Auto insurance in Colorado

For drivers with “excellent” credit scores, the average cost of car insurance in Colorado is $588 per year for minimum, state-mandated coverage, according to data from the Consumer Federation of America. Drivers with lower credit scores tend to pay more, and those with “poor” credit scores pay an average of $1,028 per year. Rates can vary widely depending on where you live, and recommended coverage tends to cost significantly more than the state minimum.

Car insurance rates are set based on your insurer’s estimate of how risky it is to insure you. Insurers typically focus on your age, driving record, and location. But they’ll likely also consider factors like your credit score, your car’s safety features, and its market value. In parts of Colorado prone to hailstorms, drivers with comprehensive coverage may pay higher-than-average rates.

At Kin, a basic car insurance policy includes liability coverage, which applies to injuries or damage you cause to others. ‘Full coverage’ adds collision (for damage to your car from an accident) and comprehensive (for damage from non-collision events, like theft, fire, or hail). You can get even more protection with optional policy add-ons that provide coverage if you’re hit by a driver with little or no insurance.

With most insurers, including Kin, routine maintenance, mechanical breakdowns, and normal wear and tear aren’t covered by your car insurance. It also doesn’t cover personal items, even if they were in your car when they got damaged or stolen — that’s typically covered by your homeowners or renters insurance.

Colorado sets state minimum requirements for car insurance, but it’s important to consider your unique situation rather than automatically opting for the minimum. Many experts suggest carrying enough liability coverage to protect your savings and other assets in case you’re sued after a severe accident. If you have a car loan or lease, your lender will likely require full coverage (collision and comprehensive).

Yes, Colorado law requires every registered vehicle to carry liability insurance. In order to get a license plate in the state, you’ll need to show proof of auto insurance.

In Colorado, all drivers must carry liability insurance, which covers injuries and damage you cause if you’re at fault in an accident. State minimum liability coverage includes:

• $25,000 bodily injury per person

• $50,000 bodily injury per accident

• $15,000 property damage per accident

With roughly one in five Colorado drivers uninsured, you’ll likely want to consider adding Uninsured/Underinsured Motorist coverage, which can help pay for your injuries if you’re hit by a driver with little or no insurance. Even if you own your car outright, comprehensive coverage is still worth considering given Colorado’s frequent hailstorms.