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Car Insurance in Colorado

Illustration of a car driving down a road next to a field with a highway banner that reads

This stunning western state is the perfect place for outdoor enthusiasts to visit or relocate to. Whether you want to ski down a mountain, hike through a forest, repel down a canyon wall, or whitewater raft down a river, the Centennial State has it all.

With so many mountain roads you’ll drive on to explore Colorado, you’ll want to make sure you at least have the minimum liability car insurance required by Colorado state law.

Quick Facts

  • The average cost of car insurance in Colorado is $1,757.
  • Almost 16% of Colorado drivers are uninsured or underinsured.
  • Colorado ranks 13th in the number of uninsured/underinsured drivers in the state.
  • There are about 1.8 million registered vehicles in Colorado.
  • Undocumented immigrants can get driver’s licenses in Colorado.

The average cost of car insurance in Colorado is $1,757, which is over 13% higher than the U.S. national average of $1,548. There are many factors that can affect what you will pay for car insurance in Colorado.

For example, the average cost of insurance premiums can differ depending on where you live in Colorado. Drivers in Denver pay the highest car insurance rates in the state, with average costs at $2,232 per year. Meanwhile, in Fort Collins, drivers pay an average cost of $1,773 per year for car insurance.

What Is the Average Premium in Colorado for Full Coverage Car Insurance?

Colorado is one of the most expensive states in the country for car insurance. All drivers must carry liability insurance to cover damages to other people’s vehicles in an accident. The state minimum liability coverage required is $25,000 per person, $50,000 per accident, and $15,000 for property damage.

Drivers have the option to add collision coverage, which covers accident-related damages to your car, and comprehensive coverage, which covers theft or damage to your vehicle, to a car insurance policy.

Car insurance premium rates vary depending on the deductible amount, the amount of liability coverage included, and whether you elect to carry collision and comprehensive coverage.

For full coverage car insurance with liability limits of $100,000 per person, $300,000 per accident, and $100,000 property damage, and comprehensive/collision coverage with a $500 deductible, the average annual rate is about $3,120.

How Much Is It for Just the Minimum Required Car Insurance in Colorado?

Drivers in Colorado are required to have a minimum 25/50/15 liability coverage. That is:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

If you only carry the minimum liability coverage, your insurance premiums will be about $864 per year. That’s just a little over $72 per month, which is a lot less expensive than if you were to get into an accident without insurance. Without insurance, an accident can cost you fines for not having insurance. You may also face a lawsuit that could cost even more in court costs and attorney fees.

How Do Rates Compare Across Major Cities in Colorado?

Most Colorado residents live in three main cities: Denver, Colorado Springs, and Aurora. Over 749,000 people live in and around Denver.

City Average Cost of Insurance Premiums
Denver $2,232
Colorado Springs $2,178
Aurora $2,281
Boulder $1,861
Fort Collins $1,773

Is There a Good Driver Discount in Colorado?

Colorado drivers could save up to 30% on their car insurance through a Good Driver Discount if they have a clean driving record with no speeding tickets or at-fault accidents for three years.

Other discount programs in Colorado can help bring down the cost of your car insurance premiums. Some of these discounts include:

  • Good Student Discounts: Young drivers who maintain a “B” average or higher in school can receive up to a 20% discount.
  • Continuously Insured Discount: If you’ve been insured for six months or more and haven’t let your policy lapse, then you may be eligible for this discount.
  • Driver Education: Drivers over age 50 qualify for a discount on their car insurance if they complete a defensive driving course.
  • Vehicle Safety Discount: You could be eligible for a discount if your car has certain vehicle safety equipment such as anti-lock brakes, airbags, and anti-theft devices.

Colorado is one of several states that prohibits insurance companies from offering customer loyalty discounts that reward customers for not switching companies.

Colorado Car Insurance Laws

In Colorado, it’s illegal to drive without the minimum 25/50/15 liability car insurance. Individuals who have over 25 vehicles registered in their name may qualify as self-insurers through the state’s Insurance Commissioner.

Uninsured and underinsured motorist coverage is optional in Colorado.

As an “at fault” state, Colorado drivers who cause a traffic accident must pay expenses from injuries or property damage caused in the accident.

What Are the Mandatory Car Insurance Requirements in Colorado?

Colorado law mandates that all drivers have liability coverage. The minimum liability coverage Colorado drivers are required to have is:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $15,000 property damage liability per accident

Drivers in Colorado must carry proof of insurance in their vehicles at all times.

What Factors Does Colorado Law Allow in Determining Your Premiums?

When looking for cheap car insurance in Colorado, it’s important to know what factors insurance companies look at to determine your pay rate. Things you don’t have control over, such as your age and gender, can impact your car insurance rates just as much as things you can control, like your driving record and credit score.

In Colorado, the factors car insurance companies can look at when determining your rates are:

  • Age
  • Gender
  • Marital status
  • Credit score
  • Vehicle make, model, and year
  • Insurance history
  • Driving record
  • Location
  • Driving frequency

Colorado also allows insurers to determine whether you use your vehicle for business to figure out your premium.

What Is the Penalty for Driving Without Insurance in Colorado?

Driving without the minimum liability coverage mandated by state law can result in some serious penalties in Colorado. The offense is considered a Class 1 misdemeanor, which could get you $1,000 or more in fines, a year in jail, a suspended driver’s license for up to eight months, and up to 40 hours of community service.

Drivers without insurance will also get four points on their driver’s license. Accumulating points on your driver’s license can lead to the suspension of your license. To have your driving privileges reinstated after being suspended, you’ll have to file an SR-22 or Certification of Financial Responsibility, which shows that you have obtained legal insurance coverage.

Am I Required to Report an Accident in Colorado to Authorities?

Colorado law requires that drivers report to law enforcement any accidents that result in injury or property damage. According to Colorado law 42-4-1606, failure to report traffic accidents is a Class 2 misdemeanor that could lead to 10 to 90 days in jail and $150 to $300 in fines.

If the police are already on the scene of the accident, then you may not have to report the accident because they will report it.

What Is Driving Like in Colorado?

How Many Car Accidents Happen in Colorado?

The Colorado Department of Transportation’s Strategic Transportation Safety Plan aims to reduce accident fatalities by 15% between 2020 and 2023. In 2020, there were 323 people killed in 309 fatal accidents on Colorado roadways. About 34% of those fatal accidents were due to drivers under the influence of alcohol or drugs.

City Fatal Car Accidents in 2020
Denver 50
Colorado Springs 49
Aurora 35
Fort Collins 10

How Many Motorists Are Uninsured/Underinsured in Colorado?

Even though liability insurance is required of all drivers in Colorado, not all drivers adhere to this requirement. In 2019, almost over 16% of Colorado drivers were uninsured, ranking the state 13th in having the highest number of uninsured motorists, according to the Insurance Information Institute.

Uninsured and underinsured motorist coverage on your car insurance policy is not required in Colorado. But it’s a good idea to consider adding it to protect yourself if you are ever in an accident with someone who doesn’t have the proper insurance coverage. Uninsured and underinsured motorist coverage will reimburse you if you get in an accident or hit-and-run with a driver who doesn’t have the required liability coverage.

FAQs About Colorado Car Insurance

I Am a Low-Income Driver. What Can I Do About Getting Car Insurance in Colorado?

By getting the minimum 25/50/10 liability coverage required by Colorado law, you can save yourself money you would have to pay in fines, penalties, and high-risk insurance coverage if you were ever pulled over by law enforcement without the required insurance coverage. Talk to your insurance agent about possible discounts you may qualify for on your car insurance in Colorado. If you’re driving an older vehicle but maintain safety equipment such as brakes and airbags, you could also save money on your insurance coverage.

Can an Undocumented Worker Get Car Insurance in Colorado?

Colorado is one of 10 states in the U.S. where residents can apply for a driver’s license regardless of their immigration status. Undocumented workers can get a driver’s license, so they can get car insurance coverage.

Is It Possible to Get Car Insurance in Colorado With a DUI Mark on My Record?

If you are arrested for driving under the influence (DUI) in Colorado, you can expect to pay a hefty price in car insurance premiums. Car insurance rates can jump up by almost 70% for drivers with a DUI.

On average, drivers with DUIs in Colorado will have to pay about $2,834 per year for car insurance. Although that is less than the national average of $3,336 per year, it is still a pretty significant increase that may make you reconsider getting behind the wheel after having a few drinks.

Get a Colorado Car Insurance Quote Today!

Photo of an SUV driving in Rocky Mountain National Park, Colorado with pines and mountains in the back.
Car insurance in Colorado could cost considerably less than the fines and penalties you will face if you don’t have insurance. That doesn’t include the costs you could face if you or one of your passengers is injured in an accident.

Get started with a quote online, visit us at a Colorado near you, or call us at (800) 777-5620 for a quote.

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