You have most likely watched the captivating ads from companies like Liberty Mutual and Allstate that say if you switch you’ll get the cheapest rates, so drivers should just choose the one with the best commercial, right?
Unfortunately, it’s just not that easy, as there are a lot of unknown factors like if full coverage is needed, whether you are single or married, how well you maintain your credit, and whether you are a man or a woman. The content below covers the types of situations that result in high rates and will give you a solid foundation to find cheaper car insurance in Colorado.
The vehicle requiring insurance is a large factor that determines whether or not you find the lowest-priced car insurance for low income drivers. Vehicles with limited speed and performance, excellent safety ratings, or a positive history of liability claims will cost significantly less to insure than high performance models.
The information below outlines car insurance costs for a selection of the most budget-friendly automobiles to insure in Colorado.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $1,394 |
| Ford Escape Limited 4WD | $1,512 |
| Honda CR-V LX 4WD | $1,598 |
| Nissan Altima 2.5 4-Dr Sedan | $1,652 |
| Ford Focus SES 4-Dr Sedan | $1,705 |
| GMC Sierra SLE Regular Cab 4WD | $1,770 |
| Toyota Prius | $1,778 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,772 |
| Toyota Tacoma 4WD | $1,791 |
| Ford Explorer Eddie Bauer 2WD | $1,797 |
| Jeep Grand Cherokee Laredo 2WD | $1,890 |
| Kia Optima SX | $1,895 |
| Toyota RAV4 Sport 4WD | $1,890 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $1,960 |
| Honda Odyssey EX W/Rear Entertainment | $1,984 |
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Table 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 safe-driver, multi-vehicle, homeowner, multi-policy, and claim-free. Premium costs do not factor in your specific Denver, CO location which can decrease or increase premiums greatly.
Looking at the rates, you can see that vehicles like the Honda Accord, Ford Escape, Honda CR-V, and Nissan Altima are most likely going to be the less-costly vehicles to insure for poor drivers.
Finding out which companies quote the cheapest car insurance rates for low income drivers will take a little more sweat than just comparing rates from one or two companies. Every auto insurer has a different process to set their prices, so let’s examine the car insurance companies with the overall cheapest rates in Colorado.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $859 |
| 2 | Grange | $987 |
| 3 | USAA | $1,009 |
| 4 | Nationwide | $1,121 |
| 5 | GEICO | $1,176 |
| 6 | Auto-Owners | $1,204 |
| 7 | Travelers | $1,207 |
| 8 | State Farm | $1,259 |
| 9 | American Family | $1,275 |
| 10 | Progressive | $1,336 |
| 11 | Amica | $1,340 |
| 12 | Allied | $1,439 |
| 13 | California Casualty | $1,502 |
| 14 | Farmers | $1,565 |
| 15 | Colorado Farm Bureau | $1,640 |
| 16 | MetLife | $1,885 |
| 17 | Allstate | $2,015 |
| 18 | Encompass | $2,231 |
| 19 | Safeco | $2,472 |
| 20 | Titan | $2,711 |
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The Hartford normally has some of the best car insurance rates in Denver at around $859 each year. Grange, USAA, Nationwide, and GEICO would also be considered some of the cheaper Denver, CO insurance companies.
As depicted above, if you buy coverage from Nationwide and switched to Grange, you could earn annual savings of about $134. Insureds with GEICO might save as much as $189 a year, and Auto-Owners customers might cut rates by $217 a year.
To get a quick, customized rate comparison, click here or quote rates from the companies below.
Bear in mind that those estimates are averaged for all types of drivers and the different vehicles they drive and are not factoring in a specific vehicle garaging location for low income drivers. So the insurer that can offer you the best rate may not even be in the list above. That points out the importance of why you need to get rate quotes from many companies using your own driver and vehicle profiles.
One of the many criteria that determine the amount you pay for auto insurance is where you call home. Areas with more people or even just a higher incidence of claims likely pay more, whereas areas with lower crime rates and fewer weather claims tend to receive slightly lower rates.
The following table lists the most expensive places in Colorado for low income drivers to buy an auto insurance policy in. Denver is ranked at #1 with the annual price of $1,439 for the average policyholder, which is about $120 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Denver | $1,439 |
| 2 | Aurora | $1,417 |
| 3 | Pueblo | $1,397 |
| 4 | Commerce City | $1,354 |
| 5 | Lakewood | $1,337 |
| 6 | Centennial | $1,317 |
| 7 | Northglenn | $1,303 |
| 8 | Arvada | $1,295 |
| 9 | Littleton | $1,293 |
| 10 | Security-Widefield | $1,291 |
| 11 | Colorado Springs | $1,290 |
| 12 | Ken Caryl | $1,274 |
| 13 | Brighton | $1,273 |
| 14 | Westminster | $1,272 |
| 15 | Thornton | $1,268 |
| 16 | Highlands Ranch | $1,267 |
| 17 | Parker | $1,233 |
| 18 | Castle Rock | $1,211 |
| 19 | Broomfield | $1,167 |
| 20 | Boulder | $1,159 |
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Rates are estimated as specific location information can change rates greatly.
Impact of careless driving on Denver car insurance rates
The easiest method to get cheap car insurance premiums in Colorado for poor drivers is to be a good driver and not get tickets or have accidents. The illustration below illustrates how violations and at-fault accidents can impact insurance prices for different ages of insureds. The information is based on a married male driver, full coverage, $500 deductibles, and no other discounts are factored in.
The data in the chart shows the average cost of auto insurance in Denver per year with no accidents and a clean driving record is $1,411. Factor in one speeding ticket and the average cost surges to $1,623, an increase of $212 each year. Now include two accidents along with the one speeding ticket and the annual cost of car insurance for low income drivers goes up to an average of $3,517. That’s an increase of $2,106, or $176 per month, just for a couple of infractions!
How to get discounts on Denver car insurance
Auto insurance companies that offer coverage for low income drivers could also offer premium discounts that could lower prices by as much as 35% or more if you meet certain criteria. Companies and some of the premium reductions they offer are shown below.
- The Hartford discounts include driver training, air bag, vehicle fuel type, anti-theft, good student, defensive driver, and bundle.
- American Family may offer discounts for good student, early bird, air bags, defensive driver, and multi-vehicle.
- Progressive includes discounts for continuous coverage, online quote discount, online signing, multi-vehicle, multi-policy, and good student.
- Travelers has savings for new car, student away at school, good student, early quote, hybrid/electric vehicle, save driver, and home ownership.
- Farmers Insurance may include discounts for youthful driver, alternative fuel, bundle discounts, multi-car, mature driver, good student, and distant student.
- USAA may have discounts that include vehicle storage, safe driver, new vehicle, multi-vehicle, and military installation.
- Liberty Mutual policyholders can earn discounts including newly retired, newly married, multi-car, exclusive group savings, teen driver discount, safety features, and good student.
The chart below compares premium costs with and without policy discounts. The rate quotes are based on a female driver, a clean driving record, no at-fault accidents, Colorado state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with accident-free, multiple policy, marriage, passive restraint, anti-theft, and homeowner discounts applied. When these discounts are applied to the policy premium, theamount saved on car insurance for low income drivers is 28% or $484.
Why you should be shopping around
Denver, CO car insurance rates are based on many factors that control the cost of a policy. Improving your credit score, buying a new vehicle, or getting a couple of tickets can trigger price changes that may make certain companies cheaper than others.
Not only that, but insurers change their prices every year or even multiple times each year to adjust for gains or losses. Significantly higher losses can cause high rates, while lower claim levels may result in lower-priced Denver car insurance rates.
To illustrate this point, the data below compares the cheapest car insurance in Denver, CO for a 45-year-old female driver with no violations or accidents, and solid credit. When quoting prices based on her current risk profile, The Hartford has the most affordable car insurance rates in Denver at $1,117 each year. This is $461 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners are the remainder of the cheapest Denver, CO auto insurance companies.
Now we will pretend the driver from the above example an at-fault accident, poor credit, and a traffic ticket or two. Because every insurance company has a different formula to establish rates, getting updated rate quotes may now show a substantially altered list of affordable Denver car insurance companies as shown below.
GEICO now has the best car insurance rate in Denver with State Farm, American Family, Grange, and Progressive now being in the top five. This example proves why it is so important to spend some time comparing rates when trying to find the most budget-friendly car insurance quotes for low income drivers.
Auto insurance prices are impacted by many different factors and can decrease or increase without notice, so the lowest-price company when you bought your policy may now be an over-priced policy.