Who Has the Cheapest Auto Insurance for Drivers with Good Credit in Denver?

One of the many criteria that determine the amount you pay each year for auto insurance is the neighborhood you call home. Areas with more people or higher crime rates are more likely to pay higher prices, whereas areas with less congestion have the luxury of cheap car insurance rates.

The table below shows the most expensive cities in Colorado for drivers with good credit to buy an auto insurance policy in. Denver is listed at #2 with a yearly cost of $1,397 for the average policyholder, which is approximately $116 monthly.

Prices are approximated as zip code location can influence auto insurance rates significantly.

The vehicle you are seeking coverage for is one of the main factors when comparison shopping for the most economical auto insurance for drivers with good credit. Vehicles with economical engines, modern passenger safety features, or a low likelihood of having liability claims will cost quite a bit less to insure than fast, unsafe models. The next table outlines insurance rates for some of the most economical vehicles to buy insurance for.

Data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include multi-policy, safe-driver, multi-vehicle, homeowner, and claim-free. Rate quotes do not factor in Denver, CO location which can revise coverage prices substantially.

Based on these rates, we can assume that models like the Toyota Prius, Honda Accord, Ford Escape, Honda Civic, and Honda CR-V should be some of the cheapest vehicles to insure for financially responsible drivers.

How careless driving impacts insurance rates

The common sense way to snag cheap insurance rates in Colorado for financially responsible drivers is to pay attention while driving and have a clean driving record. The example below highlights how speeding tickets and at-fault accidents can increase yearly insurance costs for different age groups of insureds. Data assumes a single male driver, full physical damage coverage, $1,000 deductibles, and no policy discounts are applied.

The data above shows the average cost of a car insurance policy in Denver per year with no violations or accidents is $1,993. Factor in one speeding ticket and the average cost jumps to $2,250, an increase of $258 each year. Now add in one accident along with the one speeding ticket and the 12-month cost of insurance for drivers with good credit increases to an average of $2,962. That’s an increase of $969, or $81 per month, just for not driving responsibly!

Full coverage rates vs. liability-only

Reducing premiums for insurance is the goal of most vehicle owners, and one of the best ways to buy cheap insurance for drivers with good credit is to not pay for full coverage. The illustration below visualizes the comparison of insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in Colorado. The price estimates are based on no accidents, no driving violations, $1,000 deductibles, single status, and no other discounts are factored in.

Averaged for all age groups, comp and collision coverage costs $1,598 per year over and above liability coverage. That is a significant amount which raises the question if paying for full coverage is worth it. There isn’t a steadfast formula of when to exclude comprehensive and collision coverage on your policy, but there is a general school of thought. If the annual cost of your full coverage insurance is more than about 10% of the settlement you would receive from your company, then you might want to think about dropping full coverage.

There are some circumstances where removing full coverage is not a good plan. If you haven’t paid off your loan, you have to keep full coverage to protect the lienholder’s interest in the vehicle. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should maintain full coverage.

Get discount Denver car insurance rates

Insurers that offer cheap quotes for drivers with good credit may also offer premium discounts that could lower prices by as much as 35% or more if you are eligible. Companies and a partial list of their discounts are detailed below.

• Travelers may have discounts that include payment discounts, new car, multi-policy, early quote, and continuous insurance.
• 21st Century offers discounts including driver training, 55 and older, homeowners, defensive driver, and teen driver.
• State Farm policyholders can earn discounts including driver’s education, multiple policy, student away at school, Drive Safe & Save, good student, multiple autos, and safe vehicle.
• GEICO has savings for driver training, military active duty, daytime running lights, multi-vehicle, and seat belt use.
• SAFECO includes discounts for safe driver, bundle discounts, multi-car, anti-theft, drive less, homeowner, and teen safe driver.
• AAA offers premium reductions for multi-policy, education and occupation, good driver, anti-theft, pay-in-full, and multi-car.

The diagram below shows the difference between auto insurance costs with and without discounts applied. The rates are based on a male driver, no accidents, no driving violations, Colorado state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with accident-free, claim-free, vehicle safety, defensive driving course, marriage, and passive restraint discounts applied. When discounts are factored in, the average amount saved each year on insurance for drivers with good credit is 28% or $501.

Why you should compare rates

Denver insurance rates are impacted by many factors which can substantially change the price you pay. Simply getting older, buying a different vehicle, or getting a few speeding tickets can trigger rate changes that may make certain companies cheaper than before.

Also, car insurance companies modify pricing without warning in order to maintain liquidity for claims. Unexpectedly high claims may cause a rate increase, while profitable underwriting may produce lower-cost Denver car insurance rates.

To illustrate this point, the bar chart below analyzes the cheapest car insurance in Denver, CO for a 35-year-old female driver with no prior claims, no tickets, and a good credit history. If we estimate rates based on her current rating profile, The Hartford offers the most affordable car insurance rates in Denver at $1,080 annually. This is $498 less than the average rate paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and Auto-Owners are the remaining cheapest Denver, CO auto insurance companies.

Now we will pretend the driver from the first set of rates an accident claim, poor credit, and a blemish on her driving record. Since each auto insurance company has their own guidelines to set their prices, analyzing rates will most likely result in a slightly different list of the cheapest companies as shown below.

Travelers now has the best insurance rate in Denver with State Farm, American Family, Grange, and Progressive now being in the top five. This example demonstrates why Colorado drivers need to compare as many rates as possible when trying to get the lowest insurance rates for drivers with good credit. Prices are impacted by many risk factors and change substantially, so the best price two years ago may now be an over-priced policy.