The words “economical” and “auto insurance” really don’t belong together, especially when you are trying to find the best insurance rates for teenagers. Because it’s not cheap, let’s introduce you to a few of the things that influence insurance prices, and see how we can help you take a little off your next policy.
Teen driver insurance image courtesy of QuoteInspector.com
One of the more important considerations that are looked at to determine insurance cost is where you keep your vehicle. Regions with larger populations or more claims are more likely to have higher rates, whereas areas with less people or fewer weather incidents profit from lower rates.
The illustration below sorts the most costly cities in Colorado for teenagers to purchase car insurance in. Denver ranks #3 costing $1,397 for car insurance, which is approximately $116 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Pueblo | $1,440 |
| 2 | Aurora | $1,417 |
| 3 | Denver | $1,397 |
| 4 | Lakewood | $1,365 |
| 5 | Security-Widefield | $1,343 |
| 6 | Northglenn | $1,329 |
| 7 | Ken Caryl | $1,326 |
| 8 | Commerce City | $1,314 |
| 9 | Colorado Springs | $1,290 |
| 10 | Brighton | $1,285 |
| 11 | Highlands Ranch | $1,279 |
| 12 | Centennial | $1,278 |
| 13 | Parker | $1,270 |
| 14 | Arvada | $1,269 |
| 15 | Thornton | $1,268 |
| 16 | Littleton | $1,254 |
| 17 | Westminster | $1,234 |
| 18 | Castle Rock | $1,224 |
| 19 | Longmont | $1,179 |
| 20 | Broomfield | $1,179 |
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Table data uses approximated as the specific zip code location can raise or lower premiums significantly.
Deciding which companies offer the cheapest car insurance rates for teenagers requires a little more sweat than just quoting one company’s rates. Each insurance company uses their own method to set premium rates, so we will examine the car insurance companies with the most affordable rates in Denver, CO.
It’s important that readers know that Colorado car insurance rates are determined by lots of factors which can significantly increase or decrease the price you pay for coverage. Simply improving your credit, buying a home instead of renting, or getting a ticket for running a stop sign can produce rate changes that can now make some companies affordable when they were higher priced.
Find Cheaper Car Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $850 |
| 2 | Grange | $987 |
| 3 | USAA | $999 |
| 4 | Nationwide | $1,121 |
| 5 | GEICO | $1,152 |
| 6 | Auto-Owners | $1,156 |
| 7 | Travelers | $1,171 |
| 8 | State Farm | $1,209 |
| 9 | American Family | $1,314 |
| 10 | Amica | $1,340 |
| 11 | Progressive | $1,362 |
| 12 | California Casualty | $1,458 |
| 13 | Allied | $1,497 |
| 14 | Colorado Farm Bureau | $1,592 |
| 15 | Farmers | $1,613 |
| 16 | MetLife | $1,811 |
| 17 | Allstate | $2,076 |
| 18 | Encompass | $2,165 |
| 19 | Safeco | $2,472 |
| 20 | Titan | $2,711 |
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The Hartford normally has some of the most affordable car insurance rates in Denver at around $850 per year. Grange, USAA, Nationwide, and GEICO are also some of the cheaper Denver, CO auto insurance companies.
As the example above demonstrates, if you are currently insured with Nationwide and switched to The Hartford, you could realize a yearly savings of approximately $271. Colorado drivers with GEICO could save as much as $302 a year, and Auto-Owners insureds might reduce rates by $306 a year.
To find out how your current rates compare, click here to get quotes or visit any of the companies below.
Be aware that those rates are averages for all drivers and vehicles in Colorado and are not factoring in a specific zip code for teenagers. So the company that is most affordable for your situation may not even be in the list above. That emphasizes why you need to quote rates from many companies using your own driver information and specific vehicle type.
The vehicle model driven is a large consideration when looking for affordable insurance for teenagers. Vehicles with reasonable performance levels, an excellent safety record, or a low likelihood of having liability claims will cost less to insure than high performance models. The data below presents insurance prices for a selection of the more affordable automobiles to insure in Colorado.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $5,403 |
| Honda CR-V EX-L 4WD | $5,453 |
| Ford Escape XLT 4WD | $5,463 |
| Hyundai Elantra SE Touring Station Wagon | $5,781 |
| Volkswagen Jetta S 2.5 Station Wagon | $5,791 |
| Toyota Prius | $5,829 |
| Ford F-150 STX Super Cab 2WD | $6,030 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $6,080 |
| Ford Explorer Eddie Bauer 2WD | $6,090 |
| Ford Edge SEL AWD | $6,358 |
| Chevrolet Impala LS | $6,368 |
| Ford Fusion S 4-Dr Sedan | $6,408 |
| Chevrolet Malibu Hybrid | $6,416 |
| Jeep Grand Cherokee Laredo 2WD | $6,408 |
| Toyota RAV4 Sport 2WD | $6,417 |
| Dodge Grand Caravan Hero | $6,408 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $6,456 |
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Table data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in zip code location which can decrease or increase price quotes noticeably.
Looking at the numbers, cars like the Honda Accord, Honda CR-V, Ford Escape, Hyundai Elantra, and Volkswagen Jetta are going to be some of the most budget-friendly vehicles to insure for teen drivers. Car insurance rates will tend to be higher because there is more exposure for teenagers, but in general those specific models will tend to have the cheapest rates compared to other types of vehicles.
Accidents and violations increase rates
The common sense way to maintain the most affordable car insurance rates in Denver for teen drivers is to drive attentively and not have accidents or get tickets. The illustration below highlights how speeding tickets and at-fault claims increase annual premium costs for different age groups. The premiums are based on a married female driver, comp and collision included, $100 deductibles, and no other discounts are factored in.
The data charted above shows the average cost of car insurance per year with a clean driving record and no accidents is $2,068. Add in two speeding tickets and the average cost hikes up to $2,954, an increase of $886 each year. Then include two accidents along with the two speeding tickets and the 12-month cost of car insurance for teenagers jumps again to an average of $6,126. That’s an increase of $4,058, or $338 per month, just for not driving attentively!
Types of discounts on Denver car insurance
Car insurance companies that offer coverage for teenagers may also offer policy discounts that could potentially reduce rates by 40% or more if you meet specific eligibility requirements. A list of car insurance companies and the discounts they provide can be found below.
- State Farm policyholders can earn discounts including accident-free, multiple autos, anti-theft, Drive Safe & Save, Steer Clear safe driver discount, good student, and passive restraint.
- Esurance offers premium reductions for paid-in-full, Switch & Save, anti-theft, multi-policy, anti-lock brakes, emergency road assistance, and online quote.
- Progressive offers discounts including continuous coverage, homeowner, multi-vehicle, multi-policy, and online quote discount.
- Liberty Mutual discounts include safety features, newly married, exclusive group savings, multi-policy, teen driver discount, new graduate, and newly retired.
- Auto-Owners Insurance may have discounts that include paid in full, good student, teen driver, anti-theft, multi-policy, and paperless.
- GEICO may include discounts for good student, daytime running lights, multi-policy, multi-vehicle, emergency military deployment, membership and employees, and federal employee.
The information below compares car insurance rates with and without discounts being applied to the rates. Data assumes a female driver, no accidents, no driving violations, Colorado state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with vehicle safety, continuous coverage, passive restraint, good student, paperless filing, and paid-in-full discounts applied. When discounts are applied, theamount saved on car insurance for teenagers is 28% or $624.
Cost difference between full coverage and liability
Paying less for car insurance should be important to most drivers, and a great way to find cheap insurance for teenagers is to not insure for full coverage. The chart below illustrates the difference between car insurance costs when comparing full coverage to liability only. The premiums are based on no claims, a clean driving record, $250 deductibles, marital status is single, and no policy discounts are applied.
As an average for all age groups, physical damage coverage on your policy costs an extra $2,465 per year more than just buying liability insurance. That amount may make you wonder if physical damage coverage is worth the money. There is no exact rule for eliminating full coverage on your policy, but there is a broad guideline. If the annual cost of your full coverage insurance is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you may want to consider only buying liability coverage.
If you have questions and prefer to get some help when shopping for cheaper insurance for teenagers, the agents shown below can most likely answer your questions and help you decide which is the best policy.
To find an auto insurance agency near you, click the button link following the list.
- Madison Insurance Group
600 S Cherry St #900 – Denver, CO 80246 – (800) 636-6185 - Gonzalez Insurance Agency
6450 E Colfax Ave – Denver, CO 80220 – (303) 320-4901 - American Family Insurance – Abbie Davis Tanner Agency Inc
2855 Speer Blvd Suite D – Denver, CO 80211 – (303) 333-0205 - Don Middleton – State Farm Insurance Agent
1900 Wazee St #1538 – Denver, CO 80202 – (303) 595-5500 - Bao Ngoc Nguyen – State Farm Insurance Agent
1699 S Federal Blvd b – Denver, CO 80219 – (303) 975-1100