You have probably watched the commercials from companies like GEICO, The General, and Nationwide that claim huge savings, so you just need to choose the one with the flashiest ad, right?
That is not the case, however, as there are many unknown factors like if full coverage is needed, your financial stability, if you are a man or woman, and if you have ever let your coverage lapse. We will try to teach you about the different ways to avoid overpaying and will give you a good start to your coverage search.
For bad credit, one of the big components that help determine the cost of insurance is your zip code in Colorado Springs. Cities with more crime and/or more people tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents have the luxury of cheap car insurance rates.
The illustration below shows the most costly cities in Colorado for low credit scores to purchase auto insurance in. Colorado Springs comes in at #7 with an annual premium of $1,329 for car insurance, which is around $111 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Aurora | $1,403 |
| 2 | Pueblo | $1,397 |
| 3 | Denver | $1,397 |
| 4 | Commerce City | $1,368 |
| 5 | Northglenn | $1,342 |
| 6 | Security-Widefield | $1,330 |
| 7 | Colorado Springs | $1,329 |
| 8 | Lakewood | $1,324 |
| 9 | Thornton | $1,320 |
| 10 | Centennial | $1,317 |
| 11 | Littleton | $1,306 |
| 12 | Ken Caryl | $1,274 |
| 13 | Westminster | $1,272 |
| 14 | Parker | $1,270 |
| 15 | Arvada | $1,256 |
| 16 | Highlands Ranch | $1,241 |
| 17 | Brighton | $1,235 |
| 18 | Castle Rock | $1,224 |
| 19 | Boulder | $1,195 |
| 20 | Longmont | $1,168 |
| Compare Prices Now Go | ||
Annual rates are comparative as zip code location can alter premium rates significantly.
Determining which companies offer the cheapest car insurance rates for low credit scores will require a little more work than just comparing rates from one or two companies. Each auto insurance company uses their own method for filing rates in each state, so to begin we’ll rank the lowest cost car insurance companies in Colorado.
It’s important to know that Colorado Springs car insurance rates are influenced by many factors that will increase or decrease the price you pay. Simply improving your credit, having a teen driver, or having an at-fault accident can trigger price changes resulting in some rates now being more affordable than others.
Find the Cheapest Auto Insurance in Colorado
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $825 |
| 2 | Grange | $978 |
| 3 | USAA | $1,009 |
| 4 | Nationwide | $1,109 |
| 5 | GEICO | $1,187 |
| 6 | Auto-Owners | $1,204 |
| 7 | Travelers | $1,207 |
| 8 | State Farm | $1,246 |
| 9 | American Family | $1,275 |
| 10 | Progressive | $1,362 |
| 11 | Amica | $1,394 |
| 12 | Allied | $1,483 |
| 13 | California Casualty | $1,488 |
| 14 | Farmers | $1,613 |
| 15 | Colorado Farm Bureau | $1,624 |
| 16 | MetLife | $1,830 |
| 17 | Allstate | $2,055 |
| 18 | Encompass | $2,165 |
| 19 | Safeco | $2,547 |
| 20 | Titan | $2,630 |
| Get Personalized Rates Go | ||
The Hartford generally has some of the most affordable car insurance rates in Colorado Springs at around $825 annually. Grange, USAA, Nationwide, and GEICO also are some of the lowest-priced Colorado Springs, CO insurance companies.
In the above example, if you are a customer of Grange and switched to The Hartford, you could earn a yearly savings of in the neighborhood of $153. Customers with USAA could save as much as $184 a year, and Nationwide policyholders might lower prices by $284 a year.
To discover how much you can save, click here to get quotes or feel free to get quotes from the companies below.
Be aware that those premiums are averages for all insureds and vehicles and do not factor in a specific location for low credit scores. So the car insurance company that fits your needs best may not even be in the list above. That helps illustrate why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.
Impact of violations and accidents on rates
One of the best ways to get low car insurance premiums in Colorado Springs for bad credit is to drive carefully and avoid accidents and traffic violations. The example below highlights how traffic violations and at-fault accidents can drive up insurance rates for each age group. The premiums assume a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no policy discounts are applied.
The chart shows that the average cost of an auto insurance policy in Colorado per year with no accidents or violations is $1,410. Factor in two speeding tickets and the average cost swells to $1,875, an increase of $465 each year. Now add two accidents along with the two speeding tickets and the annual cost of car insurance for low credit scores jumps again to an average of $3,822. That’s an increase of $2,413, or $201 per month, just for being a careless driver!
Full coverage rates vs. liability-only
Lowering the price of car insurance is the goal of the majority of people, and one way to find cheaper insurance for low credit scores is to buy only liability coverage. The diagram below shows the comparison of annual premium costs with full physical damage coverage compared to only buying the minimum liability limits required in Colorado. The prices are based on no violations or claims, $500 deductibles, single marital status, and no discounts are factored in.
As an average for all age groups, physical damage coverage on your policy costs an extra $2,209 per year over liability only. That is a large expense which might make you wonder if paying for full coverage is a waste of money. There is no set guideline of when to phase out full coverage, but there is a general guideline you can use. If the annual cost of having full coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it’s probably a good time to buy liability coverage only.
There are some cases where removing full coverage is not in your best interest. If you still have a loan on your vehicle, you are required to maintain full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should keep full coverage in place.
Low rates today, overpriced tomorrow
Colorado Springs car insurance rates are impacted by many things which can significantly increase or decrease the cost of a policy. Simply having another birthday, increasing deductibles, or getting caught speeding can cause premium changes that can cause some rates to be cheaper than before. And not only may your rating factors change, but companies file new Colorado car insurance rates as needed in order to protect their financial rating. Higher than normal claim frequency or severity can result in price increases, while a better claims history may result in more affordable Colorado Springs car insurance rates.
To illustrate this point, the chart below shows the companies that have the cheapest car insurance in Colorado Springs, CO for a 30-year-old female driver with a clear driving record, no claims, and good credit. If we compare prices based on her personal risk profile, The Hartford might quote the most affordable car insurance rates in Colorado Springs at $998 each year. This is $580 less than the average premium paid by Colorado drivers of $1,578. Grange, USAA, Nationwide, and GEICO are the remainder of the most affordable Colorado Springs, CO auto insurance companies.
The example below compares rates after we give the driver from above a couple of claims, less-than-perfect credit, and a blemish on her driving record. Since each auto insurer has a unique approach for determining rates in each state, analyzing rates may now result in a substantially altered list of affordable companies as shown below.
Travelers now has the cheapest auto insurance in Colorado Springs, CO with State Farm, American Family, Progressive, and Amica completing the list. This example proves why it is crucial to perform a complete rate comparison to get the best insurance quotes for low credit scores. Car insurance prices are determined by many risk factors and can increase or decrease at any time, so the best price six months ago may now be one of the more expensive options.
If you wish to get help from a professional when comparing insurance rates for low credit scores, the professional agents shown below are willing to answer your questions and help you decide which coverage fits your budget.
To locate an agency near you, click the button at the bottom of the list.
- Chris Sutherland – State Farm Insurance Agent
6130 Barnes Rd #104 – Colorado Springs, CO 80922 – (719) 598-8211 - Nationwide Insurance: Jeffrey Lloyd Sudermann Agency
6455 N Union Blvd #104 – Colorado Springs, CO 80918 – (303) 974-7676 - Benson Insurance Group, LLC
5155 N Academy, #110 – Colorado Springs, CO 80918 – (719) 622-3079