The words “affordable” and “auto insurance” really don’t belong together, in particular when comparison shopping for the lowest insurance rates for 4×4 vehicles. Let’s start off by going over a few of the things that have an effect on auto insurance prices, and find a way to reduce the price of your next policy.
For off-road vehicles, one of the big considerations that aid in calculating auto insurance rates is where your car is garaged in Denver. Cities with larger populations or higher claim trends will most likely pay more, whereas areas with less people or fewer weather incidents have the enjoyment of a little cheaper coverage.
The table below lists the most expensive places in Colorado for 4×4 vehicles to purchase auto insurance in. Denver is ranked at #3 costing $1,397 for the average insured, which is about $116 monthly.
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Rates are comparative as the specific area where the vehicle is garaged can alter coverage rates significantly.
Determining which company has the cheapest car insurance rates for 4×4 vehicles requires more work in order to find the most economical policy.
Each insurer has their own unique process to set their prices, so let’s rank the car insurance companies that tend to have lower prices in Denver, CO. It’s important that readers know that Denver car insurance rates are calculated based on many things which can significantly increase or decrease the price you have to pay. Simply getting older, marrying your spouse, or getting into an accident can trigger price changes resulting in some rates now being affordable when they were higher priced.
Cheapest Insurance Rates for 4×4’s
The Hartford generally has some of the lowest car insurance rates in Denver at around $859 each year. This is $719 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, GEICO, and Nationwide also qualify as some of the cheapest Denver, CO car insurance companies.
As the rates illustrate above, if you are insured with Grange and switched to The Hartford, you may realize a yearly savings of roughly $99. Insureds with USAA might save as much as $140 a year, and GEICO policyholders might reduce rates by $282 a year.
To see if you’re overpaying, click here to start your custom quote or feel free to get quotes from the companies below.
It’s important to note that these policy rates are averages for all drivers and vehicles and and are not figured with an exact zip code location for 4×4 vehicles. So the insurer that fits your needs best may not even be in the list above. That affirms the importance of why you need to get car insurance quotes using your own specific driver information and vehicle.
The illustration below shows how choosing a deductible can increase or decrease premium costs when quoting cheap insurance for 4×4 vehicles. The price estimates are based on a married male driver, comprehensive and collision coverage, and no discounts are applied.
The data above shows that a 40-year-old driver could lower rates by $330 a year by increasing from a $100 deductible to a $500 deductible, or save $498 by switching to a $1,000 deductible. Even younger drivers, like the 20-year-old example, could shave as much as $1,110 or more by using higher deductibles when buying full coverage. If you do decide to increase your deductibles, it is essential to have enough savings set aside to allow you to pay the extra out-of-pocket expense associated with higher deductibles.
How to get discounts on Denver insurance rates
Insurance providers that offer coverage for 4×4 vehicles may provide rate discounts that could potentially reduce rates by as much as 35% if you can meet the requirements. A few popular companies and a selection of discounts are outlined below.
- State Farm policyholders can earn discounts including anti-theft, passive restraint, Steer Clear safe driver discount, multiple autos, good driver, and Drive Safe & Save.
- Nationwide may have discounts that include easy pay, family plan, business or organization, anti-theft, and good student.
- GEICO offers discounts for seat belt use, federal employee, daytime running lights, emergency military deployment, and defensive driver.
- AAA may include discounts for good student, good driver, education and occupation, AAA membership discount, multi-policy, and anti-theft.
- 21st Century has discounts for early bird, teen driver, driver training, theft prevention, anti-lock brakes, and automatic seat belts.
- The Hartford offers premium reductions for defensive driver, good student, vehicle fuel type, anti-theft, and bundle.
The diagram below shows the comparison of insurance premiums with and without policy discounts. The premiums assume a male driver, no violations or claims, Colorado state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with claim-free, multiple policy, safe-driver, homeowner, multiple vehicle, and accident-free discounts applied. In this example, theaverage amount saved on car insurance for 4×4 vehicles is 28% or $750.
Do you need full coverage?
Saving money on car insurance is important to most vehicle owners, and a great way to save on the cost of insurance for 4×4 vehicles is to buy liability only. The illustration below shows the comparison of insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Colorado. Data assumes no claims or driving violations, $1,000 deductibles, marital status is single, and no discounts are applied to the premium.
On average, physical damage insurance costs an extra $1,476 per year over liability only. That is a big expense that brings up the question when is the right time to remove full coverage. There is no set guideline for excluding physical damage coverage on your policy, but there is a general school of thought. If the yearly cost of full coverage is about 10% or more of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
The importance of shopping around
Colorado car insurance rates are determined by lots of factors that may substantially change the price of coverage. Simply having a birthday, getting divorced, or getting a few speeding tickets can produce rate changes that can make some companies cheaper than competitors. In addition, auto insurance companies modify rates every year or even multiple times each year in order to be able to pay unexpected claims. Heavy losses can result in a rate increase, while lower claims can cause cheaper Denver car insurance rates.
To help illustrate this point, the bar chart below analyzes the cheapest car insurance in Denver, CO for a 30-year-old male driver with no accidents or violations, and a decent credit rating. If we compare prices based on his current risk factors, The Hartford might offer the best car insurance rates in Denver at $1,090 annually. This is $488 less than the average rate paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are the remaining top five cheapest Denver, CO auto insurance companies.
Let’s now give the driver in the first example an accident claim, bad credit, and a speeding ticket. Since every car insurance company has a unique formula for filing rates in each state, comparing prices may now show a completely different list of affordable Denver car insurance companies as shown below.
Auto-Owners now has the best auto insurance rate in Denver, CO with State Farm, American Family, Progressive, and USAA now rounding out the top five. This illustrates why Colorado drivers need to shop around when trying to get the best car insurance quotes for 4×4 vehicles. Insurance prices can be altered by many factors and can decrease or increase without notice, so the most affordable company when you last compared rates may now be quite expensive.