You have seen the catchy commercials from companies like Farmers and Allstate that make claims of huge savings. So drivers just need to choose any of them, right?
Regrettably, it’s not quite that easy, as there are a whole bunch of unknown elements such as the level of liability coverage you want, where you live in Denver, if you have any driving citations, and how well you maintain your credit, that all influence how much you pay for auto insurance. We will try to teach you about the causes of high insurance rates and will hopefully give you a good beginning to your quest for cheaper car insurance in Denver.
Finding low-cost auto insurance is difficult, and deciding which companies offer the cheapest insurance rates for 20 year old guys involves even more work. Every auto insurer uses slightly different criteria for determining rates in each state, so we’ll take a look at the insurance companies with the overall best prices in Denver, CO.
Best Auto Insurance Prices for Men Age 20
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,576|
|Find Your Rate Go|
The Hartford generally has some of the cheapest car insurance rates in Denver at around $834 a year. This is $744 less than the average price paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO also are some of the cheaper Denver, CO auto insurance companies.
As the example above demonstrates, if you currently have a policy with Nationwide and switched to Grange, you might realize annual savings of in the neighborhood of $172. Drivers with GEICO might save as much as $192 a year, and Travelers customers might reduce rates by $222 a year.
To find out how much you can save, click here to get quotes or quote rates from the companies below.
It’s important to note that these premiums are averages across all ages of drivers and types of vehicles and and are not calculated with a vehicle location for 20 year old guys. So the company that has the cheapest rates for you may not even be in the list above. That illustrates why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.
One of the many criteria that are looked at to determine car insurance rates is your zip code in Denver. Areas with increased crime or more people will most likely have higher rates, whereas more rural areas benefit from lower rates.
The illustration below shows the most expensive places in Colorado for 20 year old guys to buy auto insurance in. Denver is listed at #1 with the yearly price of $1,439 for the average policyholder, which is around $120 each month.
|Rank||City||Premium Per Year|
|Start a Quote Go|
Prices are approximated as the specific geographic location can decrease or increase premium rates considerably.
The example below shows how choosing a deductible can change insurance costs when researching cheap insurance for 20 year old guys. The prices are based on a single female driver, full physical damage coverage, and no discounts are factored in.
In the chart above, a 50-year-old driver could cut expenses by $280 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $422 by selecting a $1,000 deductible. Younger drivers, like the 20-year-old example, could shave up to $706 or more by choosing a larger deductible amount. If you make the decision to raise deductibles, it is important to have enough funds in savings to allow you to pay the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
Difference between liability only and full coverage rates
Lowering the price of insurance should be important to most people, and one great way to buy cheap insurance for 20 year old guys is to not pay for full coverage. The information below compares car insurance costs with and without physical damage coverage. The price estimates are based on no violations or claims, $250 deductibles, drivers are not married, and no other discounts are factored in.
Averaged for all age groups, comprehensive and collision coverage on your policy costs $1,845 per year more than carrying just liability coverage. That is a large expense and it proposes the question if buying full coverage is a waste of money. There isn’t a written rule to eliminate physical damage insurance, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it could be time to drop full coverage.
There are some scenarios where dropping full coverage is not financially feasible. If you haven’t satisfied your loan, you have to carry full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should keep full coverage.
Why you should be shopping around
Denver insurance rates are impacted by many things that can increase the price of your policy. Simply improving your credit, buying a different home, or getting a ticket for careless driving may cause policy rate changes that can cause some rates to be much cheaper than others.
Additionally, insurance companies file new rates at least once a year in order to protect their financial rating. Unexpectedly high claims may cause rate increases, while better underwriting can produce cheaper Denver car insurance rates.
The bar chart below shows the company with the cheapest car insurance in Denver, CO for a 30-year-old male driver with no prior claims, no tickets, and excellent credit. If we estimate prices based on his personal risk profile, The Hartford has the best car insurance rates in Denver at $1,128 a year. This is $450 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are also on the list of the best Denver, CO auto insurance companies.
In the next rate comparison, we’ll give the driver in the first example an accident claim, a lower credit score, and a blemish on his driving record. Due to the fact that every auto insurer has a proprietary method for establishing rates, comparing quotes will most likely result in a new list of affordable Denver car insurance companies as shown below.
Travelers now has the best price in Denver, CO with State Farm, American Family, Grange, and Amica now being in the top five. This example shows why consumers need to take the time to shop around with many companies when trying to get the most budget-friendly insurance rates for 20 year old guys.
Insurance rates can be determined by many things and change frequently, so the most affordable company six months ago may now be priced much higher than other options.
Tips for finding more affordable auto insurance for 20 year old guys
Here are some of the better money-saving solutions that can help you buy low-cost coverage.
- Maintain a safe distance and avoid accidents
- Drive a car with a high safety rating
- Drop full coverage on older vehicles
- Bundle car and home insurance and save money
- Clean up your credit
- Shop around once a year for cheaper rates
The last idea is extremely valuable, as was emphasized in the prior article. Car insurance rates vary greatly, so don’t be hesitant to buy from a different company if a cheaper rate is available.
We understand brand loyalty, but we do not recommend it if that inflexibility results in costing you hundreds of dollars a year. In just a few minutes you could compare rates and find cheaper insurance for 20 year old guys in Denver.
If you aren’t sure which coverage to buy and prefer to have the advice of a professional agent when comparing insurance rates for 20 year old guys, the agents below can help you make a decision which auto insurance coverages would be the best in your situation.
To locate an agency near you, click the link after the list or click here to compare price quotes.
Caramel Russell-Rouse – State Farm Insurance Agent
999 S Monaco Pkwy #200 – Denver, CO 80224 – (303) 424-0420
Blanca Kerschen – State Farm Insurance Agent
4840 Chambers Rd b – Denver, CO 80239 – (303) 595-9000
Hiram Licea – State Farm Insurance Agent
3600 Morrison Rd – Denver, CO 80219 – (303) 935-7475