You have most likely watched the commercials from insurers like Liberty Mutual and The General that guarantee the cheapest price, so drivers just need to pick one randomly, right?
Unfortunately, it’s not that simple as there are a whole bunch of unknowns like your financial responsibility, whether you want full coverage, and if you have ever let your policy lapse. This article will discuss the best ways to save on auto insurance and will give you a good beginning to your quest for cheaper car insurance in Denver.
One of the many considerations that are looked at to determine insurance cost is your address in Denver. Regions with more people or even just more weather-related claims tend to have more expensive auto insurance rates, whereas areas that tend to be more rural have the benefit of cheaper car insurance.
The table below sorts the priciest cities in Colorado for teenage females in which to buy car insurance. Denver is ranked #1 with an annual premium of $1,439 for the average policy, which is about $120 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Denver | $1,439 |
| 2 | Pueblo | $1,397 |
| 3 | Lakewood | $1,378 |
| 4 | Aurora | $1,375 |
| 5 | Commerce City | $1,354 |
| 6 | Security-Widefield | $1,343 |
| 7 | Northglenn | $1,342 |
| 8 | Ken Caryl | $1,326 |
| 9 | Colorado Springs | $1,316 |
| 10 | Thornton | $1,307 |
| 11 | Arvada | $1,295 |
| 12 | Littleton | $1,293 |
| 13 | Brighton | $1,285 |
| 14 | Centennial | $1,278 |
| 15 | Westminster | $1,272 |
| 16 | Highlands Ranch | $1,267 |
| 17 | Castle Rock | $1,261 |
| 18 | Parker | $1,233 |
| 19 | Longmont | $1,179 |
| 20 | Broomfield | $1,167 |
| 21 | Boulder | $1,159 |
| 22 | Greeley | $1,122 |
| 23 | Grand Junction | $1,120 |
| 24 | Fort Collins | $1,100 |
| 25 | Loveland | $1,096 |
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Premium amounts are estimated as the garaging address in Denver can increase or decrease coverage rates considerably.
Shopping around for low-priced insurance is not easy, and figuring out which companies offer the cheapest car insurance rates for teenage females takes a bit more work. Each insurance company uses a different method to determine rates, so let’s take a look at the car insurance companies that tend to have lower prices in Colorado.
It’s a good idea to be aware that Colorado car insurance rates are influenced by many factors which can significantly increase or decrease the price you pay for coverage. Simply having another birthday, getting married, or getting a few speeding tickets can trigger rate changes that may make certain companies cheaper than others.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $825 |
| 2 | Grange | $949 |
| 3 | USAA | $1,029 |
| 4 | GEICO | $1,141 |
| 5 | Nationwide | $1,143 |
| 6 | Auto-Owners | $1,156 |
| 7 | Travelers | $1,183 |
| 8 | State Farm | $1,246 |
| 9 | American Family | $1,301 |
| 10 | Progressive | $1,336 |
| 11 | Amica | $1,340 |
| 12 | Allied | $1,483 |
| 13 | California Casualty | $1,502 |
| 14 | Farmers | $1,613 |
| 15 | Colorado Farm Bureau | $1,640 |
| 16 | MetLife | $1,811 |
| 17 | Allstate | $2,015 |
| 18 | Encompass | $2,253 |
| 19 | Safeco | $2,522 |
| 20 | Titan | $2,630 |
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The Hartford may have some of the lowest car insurance rates in Denver at around $825 per year. Grange, USAA, GEICO, and Nationwide also rank well as some of the cheapest Denver, CO car insurance companies.
As illustrated above, if you buy coverage from GEICO and switched to Grange, you could earn a yearly savings of roughly $192. Colorado drivers with Nationwide may save as much as $194 a year, and Auto-Owners policyholders might see rate reductions of $207 a year.
To see if your current coverage is too expensive, click here to get quotes or quote rates from the companies below.
Bear in mind that those policy rates are averages for all insureds and vehicles and and are not calculated with a specific location for teenage females. So the company that fits you best may not even be in the list above. That illustrates why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
Get discounts on Denver auto insurance rates
Insurers that sell policies for teenage females may also offer rate discounts that can reduce rates by 30% or more if you are eligible to receive them. Larger car insurance companies and some of the discounts are shown below.
- State Farm offers premium reductions for driver’s education, Drive Safe & Save, good driver, multiple autos, anti-theft, multiple policy, and passive restraint.
- Liberty Mutual has savings for good student, exclusive group savings, hybrid vehicle, preferred payment discount, newly married, new vehicle discount, and new graduate.
- American Family may offer discounts for TimeAway discount, air bags, defensive driver, mySafetyValet, bundled insurance, good driver, and multi-vehicle.
- Progressive includes discounts for continuous coverage, multi-policy, online quote discount, good student, online signing, multi-vehicle, and homeowner.
- Farmers Insurance policyholders can earn discounts including youthful driver, early shopping, distant student, business and professional, pay in full, and switch companies.
- Auto-Owners Insurance discounts include group or association, teen driver, paid in full, anti-theft, company car, multi-policy, and paperless.
- SAFECO offers discounts including accident prevention training, anti-theft, homeowner, multi-car, drive less, and teen safe driver.
The diagram below illustrates the difference between insurance prices with and without policy discounts. Data assumes a male driver, no claims or violations, Colorado state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with paid-in-full, paperless filing, anti-theft, passive restraint, vehicle safety, and good student discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on car insurance for teenage females is 28% or $606.
Bad driving habits will cost you more
A great way to find the most affordable car insurance prices in Denver for teen girls is to drive cautiously and avoid tickets and accidents. The chart below shows how speeding tickets and at-fault accidents can drive up car insurance rates for different categories of driver ages. The premiums assume a married female driver, full physical damage coverage, $250 deductibles, and no other discounts are factored in.
The chart shows that the average cost of a car insurance policy in Denver per year with no accidents and a clean driving record is $1,889. Add in two speeding tickets and the average cost swells to $2,694, an increase of $804 each year. Then add two accidents along with the two speeding tickets and the annual cost of car insurance for teenage females jumps again to an average of $5,681. That’s an increase of $3,792, or $316 per month, just for not being more responsible behind the wheel!
Full coverage versus liability-only
Reducing premiums for car insurance is important to the majority of people, and one of the fastest ways to pay less for insurance for teenage females is to only buy liability coverage. The information below compares auto insurance costs with full physical damage coverage compared to only buying liability only. The premiums assume no accidents or driving violations, $500 deductibles, drivers are single, and no discounts are factored in.
If averaged out across all ages, physical damage coverage on your policy costs $1,656 per year over having just liability coverage. That is a big expense that brings up the question when is it safe to stop buying full coverage. There is no definitive formula of when to eliminate comp and collision coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is about 10% or more of replacement cost minus your deductible, then you may want to consider only buying liability coverage.
For example, let’s pretend your vehicle’s replacement value is $4,000 and you have $1,000 deductibles. If your vehicle is totaled, the most your company would pay you is $3,000 after paying the physical damage deductible. If it’s costing you more than $300 a year for full coverage, then it might be time to buy liability only.
There are some conditions where removing full coverage is not financially feasible. If you still owe money on your vehicle, you must maintain physical damage coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should keep full coverage on your policy.
The importance of comparing Denver car insurance rates
Denver, CO car insurance rates are impacted by many factors which can substantially decrease or increase the cost of coverage. Simply improving your credit, increasing liability limits, or getting a couple of tickets can trigger price changes that may make certain companies more affordable than the competition.
Additionally, car insurance companies change premium rates every year to adjust for gains or losses. An unexpected high level of claims can result in a rate increase, while profitable underwriting can cause lower-cost Denver car insurance rates.
The bar chart below shows which companies have the cheapest car insurance in Denver, CO for a 40-year-old male driver with a clean driving record, no accidents, and good credit. If we estimate prices based on his current risk factors, The Hartford offers the best car insurance rates in Denver at $1,095 per year. This is $483 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are the rest of the cheapest Denver, CO auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates a claim, slightly worse credit, and a couple of points charged on his driving record. Since each insurance company has a proprietary method for determining prices, comparing prices will most likely result in a slightly different list of affordable companies as shown below.
Auto-Owners now has the cheapest rate in Denver, CO with State Farm, American Family, Amica, and Progressive also having competitive pricing. This shows why Colorado drivers need to perform a complete rate comparison to get the lowest insurance quotes for teenage females.
Auto insurance prices are impacted by many factors and change frequently, so the lowest-price company the last time you checked may now be priced much higher than other options.