How Much are Auto Insurance Rates for Drivers with Bad Credit in Denver?

Finding dependable, cost effective insurance is tough enough, and finding out which companies offer the best auto insurance rates for drivers with bad credit will require more quotes for comparison. Each auto insurance company has their own process to set premium rates, so let’s take a look at the auto insurance companies with the overall cheapest rates in Denver.

It’s important that readers know that Colorado auto insurance rates are based on many factors that control the price you have to pay. Improving your credit rating, adding a teenager to your policy, or getting a ticket for running a stop sign can trigger changes in premium that can now make some companies more affordable than before.

Best Insurance Companies with Bad Credit

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The Hartford may offer some of the lowest car insurance rates in Denver at around $825 annually. This is $753 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, GEICO, and Nationwide would also be considered some of the most economical Denver, CO auto insurance companies.

As shown above, if you are currently insured with GEICO and switched to Grange, you may realize a yearly price reduction of around $203. Insureds with Nationwide may save as much as $206 a year, and Auto-Owners insureds might cut rates by $207 a year.

Understand that those premium estimates are averages across all drivers and vehicles and are not factoring in an exact location for drivers with bad credit. So the company that fits your needs best may not even be in the top 21 companies in the list above. That emphasizes why you need to get rate quotes using your own driver data and vehicle information.

One of the more important considerations that aid in calculating car insurance rates is where you live. Larger areas tend to have higher auto insurance costs, whereas areas that tend to be more rural have the luxury of cheap car insurance rates.

The following table sorts the most expensive places in Colorado for drivers with bad credit to buy car insurance in. Denver is ranked at #2 with the yearly price of $1,425 on average, which is approximately $119 each month.

How much does car insurance cost in Denver, CO?
Rank City Average Per Year
1 Pueblo $1,440
2 Denver $1,425
3 Aurora $1,375
4 Commerce City $1,368
5 Lakewood $1,337
6 Colorado Springs $1,329
7 Ken Caryl $1,326
8 Thornton $1,320
9 Centennial $1,304
10 Security-Widefield $1,304
11 Northglenn $1,290
12 Brighton $1,285
13 Westminster $1,272
14 Arvada $1,269
15 Parker $1,257
16 Littleton $1,254
17 Highlands Ranch $1,241
18 Castle Rock $1,224
19 Boulder $1,207
20 Broomfield $1,203
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Rate quotes are estimated as vehicle location can modify coverage prices greatly.

Cost comparison with and without full coverage

Reducing the cost of auto insurance is important to the majority of drivers, and one great way to pay lower rates for insurance for drivers with bad credit is to not buy full coverage. The illustration below illustrates the comparison of yearly insurance costs with full physical damage coverage and with liability coverage only. The data is based on a clean driving record, no claims, $250 deductibles, marital status is single, and no additional discounts are factored in.

If we average the cost for ages 20 through 70, physical damage insurance costs an additional $2,040 per year more than buying just liability insurance. Many people question when is the right time to remove full coverage. There is no definitive formula of when to eliminate physical damage coverage, but there is a general guideline. If the annual cost of coverage is more than about 10% of any settlement you would receive from your insurance company, then it’s probably a good time to buy liability coverage only.

There are some scenarios where buying only liability insurance is not a good idea. If you still have a lienholder on your title, you have to maintain full coverage to protect the lienholder’s interest. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should not remove full coverage.

Responsible drivers pay cheaper Denver auto insurance rates

The common sense way to maintain affordable auto insurance premiums for people with poor credit is to drive safe and avoid accidents and traffic violations. The example below shows how violations and at-fault collisions increase auto insurance rates for different age groups. The premiums are based on a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no discounts are applied to the premium.

The data charted above shows the average cost of auto insurance per year with no accidents or violations is $1,878. Receive one speeding ticket and the average cost jumps to $2,131, an increase of $253 each year. Now get one accident along with the one speeding ticket and the 12-month cost of auto insurance for drivers with bad credit goes up to an average of $2,839. That’s an increase of $961, or $80 per month, just for being a careless driver!

Buying coverage from a good quality auto insurance company can be challenging considering how many companies there are to choose from in Colorado. The company rank data listed below could help you pick which auto insurance companies you want to consider purchasing coverage from. The rankings below include the largest companies in the United States, so companies that may only write in Colorado are not taken into consideration for these rankings.

Top 10 Large Auto Insurers in Denver Ranked by A.M. Best Rating

  1. USAA – A++
  2. Travelers – A++
  3. State Farm – A++
  4. GEICO – A++
  5. Esurance – A+
  6. Nationwide – A+
  7. Allstate – A+
  8. Progressive – A+
  9. Titan Insurance – A+
  10. The Hartford – A+