It would sure make life easier if we could simply give you the name of the one best car insurance company that has the lowest rates in Colorado. It’s not that simple, unfortunately, as there are many unknowns like how old you are, the deductible level you need, and the amount of liability coverage you want. We know insurance is not everyone’s favorite topic, but in this article we will cover the best ways to shop for cheaper coverage and will give you a good beginning to your search for cheaper coverage.
The make and model of vehicle you are insuring is a large consideration when shopping around for the most economical insurance for drivers under 25. Vehicles with more horsepower, poor safety features, or high incidents of liability claims will cost more to insure than more modest models. The table below outlines auto insurance prices for a number of the most cost-effective vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$3,386|
|Jeep Wrangler Sport 4WD 2-Dr||$3,466|
|Ford Escape Limited 4WD||$3,687|
|Ford F-150 XLT Super Cab 2WD||$3,770|
|Ford Focus S 4-Dr Sedan||$3,968|
|Honda Odyssey EX W/Rear Entertainment||$3,975|
|Ford Edge SEL AWD||$3,968|
|Toyota RAV4 4WD||$4,020|
|Chevrolet Malibu LS||$4,027|
|Chevrolet Impala LT||$4,020|
|Ford Explorer Eddie Bauer AWD||$4,069|
|Dodge Grand Caravan SXT||$4,078|
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Table data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium amounts do not factor in vehicle location which can modify premiums significantly.
Looking at the rates, you can expect models like the Honda CR-V, Jeep Wrangler, and Ford Escape are most likely going to be the cheapest vehicles to insure for drivers age 25 and younger. Prices will tend to be more expensive anyway because there is more liability risk for drivers under 25, but in general those makes and models will probably have the cheapest car insurance rates that you’ll find.
For drivers age 25 and younger, one of the big considerations that are looked at to determine the cost of insurance is where you keep your car. Areas with more people or more claims likely pay more, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.
The following table ranks the most costly cities in Colorado for drivers under 25 in which to buy car insurance. Aurora shows up at #3 with an annual premium of $1,375 for the average policy, which is around $115 each month.
|Rank||City||Average Per Year|
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Annual rates are estimated as the vehicle garaging location can revise premium rates greatly.
Finding out which company has the lowest-priced auto insurance rates for drivers under 25 will take more work in order to find a policy that fits your budget.
Every auto insurer uses their own formula to set policy rates, so let’s rank the auto insurance companies that tend to have lower prices in Aurora.
Find the Cheapest Auto Insurance for Young Drivers
|Rank||Company||Cost Per Year|
|14||Colorado Farm Bureau||$1,624|
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The Hartford normally has some of the cheapest car insurance rates in Aurora at around $834 per year. Grange, USAA, Nationwide, and GEICO also are some of the most economical Aurora, CO car insurance companies.
As depicted above, if you currently have a policy with GEICO and switched to Grange, you might realize an annual savings of roughly $238. Policyholders with Auto-Owners could save as much as $255 a year, and State Farm policyholders might lower prices by up to $260 a year.
Understand that those rates are averages for all drivers and vehicles in Colorado and do not factor in a specific zip code for drivers under 25. So the insurer that is best suited for you may not even be in the list above. That illustrates why you need to quote rates from as many companies as possible using your own specific driver information and vehicle.
How much more does full coverage cost in Aurora?
Finding cheaper auto insurance is probably important to the majority of drivers, and one great way to buy cheap insurance for drivers under 25 is to buy only liability coverage. The illustration below compares yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Colorado. The premium estimates are based on no driving violations, no at-fault accidents, $500 deductibles, marital status is single, and no other discounts are factored in.
If averaged out across all ages, physical damage insurance costs an additional $1,656 per year over and above liability coverage. That amount may make you wonder if buying full coverage is a waste of money. There isn’t a written rule to delete physical damage insurance, but there is a general school of thought. If the annual cost of your full coverage insurance is more than around 10% of the settlement you would receive from your company, then you may want to consider only buying liability coverage.
For example, let’s assume your vehicle’s book value is $3,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most you would receive is $2,000 after the policy deductible has been paid. If premium cost is more than $200 a year for full coverage, then it may be the right time to buy liability only.
There are some situations where removing full coverage is not in your best interest. If you haven’t satisfied your loan, you must maintain physical damage coverage in order to prevent your loan from defaulting. Also, if your savings is not enough to buy a different vehicle if your current one is in an accident, you should keep full coverage in place.
Discount Aurora auto insurance
Car insurance companies that sell policies for drivers under 25 may have discounts that could reduce prices by as much as 25% or more if you are eligible to receive them. Companies and the discounts they provide are outlined below.
- GEICO offers premium reductions for defensive driver, good student, military active duty, anti-theft, multi-vehicle, and federal employee.
- Auto-Owners Insurance has savings for teen driver, paperless, anti-theft, anti-lock brakes, student away at school, group or association, and safe vehicle.
- American Family may include discounts for Steer into Savings, defensive driver, mySafetyValet, accident-free, multi-vehicle, and TimeAway discount.
- Esurance includes discounts for good student, DriveSense, Pac-12 alumni, multi-policy, and anti-theft.
- Progressive policyholders can earn discounts including online signing, good student, homeowner, multi-vehicle, multi-policy, and continuous coverage.
- State Farm may offer discounts for good student, multiple policy, multiple autos, Steer Clear safe driver discount, good driver, accident-free, and Drive Safe & Save.
- AAA offers discounts for good student, anti-theft, good driver, pay-in-full, AAA membership discount, multi-car, and education and occupation.
The illustration below compares car insurance costs with and without discounts applied to the premium. The information is based on a female driver, no violations or claims, Colorado state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with continuous coverage, paid-in-full, paperless filing, vehicle safety, good student, and passive restraint discounts applied. When drivers take advantage of discounts, the average amount saved each year on auto insurance for drivers under 25 is 21% or $301.
The importance of comparing Aurora car insurance rates
Colorado auto insurance rates are determined by lots of factors that control the price of coverage. Simply having another birthday, increasing deductibles, or getting a reckless driving citation may cause policy rate changes that can now make some companies cheaper than competitors. Not only that, but insurers change premium rates at least once a year to adjust for gains or losses. Significantly higher claims can result in increased policy costs, while long-term profits may result in lower-cost Aurora car insurance rates.
For example, the graph below analyzes the cheapest car insurance in Aurora, CO for a 40-year-old female driver with no prior accidents, a clean driving record, and a good credit history. If we compare prices based on her personal profile, The Hartford has the lowest car insurance rates in Aurora at $1,074 per year. This is $504 less than the average rate paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are also included in the most affordable Aurora, CO auto insurance companies.
Now we will pretend the driver from the first rate comparison an accident surcharge, a lower credit score, and a blemish on her driving record. Due to the fact that every auto insurer has a different process to determine rates, comparing quotes may now present a substantially altered list of the cheapest companies as shown below.
Auto-Owners now has the cheapest price in Aurora, CO with State Farm, American Family, Progressive, and Amica now being in the top five. This demonstrates why consumers need to take the time to perform a complete rate comparison when trying to find cheap insurance rates for drivers under 25.
Rates are influenced by many different factors and change frequently, so the cheapest option the last time you compared rates may now be wasting a lot of money.