The car, truck, or SUV needing coverage is a large factor that determines whether or not you can buy low-cost coverage for drivers under 25. Vehicles with more horsepower, poor safety features, or an increased likelihood of liability claims will cost more to insure than more economical and safe models.
The data below features car insurance costs for a number of the more affordable vehicles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$3,522|
|Honda CR-V EX 2WD||$3,530|
|Ford Escape XLT 4WD||$3,575|
|Honda Odyssey LX||$3,872|
|Ford F-150 XL Regular Cab 4WD||$3,924|
|Ford Explorer XLT AWD||$3,929|
|Ford Edge Limited 2WD||$4,132|
|Ford Focus SE 4-Dr Sedan||$4,140|
|Volkswagen Jetta S 4-Dr Sedan||$4,184|
|Chevrolet Equinox LS AWD||$4,191|
|Chevrolet Impala LT||$4,184|
|Toyota RAV4 Sport 4WD||$4,189|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$4,237|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$4,243|
|Chevrolet Malibu LT||$4,237|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$4,247|
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Prices based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in specific Denver, CO garaging location which can revise coverage rates significantly.
Based upon these rates, we can tell that makes and models like the Honda Accord, Honda CR-V, Ford Escape, and Honda Odyssey will definitely be a few of the more affordable vehicles to insure for drivers age 25 and younger. The price of auto insurance will tend to be higher just due to the fact that there is more claim exposure for drivers under 25, but generally speaking those makes and models will probably have the cheapest car insurance rates that you are likely to find.
For drivers age 25 and younger, one of the big things that are used to help calculate insurance cost is where your car is garaged in Denver. More populated areas will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates get the luxury of paying less.
The illustration below lists the most costly cities in Colorado for drivers under 25 to buy an auto insurance policy in. Denver makes the list at #2 with the yearly price of $1,397 for the average policyholder, which is around $116 monthly.
|Rank||City||Premium Per Year|
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Premium costs are estimated as the garaging address in Denver can revise premiums greatly.
The diagram below illustrates how your choice of deductibles can influence insurance costs when quoting cheap insurance for drivers under 25. The premium estimates are based on a married female driver, full physical damage coverage, and no discounts are taken into consideration.
The chart above illustrates that a 40-year-old driver could lower rates by $324 a year by increasing from a $100 deductible to a $500 deductible, or save $488 by choosing a $1,000 deductible. Younger drivers, like the age 20 example, could save $802 every year just by using higher deductibles.
If you do decide to increase your deductibles, it’s a good idea to have additional funds in a savings account to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Discounts on Denver insurance
Insurance providers that provide coverage for drivers under 25 may have special discounts that could reduce prices by 25% or more if you are eligible for them. Companies and a summarized list of policyholder discounts can be read below.
- Farmers Insurance offers discounts including switch companies, teen driver, early shopping, bundle discounts, alternative fuel, and distant student.
- Esurance offers discounts for multi-car, multi-policy, homeowner, emergency road assistance, paid-in-full, and claim free.
- State Farm includes discounts for good student, anti-theft, student away at school, Steer Clear safe driver discount, safe vehicle, multiple policy, and accident-free.
- GEICO has discounts for defensive driver, seat belt use, good student, anti-theft, multi-policy, air bags, and military active duty.
- Allstate may have discounts that include multi-policy, 55 and retired, anti-lock brakes, good payer, eSmart discount, and safe driver.
The information below visualizes the comparison of auto insurance rates with and without discounts applied to the policy premium. The data assumes a female driver, no driving violations, no at-fault accidents, Colorado state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with paperless filing, vehicle safety, anti-theft, good student, paid-in-full, and continuous coverage discounts applied. When drivers take advantage of discounts, theaverage amount saved on auto insurance for drivers under 25 is 21% or $507.
Impact of careless driving on Denver auto insurance rates
The obvious way to score good auto insurance rates in Colorado for drivers age 25 and younger is to be a safe driver and avoid tickets and accidents. The information below illustrates how speeding tickets and at-fault claims increase insurance costs for each different age group. The data assumes a married female driver, full coverage, $250 deductibles, and no discounts are applied.
The chart shows that the average cost of car insurance in Denver per year with a clean driving record and no accidents is $1,423. Get one speeding ticket and the average cost rises to $1,657, an increase of $234 each year. Then add two accidents along with the one speeding ticket and the yearly cost of auto insurance for drivers under 25 jumps again to an average of $3,672. That’s an increase of $2,249, or $187 per month, just for not driving safely!
Here’s why price comparisons are so important
Colorado auto insurance rates are impacted by many factors which can substantially change your annual premium. Improving your credit score, adding a teenager to your policy, or getting into an accident can cause premium changes resulting in some rates now being more affordable than the competition. And not only may your rating factors change, but insurers modify rates as needed in order to offset underwriting gains or losses. Higher than normal claim frequency or severity may result in additional premium costs, while a profitable period may produce cheaper Denver car insurance rates.
For example, the data below shows the company with the cheapest car insurance in Denver, CO for a 30-year-old male driver with no violations or accidents, and a decent credit rating. If we estimate rates based on his current rating profile, The Hartford might offer the most affordable car insurance rates in Denver at $1,084 per year. This is $494 less than the average policy premium paid by Colorado drivers of $1,578. Grange, USAA, GEICO, and Nationwide are also included in the cheapest Denver, CO auto insurance companies.
Now let’s give the driver from above a claim, slightly worse credit, and a traffic citation. Since every car insurance company uses their own calculation to set their prices, analyzing rates will most likely result in a significantly different list of the cheapest car insurance companies in Denver as shown below.
Travelers now has the best insurance rate in Denver with State Farm, American Family, Progressive, and Amica also having competitive pricing. This example demonstrates why it is critical to compare many different companies to get cheap car insurance rates for drivers under 25. Car insurance prices can be determined by many risk factors and can change without notice, so the best option the last time you shopped around may now be quite expensive.