Who Has the Cheapest Car Insurance for Young Drivers in Colorado Springs?

It’s hard to miss the ads from companies like The General and Progressive that make claims of dirt cheap rates, so drivers just need to pick the one with the best commercial, right?

Regrettably, it’s not quite that easy, as there are a ton of unknowns like what deductibles you want to use, if you need full coverage or just liability, if you have maintained coverage continuously, and your date of birth. We know insurance is not everyone’s favorite topic, but in this article we will cover the different ways you can keep rates low and hopefully give you enough understanding to have a solid foundation to find cheaper car insurance in Colorado Springs.

One of the many things that are used to help calculate insurance cost is where your residence is. Cities with larger populations are more likely to have higher rates, whereas areas with less congestion have the luxury of cheap car insurance rates.

The information below lists the most costly cities in Colorado for young drivers in which to purchase auto insurance. Colorado Springs is ranked #10 with a yearly premium of $1,277 on average, which is around $106 monthly.

Premium amounts are approximated as the vehicle garaging location can modify insurance rates noticeably.

The type of vehicle requiring coverage is one of the biggest factors that determines whether or not you can buy the cheapest coverage for young drivers. Vehicles with limited top-end speed, good safety features, or a low likelihood of liability claims will cost significantly less to insure than adrenaline junky models.

The table below presents auto insurance rates for a selection of the cheapest automobiles to buy coverage for.

Table data represents single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium costs do not factor in specific garaging location which can impact coverage prices substantially.

Based upon the table data, we can assume that makes and models like the Honda CR-V, Ford Escape, and Toyota Prius will definitely be a few of the most economical vehicles to insure for youthful drivers. Auto insurance rates will be more expensive because there is more exposure for young drivers, but in general those vehicles will probably have the best rates available.

Shopping around for low-cost car insurance is tough enough, and finding out which companies quote the lowest-priced insurance rates for young drivers will involve even more perseverance.

Every insurance company uses their own formula for setting rates, so first let’s look at the rankings for the insurance companies that tend to be cheaper in Colorado Springs, CO. It’s a good idea to be aware that Colorado Springs insurance rates are based on many factors that will increase or decrease the cost of having a policy. Events such as a birthday, adding a teenager to your policy, or having an at-fault accident can trigger changes in premium that may make certain companies cheaper than competitors.

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The Hartford may offer some of the lowest car insurance rates in Colorado Springs at around $859 per year. Grange, USAA, Nationwide, and Travelers also qualify as some of the best Colorado Springs, CO auto insurance companies.

As the example above demonstrates, if you are a policyholder with USAA and switched to The Hartford, you could see annual savings of approximately $170. Policyholders with Nationwide may save as much as $250 a year, and Travelers insureds might realize rate reductions of up to $324 a year.

It’s important to note that these premium estimates are averaged across all ages of drivers and types of vehicles and do not take into consideration a specific zip code for young drivers. So the insurer that can offer you the best rate may not even be in the top 21 companies in the list above. That illustrates why you need to quote rates from many companies using your own driver data and vehicle information.

Rate difference between full and liability-only coverage

Saving on insurance is the goal of the majority of people, and one of the fastest ways to reduce the cost of insurance for young drivers is to only buy liability insurance. The illustration below illustrates the comparison of auto insurance rates with full coverage compared to only the Colorado minimum liability coverage. The prices are based on no tickets, no at-fault accidents, $1,000 deductibles, single marital status, and no other discounts are factored in.

As an overall average, full coverage costs an extra $1,476 per year more than just insuring for liability. Many drivers will wonder if buying full coverage is worth the expense. There is no set guideline to drop comprehensive and collision coverage on your policy, but there is a broad guideline. If the yearly cost of full coverage is more than around 10% of the settlement you would receive from your company, then it might be time to buy liability only.

The illustration below shows how choosing a deductible can influence annual premium costs when quoting cheap insurance for young drivers. The prices are based on a married female driver, full coverage, and no policy discounts are applied.

As shown above, a 30-year-old driver could lower rates by $376 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $566 by using a $1,000 deductible. Even younger insureds, such as the Age 20 example, could roll back prices $802 or even more by choosing larger deductibles on their policy.

If you do decide to increase your deductibles, it will now be necessary to have spare funds to offset the extra out-of-pocket expense associated with higher deductibles.

The importance of shopping around

Colorado Springs insurance rates are based on many factors that will increase or decrease the cost of your policy. Turning one year older, having a teenage driver, or getting caught speeding can cause premium changes resulting in some companies being more affordable than others.

And not only may your rating factors change, but car insurance companies file new rates as needed in order to remain profitable. Significantly higher losses may cause more expensive premiums, while profitable underwriting may cause cheaper Colorado Springs car insurance rates.

The chart below shows rates for the cheapest car insurance in Colorado Springs, CO for a 35-year-old male driver with no prior accidents, a clean driving record, and good credit. When quoting prices based on his current risk profile, The Hartford might quote the best car insurance rates in Colorado Springs at $1,038 per year. This is $540 less than the average rate paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are the rest of the best Colorado Springs, CO auto insurance companies.

Let’s now give the driver from the above example an accident surcharge, less-than-perfect credit, and a few blemishes on his driving record. Since every car insurance company uses their own method to establish rates, analyzing rate quotes will most likely result in a significantly different list of cheap Colorado Springs auto insurance companies as shown below.

Auto-Owners now has the lowest price on auto insurance in Colorado Springs, CO with State Farm, American Family, Progressive, and Amica now rounding out the top five. This demonstrates why consumers need to take the time to compare many different companies to find the most affordable insurance rates for young drivers.

Auto insurance prices are calculated by many risk factors and can change without notice, so the best company three years ago may now be an over-priced policy.