Car Insurance in Colorado in 2024: What You Need to Know

Car insurance is required by law for all drivers in Colorado. With policy rates and regulations subject to change each year, researching your options for 2024 is important. 


Colorado’s Minimum Insurance Requirements

Colorado has basic minimum requirements for auto insurance coverage that every driver must carry to legally drive in the state. These required coverages include:

Bodily Injury Liability

Bodily Injury Liability insurance covers medical expenses if you injure someone else in an accident. In Colorado, you must carry at least $25,000 per person and $50,000 per accident.

Property Damage Liability

This covers repairs if you damage someone else’s property in an accident, such as another vehicle. The minimum required coverage in Colorado is $15,000.


Uninsured/Underinsured Motorist Bodily Injury

Uninsured/Underinsured Motorist Bodily Injury coverage protects you if you are injured in a collision caused by a driver lacking sufficient insurance to fully compensate you for your damages. Colorado requires minimum Uninsured/Underinsured Motorist limits of $25,000 per person and $50,000 per accident.

Personal Injury Protection

Personal Injury Protection, also called PIP insurance, covers your medical expenses and lost wages if you are injured in a car accident, regardless of who is at fault. The minimum required PIP coverage in Colorado is $50,000.

Meeting these basic minimum limits is the bare minimum required by law and will not provide full protection in most serious accident scenarios. It is generally recommended that drivers purchase more than the state minimums to better protect themselves financially.

Factors That Impact Car Insurance Rates in Colorado

When shopping for car insurance in Colorado, there are several factors that will impact your premium rates. Understanding how insurers assess risk can help you save money on your policy. Some key factors that affect rates include:

Driving Record

Your driving history, including any tickets or accidents, is one of the strongest predictors of risk used by insurers. Clean driving records result in lower rates while violations and at-fault accidents raise rates significantly. Violations and accidents stay on your record for 3-5 years typically.

Credit-Based Insurance Scores

In Colorado, insurers are permitted to use a statistical analysis of your credit report and payment history called a credit-based insurance score. Strong credit correlates to lower risk and lower rates on average. However, many insurers will still provide competitive quotes for drivers with less-than-perfect credit histories.

Vehicle Type and Year

Newer, safer, and less expensive vehicles to insure generally result in lower premiums. Sports cars, luxury vehicles, and off-road vehicles carry higher comprehensive and collision premiums due to the higher repair costs associated with them.

Bodily Injury Liability Limits

Opting for higher Bodily Injury and Uninsured/Underinsured Motorist limits increases coverage but also increases premium costs. Carefully evaluate your limits based on your assets and risk tolerance.


Higher deductibles (the amount you pay out-of-pocket on a claim before insurance kicks in) result in lower premium costs. However, consider your ability to pay a higher deductible should an accident occur.


Discounts for things like anti-theft devices, good student status, bundling policies, multi-policy/multi-vehicle, and good drivers can significantly lower your car insurance rates.

Shopping for Car Insurance Quotes in Colorado

The best way to find an affordable and comprehensive car insurance policy is to get quotes from multiple highly rated insurers. By taking the time to get personalized quotes from several companies, you can find the right balance of coverage and price. Here are some tips for shopping for car insurance quotes in Colorado:

  • Request quotes from national insurers like GEICO, State Farm, Allstate, Farmers, Liberty Mutual, and Progressive, which have a strong market presence in Colorado. Additionally, consider local insurers like USAA, Shelter, and PEMCO that may offer competitive rates.
  • Use insurance quote comparison websites like QuoteWizard or Consumer Reports to efficiently get quotes from multiple companies in one place. Some insurers also allow you to get quick quotes on their websites.
  • Provide accurate information about yourself (name, address, date of birth), your driving history, vehicle(s) you own, and the coverage you want when requesting quotes so you receive accurate price estimates.
  • Ask about discounts you may qualify for, like a good student, multi-policy, anti-theft device, and multi-vehicle discounts. Factor these into your quote comparisons.
  • Always talk to a live agent if you have questions and want personalized service. Ask about coverage details, as quotes can vary significantly between companies.

By spending time comparing auto insurance quotes from reputable companies, you maximize your chances of finding quality coverage at the most competitive price. Be sure to fully understand your policy details and test various liability limits as you shop.

Auto Insurance Regulations and Rate Changes in Colorado

Auto insurance rates and regulations are subject to change each year in Colorado. Understanding expected changes for 2024 can help with planning for next year’s coverage costs. Some key auto insurance regulatory changes and rate updates to watch include:

  • The Colorado Division of Insurance does an annual review of actuarial rate change requests by companies. For 2024, initial filings indicate approved rate increases could average between 5-10% depending on the insurer and a driver’s individual risk factors. However, final rates are still pending approval in late 2023.
  • Electric vehicle discounts – In 2024, insurance companies may expand usage-based discounts for electric vehicles based on lower average claims costs compared to gas-powered vehicles. This could make EV insurance more affordable.
  • Teen driver regulations – New legislation is being considered to tighten restrictions on young and inexperienced drivers, such as Graduated Driver Licensing reforms. This could impact teen auto insurance rates positively over time.
  • New PIP benefit limits – Proposals are in the works to potentially increase the minimum required PIP medical coverage limit from $50,000 to $75,000 or higher. This would provide greater injury protection but increase policy costs.
  • Usage-based “pay-per-mile” policies – More insurers are expected to offer policies with rates based in part on actual miles driven rather than estimates as vehicle telematics become more standard. This makes rates more personalized.

By staying on top of expected changes and new regulations in 2024, drivers can prepare financially and potentially save by getting ahead of any rate increases or shifts in coverage details. Monitoring the latest updates is key.

How to Lower Your Car Insurance Rates in Colorado

While insurance rates are subject to factors outside an individual’s control, there are proactive steps you can take to potentially save money:

Improve Your Credit Score

As mentioned, insurers use credit-based scores to determine risk. Focusing on responsible credit behavior, like paying bills on time, can translate to better auto rates over time. Avoid applying for unnecessary credit that dings your report.

Take Defensive Driving Courses

Some companies offer premium discounts for completing courses addressing accident prevention techniques. This small investment could shave meaningful dollars off your bill.

Raise Your Deductibles

Increasing your Collision and Comprehensive deductibles lowers your insurer’s financial risk and saves on premiums, even if it means paying more toward potential claims.

Prune Non-Essential Coverages

Consider dropping Comprehensive and Collision coverage on older vehicles worth less than repair costs to only carry Liability. Garage your second car in winter for lower semi-annual rates.

Bundle Policies For Discounts

Certain insurers reward bundling Homeowners’ or Renters’ coverage with your auto policy. Group rates can beat shopping each separately.

Ask About Loyalty Discounts

Establish good relationships by maintaining continuous coverage. Loyal customers may earn premium reductions to avoid gaps in protection.

Check For Good Grades And Driver Safety Apps

Being a safe, responsible driver sets a strong example and gives a good reason for insurers to reward prudent actions with discounted rates over risky behavior.

Doing your diligence to benefit from savings opportunities helps maximize the value of your auto insurance investment. Small adjustments add up to potentially hundreds in annual premium savings.

Key Things to Consider When Purchasing Car Insurance in 2024

With policy and regulation changes expected, taking time now to thoughtfully plan your 2024 car insurance needs is important. Here are some final considerations:

  • Review your liability limits and ensure adequate protection based on your assets. Minimums may no longer be recommended.
  • Shop for the right balance of comprehensive coverage at a price you’re comfortable paying, given your driving needs and vehicle’s value.
  • Inquire if usage-based policies could offer personalized savings compared to estimators. Telematics introduces customization potential.
  • Factor expected 5-10% average rate increases into budget planning where possible by reviewing costs in late 2023.

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