For drivers on welfare, one of the more important factors that aid in calculating insurance cost is where you live. Areas with more people or even just a higher incidence of claims will most likely have higher rates, whereas areas with less congestion have the enjoyment of a little cheaper coverage.
The information below sorts the most expensive places in Colorado for welfare recipients in which to purchase auto insurance. Denver is listed at #2 with the yearly price of $1,425 for the average insured, which is about $119 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Pueblo | $1,455 |
| 2 | Denver | $1,425 |
| 3 | Lakewood | $1,378 |
| 4 | Aurora | $1,375 |
| 5 | Commerce City | $1,368 |
| 6 | Security-Widefield | $1,343 |
| 7 | Thornton | $1,320 |
| 8 | Colorado Springs | $1,290 |
| 9 | Northglenn | $1,290 |
| 10 | Ken Caryl | $1,287 |
| 11 | Brighton | $1,285 |
| 12 | Highlands Ranch | $1,267 |
| 13 | Centennial | $1,265 |
| 14 | Parker | $1,257 |
| 15 | Arvada | $1,256 |
| 16 | Littleton | $1,254 |
| 17 | Westminster | $1,234 |
| 18 | Castle Rock | $1,224 |
| 19 | Longmont | $1,179 |
| 20 | Broomfield | $1,179 |
| 21 | Boulder | $1,171 |
| 22 | Grand Junction | $1,154 |
| 23 | Greeley | $1,110 |
| 24 | Loveland | $1,096 |
| 25 | Fort Collins | $1,089 |
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Rate information is approximated as the specific zip code location can revise price quotes significantly.
The type of vehicle driven is one of the primary factors that determines whether or not you can buy cheap insurance for welfare recipients. Vehicles with lots of speed or power, poor safety ratings, or a track record of large liability claims will cost substantially more to insure than safer models.
The data below outlines insurance premiums for a number of the most economical automobiles to buy coverage for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $1,392 |
| Jeep Grand Cherokee Laredo 2WD | $1,609 |
| Chevrolet Malibu LT | $1,638 |
| Toyota Tacoma X-Runner 2WD | $1,693 |
| Toyota Camry XLE | $1,701 |
| Ford Escape Limited 2WD | $1,707 |
| GMC Sierra SLT Extended Cab 2WD | $1,722 |
| Honda Odyssey EX | $1,807 |
| Ford F-150 XL Super Cab 2WD | $1,826 |
| Honda Accord EX-L 2-Dr Coupe | $1,839 |
| Toyota RAV4 Limited 4WD | $1,842 |
| Chevrolet Impala LT | $1,851 |
| Toyota Prius | $1,852 |
| Dodge Ram 2500 Crew Cab ST 4WD | $1,871 |
| Ford F-350 Super Cab XLT Turbo Diesel 2WD | $1,876 |
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Data variables include single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, claim-free, and multi-vehicle. Rate information does not factor in specific location which can increase or decrease rates considerably.
Based on these rates, you can infer that makes and models like the Honda CR-V, Jeep Grand Cherokee, Chevrolet Malibu, Toyota Tacoma, and Toyota Camry are most likely to be the cheaper vehicles to insure for drivers on welfare.
Impact of violations and accidents on rates
In a perfect world, the best way to find the most affordable auto insurance rates for drivers on welfare is to be a safe driver and avoid accidents and keep your driving record clean. The information below illustrates how speeding tickets and at-fault accidents drive up insurance prices for each age group. The rates are based on a single female driver, full coverage, $1,000 deductibles, and no policy discounts are applied.
The chart shows that the average cost of a car insurance policy per year with no accidents or violations is $1,878. Receive two speeding tickets and the average cost swells to $2,501, an increase of $623 each year. Then add in one accident along with the two speeding tickets and the 12-month cost of auto insurance for welfare recipients increases to an average of $3,145. That’s an increase of $1,267, or $106 per month, just for not paying attention while driving!
The information below illustrates how your deductible choice can influence insurance costs when researching cheap insurance for welfare recipients. Data assumes a single female driver, full physical damage coverage, and no discounts are factored in.
The chart above illustrates that a 30-year-old driver could lower their policy premium by $318 a year by switching from a $100 deductible up to a $500 deductible, or save $482 by choosing a $1,000 deductible. Younger drivers, like the Age 20 chart data, could potentially save up to $706 or even more just by choosing higher deductibles when buying full coverage. If you do decide to increase your deductibles, it is essential to have plenty of savings on hand to enable you to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Why you should be shopping around
Denver auto insurance rates are calculated based on many things which can significantly increase or decrease the price you have to pay for coverage. Simply having another birthday, increasing deductibles, or having an accident may prompt premium changes resulting in some companies being cheaper in comparison to the competition. Also, companies change the rates they charge in Colorado multiple times each year to adjust for heavy claims or excess profits. A period of higher than normal claims may result in additional price hikes, while long-term profits can result in more affordable Denver car insurance rates.
For example, the data below shows the companies that have the cheapest car insurance in Denver, CO for a 45-year-old male driver with a clean driving record, no accidents, and a high credit rating. If we estimate prices based on his current rating profile, The Hartford might offer the lowest car insurance rates in Denver at $1,136 annually. This is $442 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are also included in the top five cheapest Denver, CO auto insurance companies.
In the next rate comparison, we’ll give the driver from the first rate comparison an at-fault accident, bad credit, and a couple of points charged on his driving record. Because each insurer has their own process to set policy rates, comparing quotes could result in a substantially altered list of affordable companies as shown below.
Travelers now has the cheapest auto insurance in Denver, CO with State Farm, American Family, Amica, and Progressive also being competitive. This example demonstrates why consumers need to take the time to shop around to get the most budget-friendly insurance rates for welfare recipients. Auto insurance prices are determined by many risk factors and change dramatically, so the cheapest rate two years ago may now be an over-priced policy.