Colorado Car Insurance Companies

Car insurance requirements are a matter defined by individual states rather than by the federal government, so the laws vary from state to state. State legislatures set the laws and then administrated by appointed insurance commissions in the individual state.

Enter your ZIP code into the FREE auto insurance comparison tool located above to start your search for the best rates today!

Colorado follows this general pattern. Most insurance information such as required limits of insurance for drivers, licensing requirements for insurance agents, rate setting for insurance companies, and status of insurance companies is provided by the state of Colorado's website.

Basic Insurance Required by Law in the State of Colorado

Basic insurance coverage required in the state of Colorado to legally drive are as follows:

• Bodily injury liability – your responsibility for injury to others if at-fault in an automobile accident - $25,000 per person and $50,000 per accident
• Property damage liability – your responsibility for damage to the property of others if you are at-fault in an automobile accident - $15,000 per accident
• $5,000 of medical payments coverage, which will pay for medical bills applying to injury to driver and passengers. This coverage must be declined in writing if not desired by the purchaser of the policy.
• Uninsured/underinsured motorist coverage pays for injury to you and your passengers if someone without or with inadequate insurance causes an accident. The suggested limits are the same as those for bodily injury liability.

Uninsured/underinsured motorist coverage also must be declined in writing by the policyholder, if not desired.

Note that in 2011, 15% of drivers in the state of Colorado were uninsured. As economic conditions worsen, individuals tend to not carry insurance.

Suggested Limits of Liability

The basic limits of liability are, considering the costs of inflation, inadequate. To adequately protect yourself, you should carry at least the following liability limits:

• $100,000 per person and $300,000 per accident as your responsibility for injury to others in an accident for which you are at fault.
• $50,000 per accident property damage liability
• $5,000 medical payments – it is recommended that this coverage be retained since it is relatively inexpensive. Admittedly, medical insurance would pay for this, but the costs of ambulances and helicopters may be beyond your medical insurance.
• $100,000 per person/$300,000 per accident uninsured motorists coverage is recommended also. Costs are small and the coverage is useful.

Protection for Your Own Property

Few individuals are able to purchase a vehicle without incurring a loan. Lenders require protection of their collateral by having you provide insurance. The two types of insurance required are:

• Comprehensive - covers perils not related to collisions such as theft, vandalism, natural disasters, fire, falling objects, animal damage, and civil disturbances.
• Collision – which covers just that – colliding with another vehicle or object

A deductible applies to both types of coverage. Deductibles are removed from settlements before payment is made to the policyholder and the lender. The lender often recommends the deductible amounts, but if you have a choice, be certain that you can afford the deductible.

On the other hand, deductibles can help you save money on premiums. A larger deductible will reduce your premiums.

Car Insurance in Colorado

Car insurance rates in Colorado vary, just as they do in other states. The following factors affect your insurance rate:

• Location of garaging – whether it is rural or urban
• Age of the driver – a teen driver or an elderly driver can pay higher rates
• Driving records – of all drivers on your policy- an accumulation of tickets for speeding, driving under the influence, as well as accidents
• Type of vehicle – this can affect the premiums you pay for comprehensive and collision because cost of repairs on specified vehicles can boost your insurance rates

Rates vary widely in Colorado because of the variations in terrain and population. Colorado spreads across the middle of the continental divide with the Rocky Mountains forming the backbone of the state.

On the eastern side of the Rockies, an urban area stretching almost from the Colorado/New Mexico border to the Colorado/Wyoming border has typically higher insurance rates. This urban area includes the cities of Fort Collins, Loveland, Denver, Colorado Springs, Pueblo, and Trinidad. The remainder of the state consists of rural or semi-rural towns, agricultural areas, and mountainous tourist areas.

Comparing Rates in Colorado

The state of Colorado, on their insurance website, has an application that allows you to compare rates based upon city of residence, limits of liability, and type of driver.

This can be accessed by going to the state website.

Saving Money on Car Insurance

There are a number of ways to save money on car insurance. Some of them are:

• Examine premiums and get comparative quotations once a year. A convenient date is the yearly anniversary of your insurance renewal.
• Keep your driving record and that of the members of your household clear. Teens will often respond to pacts that increase the portion of insurance they pay from part-time jobs or allowances.
• Pay bills on time to keep a good credit rating. Insurance companies examine credit ratings to determine insurability and rates for individuals.
• Be aware of your insurance needs to keep them realistic. Once a vehicle is paid for and of a certain age, raising the deductible for comprehensive and collision can reduce premiums. Then, too, there is a certain point at which economics determine it is no longer necessary to carry comprehensive and collision.
• Check the premiums for any new vehicle that you purchase to be sure that your insurance premiums will not increase considerably.
• Credits for safety features such as anti-lock brakes, passive restraint systems, enhanced air bag systems, and other items will reduce your premiums.
• Limiting the mileage you commute to work or school can reduce the premiums also.

Choosing an Agent and Insurance Company

Finding an agent and an insurance company begins with checking with your friends, family, and co-workers to find where they purchase their insurance. They can give you the names of reliable agents and companies that have served them well.

There are three ways to purchase insurance and get a quotation:

• Through an independent agent who represents a number of insurance companies
• Through agents who represent individual insurance companies
• Online, through websites sponsored by individual insurance companies

The difference among these sources is the way that they are paid. Independent agents receive a small percentage of the insurance premiums paid from the companies they represent; agents who represent individual insurance companies receive a salary from that company; and online websites operate for the particular insurance company. Agents must be licensed by the state in which they sell insurance, as are the companies that sponsor online websites.

Insurance companies, too, must be licensed to sell insurance in the state of Colorado. If you ask the company, they will indicate the states in which they are licensed. To check financial ratings of insurance companies, go to A.M.Best and enter the name of the name of the company.

To examine complaints about insurance companies in the state of Colorado, go to the insurance complaints records online.

In Colorado, as in most states, it is important for consumers to compare insurance premiums carefully, using all the tools available to you. A cautious consumer will check on their premiums annually as well as examine the ratings of his or her own insurance companies to determine stability.

Be sure to always compare your auto insurance quotes using our FREE search tool below. Entering your ZIP code will get your started today!