littleton | $1,293 |
| 10 | Security-Widefield | $1,291 |
| 11 | Colorado Springs | $1,290 |
| 12 | Westminster | $1,272 |
| 13 | Arvada | $1,269 |
| 14 | Thornton | $1,268 |
| 15 | Highlands Ranch | $1,267 |
| 16 | Parker | $1,257 |
| 17 | Brighton | $1,247 |
| 18 | Castle Rock | $1,224 |
| 19 | Boulder | $1,195 |
| 20 | Broomfield | $1,167 |
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Information shown are comparative as the specific geographic location can revise premium rates substantially.
Buying coverage from a highly-rated insurer can be challenging considering how many companies provide coverage in Colorado. The company information in the lists below may help you analyze which car insurance providers you want to consider purchasing from.
The rankings below are for large, nationwide insurance companies, so companies without a large exposure will not be included in this list. To get rate quotes from these top-rated insurers and more, click here.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 98 | 100 | 100 | 94% | A++ | 98.6 |
| American Family | 98 | 89 | 100 | 86% | A | 95.4 |
| State Farm | 88 | 93 | 96 | 90% | A++ | 92.4 |
| The Hartford | 94 | 92 | 90 | 89% | A+ | 91.7 |
| AAA Insurance | 88 | 89 | 95 | 91% | A | 91.2 |
| GEICO | 84 | 93 | 93 | 89% | A++ | 90.3 |
| The General | 89 | 91 | 89 | 88% | A- | 90 |
| Titan Insurance | 90 | 87 | 91 | 95% | A+ | 89.6 |
| Progressive | 84 | 91 | 93 | 87% | A+ | 89.5 |
| Allstate | 85 | 90 | 92 | 88% | A+ | 89.3 |
| Nationwide | 87 | 88 | 84 | 90% | A+ | 88.7 |
| Liberty Mutual | 84 | 87 | 93 | 88% | A | 88.5 |
| 21st Century | 85 | 86 | 87 | 88% | A | 86.7 |
| Esurance | 85 | 80 | 95 | 87% | A+ | 85.9 |
| Safeco | 85 | 85 | 85 | 86% | A | 85.8 |
| Travelers | 80 | 87 | 87 | 83% | A++ | 85.2 |
| Farmers Insurance | 78 | 87 | 88 | 79% | A | 84.3 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Liability only or full coverage
Paying a lower price for insurance is important to most vehicle owners, and one great way to pay less for insurance for inexperienced drivers is to buy liability only. The chart below visualizes the comparison of auto insurance rates with full coverage and liability only. Data assumes no claims or driving citations, $500 deductibles, drivers are single, and no additional discounts are factored in.
If we average the cost for all age groups, comprehensive and collision coverage on your policy costs $2,209 per year more than just insuring for liability. That touches on the question when is the right time to remove full coverage. There is no definitive guideline for eliminating comp and collision coverage, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than 10% of the settlement you would receive from your company, then it’s probably a good time to buy liability coverage only.
For example, let’s pretend your vehicle’s settlement value is $5,500 and you have $1,000 deductibles. If your vehicle is damaged in an accident, you would only receive $4,500 after the policy deductible has been paid. If you are currently paying more than $450 a year for full coverage, then it may be the right time to buy liability only.
Why you should be shopping around
Denver, CO insurance rates are calculated based on many things which can significantly increase or decrease the cost of a policy. Turning one year older, buying a different vehicle, or getting a reckless driving citation may cause policy rate changes that can now make some companies cheaper in comparison to the competition.
And not only may your rating factors change, but auto insurance companies change premium rates without warning to adjust for gains or losses. Higher than normal claims can cause rate hikes, while a profitable period may cause lower-cost Denver car insurance rates.
The bar chart below shows the cheapest car insurance in Denver, CO for a 30-year-old female driver with a clean driving record, no accidents, and a good credit rating. When comparing rates based on her current risk profile, The Hartford might quote the best car insurance rates in Denver at $1,102 annually. This is $476 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners also make the list of the most affordable Denver, CO auto insurance companies.
The chart below compares rates after we give the driver from the first example a couple of claims, poor credit, and a traffic citation. Because every insurance company has a unique approach to set policy rates, comparing insurance quotes may result in a different set of companies as shown below.
GEICO now has the cheapest price in Denver with State Farm, American Family, Progressive, and Grange also having competitive pricing. This example proves why it is so important to perform an extensive rate comparison to find affordable auto insurance rates for inexperienced drivers.
Insurance rates are impacted by many different factors and can change without notice, so the cheapest company three years ago may now be costing you a lot of money.