Getting a Quote for Colorado Car Insurance

When shopping for auto insurance in Colorado, many people often oversimplify the process. They want the least amount of coverage, for the cheapest price available. They are then dumbfounded when they have an accident, and the policy they purchased did not meet their needs.

While car insurance is not overly complicated, there are several factors that a savvy shopper should be aware of, so that they purchase a policy that balances their coverage needs within their budget constraints.

You should always compare car insurance rates using the FREE tool above! Simply enter your ZIP code into the field.

Coverage Needs

The first thing to know, before you get a quote, is your coverage needs. If you have too much coverage, then you are wasting money. On the other hand, if you have too little coverage, you may not be properly protected if you have an accident.

• Liability insurance covers the other driver's injuries and property if you are at fault in an accident. Colorado requires that you carry a minimum of $25,000 per person and $50,000 per accident of insurance coverage for people that you injure. The state also requires that you carry $15,000 for damage you cause to someone else's property. However, these minimums may not be enough to pay for the damages you do. Extra coverage is available for an extra premium. However, before deciding how much you will need, first consider what you are protecting. If you are sued, all of your assets, including future earnings, could be awarded to the injured party. Also, keep in mind that the rate per thousand will go down the more coverage you buy. $500,000 per accident may not cost much more than $300,000 per accident. Check the difference before making a final decision.
• Uninsured and underinsured motorist coverages are required by Colorado state law, unless you specifically reject these coverages. Rejecting these coverages will slightly lower your rate. However, you should consider whether or not these are coverages you need before rejecting them. A complete guide to these coverages can be found on the Colorado Division Insurance webpage here.
• Collision insurance will likely be required if you have a lien on your vehicle. However, even if you don't have a lien, consider this coverage if you cannot afford to completely replace or repair your vehicle if it were involved in an accident. Choose a deductible that you can comfortably pay if your vehicle were damaged and needed repairs. Keep in mind that the insurance company will lower the premium for a higher deductible. This is not only due to you having to pay more for the cost of repairs yourself, but also because it lowers the amount of smaller claims that the company has to process.
• Comprehensive is another coverage that will likely be required if you have a lien. Again, even if you don't have a lien, you should consider purchasing this coverage. Comprehensive coverage, often called "other than collision" insurance, will cover damage to your vehicle from most road hazards. This includes damage to your windshield if a rock, or other object, breaks, cracks, or chips it. Since most companies waive the deductible for damage to a windshield, consider purchasing this coverage with the highest deductible offered, even for vehicles that you would not normally insure against damage. The price will be very low, and you will have complete replacement cost coverage for your windshield. See the National Association of Insurance's A Consumer's Guide to Auto Insurance for more information.
• Colorado also requires medical payments insurance, to cover the first $5,000 of your medical bills in an accident. This coverage can be rejected to save on premiums; however, this is an additional amount of protection and should be considered.
• There are other coverages available that you may want or need. For example, you can buy coverage for towing and rental car reimbursement. If you can comfortably pay for these services on your own, then consider waiving these coverages. However, if paying for a rental car for a week while your car is in the body shop, in addition to the cost of your deductible, will cause financial hardship, then purchasing this protection may be a good idea.

Credit Score

While insurance companies do not use the same type of credit score that a lender will use, they do utilize the credit report to generate an insurance score. This insurance score may be used by the insurance companies to influence your premium.

• Since the credit report is being used to assess what type of risk the company is taking on, it is a legal practice.
• In most cases, those with better credit reports will pay less than those with unfavorable scores.
• Not all companies use credit reports to set premiums. If you have a lower credit score, it may pay to look for companies that do not use this as an underwriting measure.
• Inquiries to your credit report by insurance companies do not show up as loan inquires. So, getting quotes from several insurance companies will not adversely affect your credit score.

Type of Vehicle

The type of vehicle you are insuring has an effect on liability, comprehensive, and collision premiums.

• The larger the vehicle driven the more damage it is capable of doing in an accident. Liability premiums reflect this by costing more for larger vehicles such as trucks, SUVs, and Vans.
• Sports cars are expensive and are statistically more likely to be involved in an accident than less flashy cars. These types of vehicles will cost more to ensure for liability, comprehensive, and collision.
• Newer vehicles cost more to replace. Therefore, the age of the vehicle will influence how much you pay for comprehensive and collision.
• Some auto features are designed to reduce the likelihood that a vehicle will be involved in an accident, or they may lessen the effects of any damage if an accident occurs. Vehicles that are equipped with safety features, such as air bags and antilock brakes, will cost less to insure.

Driving History

Companies will often run a motor vehicle report, as well as a past claims report, before issuing a policy.

Since people with tickets or previous accidents will statistically have more claims, your history can have a major effect on the price you pay for your coverage.

• Speeding tickets, and other moving violations, will cause you to pay more for your coverage.
• Driving while intoxicated, reckless driving, and other serious violations will cause a significant increase to premiums.
• Collision claims, and sometimes comprehensive claims, will also have an effect on the price of the policy.
• Many insurance companies will require a three year history. Others, however, may require five or more years of driving history. Be prepared to give accurate dates for any violations or accidents in your past.

Discounts

Many companies offer various discounts for auto insurance.

• Multi-car discounts are available if you have multiple cars insured on one policy.
• Safe Driving discounts are often available to drivers with clean records.
• If your vehicle has an anti-theft device, it may qualify for a discount on comprehensive coverage.

Other Factors

There are several other factors that can influence what the insurance company will charge for coverage.

• The younger the driver, the higher the price. There are not many exceptions to this. Younger drivers are less experienced, take more risks, and generally have more claims than older drivers. See this brochure if you have a young driver.
• Gender can also be a factor in a company's rates. Statistically women have fewer accidents and therefore pay less in premiums. This is especially true in younger drivers. However, the gender gap in insurance premiums tends to become less and less as the drivers age.
• Being married will likely reduce the amount you pay.
• Premiums also vary based on the location of the driver. Urban areas tend to have more accidents than rural areas. Therefore, it will generally cost more to insure a vehicle that is driven in Denver than one that is driven in Durango.
• This form will give you a basic price comparison of the different areas in Colorado, as well as age and sex differences.

These factors are not weighed equally among all the companies that offer car insurance in Colorado. Some companies even specialize in types of policies that other companies would decline altogether.

Therefore, it is important to understand what coverage you need, and then get quotes for similar coverage across a wide range of companies. This is the best way to find a proper balance between coverage and cost in your auto insurance policy.

Be sure to always compare car insurance no matter where you live. Enter your ZIP code into the FREE tool located above!