Colorado is one of the fastest growing states in the nation. The influx of new residents means more cars on the road and, consequently, more insurance claims for accidents, theft and hail damage. Not surprisingly, the cost of car insurance in Colorado for some drivers is higher than the national average.

First, the good news: the cost of a car liability insurance policy that meets the state’s minimum coverage requirements is less than the national average: $413 per year versus $503 nationally, a difference of about 18 percent.

Full coverage car insurance – protecting your own vehicle with comprehensive insurance and collision insurance – is less affordable compared to the US as a whole. Coloradans pay an average of $2,337 annually, about 19 percent more than the national average of $1,897.

Car insurance premiums vary significantly, so it pays to shop around. With over 300 insurers in the state, understanding your state’s insurance requirements and typical costs can help you find the best deal.

• Colorado drivers must have liability auto insurance with minimum coverage limits of 25/50/15.
• A full coverage auto insurance policy in Colorado costs $2,337 annually, about 19% more than the US average.
• A liability-only policy that meets state requirements for coverage costs $413 annually, 18 percent less than the national average.

Understanding Colorado Car Insurance Requirements

Colorado drivers must have valid auto insurance and their policies must meet the following liability coverage minimums:

• $25,000 for bodily injury to any person in an accident
• $50,000 for bodily injury to all persons in an accident
• $15,000 for property damage

Usually written as 25/50/15, these coverage limits align with the minimum liability requirements of many other states. However, this amount of coverage will be insufficient if you are involved in a major at-fault accident. Experts say you should purchase liability insurance with coverage limits of at least 100/300/100 if you can afford it.

The cost of car insurance in Colorado depends on many factors, including the type of coverage you have. The average price of a liability-only policy that meets the state’s minimum coverage requirements is $413 per year, $90 less than the national average. However, the premium for a full coverage auto insurance policy in Colorado it is $2,337 annually, more than $400 higher than the national average.

The rates below were collected from car insurance comparison site CarInsurance.com for male and female single drivers in their 40s of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits. of $100/300/100 and $500 full and collision deductibles.

With the cost of car insurance on the rise, many drivers are comparing to find the cheapest cover. Here are some ways you can save money on your policy:

• Enroll in a usage-based insurance (UBI) program. UBI monitors your driving habits with a phone app or in-car telematics device. If you drive carefully and limit your milesyou may see a reduction in your premium. In Colorado, several insurers, including Liberty Mutual and State Farm, offer telematics insurance programs.
• Ask about discounts. Each carrier offers car insurance discounts. Some of the most common options are bundling (insuring your vehicle and home with the same insurer), switching to paperless billing, maintaining good grades if you’re a student, and more. As your agent or representative, what discounts you may qualify for.
• Consider the vehicle you are driving: If you’re shopping for a new car, look for a model with a high safety rating from the Insurance Institute for Highway Safety (IIHS) or the National Highway Traffic Safety Commission (NHTSC). Both institutions conduct rigorous and impartial tests of cars, trucks and SUVs and issue crashworthiness ratings; insurers take this into account when setting rates.

The difference in premiums between insurers is substantial. In Colorado, Geico has the cheapest average premium for full coverage at just $1,445 annually. On the other end of the spectrum, Acuity Insurance averages $3,769, 61% higher than the state average.

To help you understand how your circumstances specific could affect what you pay for coverage, here are some average car insurance rates in Colorado.

Where you live plays a major role in how much you pay for car insurance. Densely populated areas with more drivers on the road have higher accident rates, so they tend to be more expensive. Areas with high rates of property crime also tend to have higher premiums.

Residents of Lakewood, a Denver suburb, pay the highest premiums, averaging $2,492 a year, about 7 percent higher than the state average. By contrast, Fort Collins residents pay $2,209 — $128 less than the state average.

If you’ve already taken advantage of regular carrier discounts like bundling auto and homeowners policies, switching to paperless billing, maintaining a clean driving record and limiting the number of miles you drive, you’re not out of luck ways to spend less on car insurance.

Consider these additional savings strategies:

• Pay in full. Many Colorado insurers offer discounts to policyholders who pay their premiums in one lump sum rather than in monthly installments. Depending on the insurer, you can save between 5% and 15%.
• Apply for driver education and training discounts. In Colorado, special discounts are available for drivers 55 and older or those under 21 who are taking qualified driver education or training courses.
• Shop around: Even if you’re happy with your insurer, it’s a good idea compare car insurance rates every six to 12 months. It is possible that your needs of cover may have changed and you may no longer be getting the best possible deal. Experts say you should compare rates from three to five different companies to find the right deal.

No, Colorado is not one error free state; switched to a tort-based system in 2003. This means that if you are in an accident and are not responsible, you will file a claim with the at-fault driver’s insurance for damages. If you are the at-fault driver, liability insurance will not cover your own injuries or property damage.

Publishers collected rate information from car insurance comparison site CarInsurance.com for male and female single drivers in their 40s of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with 100/300 liability limits /100 and a collision and global deductible of $500.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lack of coverage.

We analyzed over 53 million quotes, over 34,000 zip codes and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for medical bills of those you injure, up to $300,000 per accident for personal injury liability for all people injured in a single accident, and $100,000 for other drivers’ car repairs and damaged goods.