Home Blog Page 2

State Farm Auto Insurance Review – Pros & Cons

Photo of two cars crashed to eachother

Maybe your auto insurance requirements are only to satisfy the legal limits of your state; or maybe you wish to start a relationship with a company that sees auto insurance as a necessary component of a larger investment and retirement plan. In either scenario, you are likely to get quotes from State Farm insurance. State Farm is the number one auto insurance provider in the United States. In this review, we'll take a closer look at State Farm's product and performance and help you decide whether they offer a suitable solution to your insurance needs.

State Farm Auto Insurance
Review: What Is State Farm Auto Insurance?

Man holding a car keys

Image via Pexels

State Farm is the largest provider of general insurance policies and auto insurance policies in the United States. Founded nearly 100 years ago, State Farm insurance has been a stable and reliable company for decades. State Farm has around 90 billion dollars in yearly revenue, so it is one of the strongest insurers from a financial perspective on the market. The size of State Farm insurance allows them to provide a product for virtually every situation. If you have an insurance need, it's likely that a State Farm agent will be able to assist you.


State Farm uses a traditional model that utilizes business agents. Many clients of State Farm appreciate the chance to have face-to-face interactions with their insurance agent. In an era where many insurance companies are moving to a more technological or digital model, many consumers appreciate the traditional approach of State Farm.


Our State Farm Auto Insurance review also found that State Farm offers a wide variety of financial services. These include retirement accounts and mutual funds. State Farm is able to advise you on your insurance needs based on an overall perspective of your assets, investments, and retirement portfolio. State Farm is able to offer bonuses for bundling several of their premium services, and they advise you on what insurance packages make the most sense based on your unique financial situation.

State Farm Auto Insurance Review: Product Specs

Photo of a man offering a handshake

Image via Pexels

State Farm offers the typical range of insurance coverages found at any major insurance provider. These include property liability, medical liability, collision, comprehensive, and others. Additional coverage can be selected by customers and personalized with riders. Customers can select the amount of coverage they wish from the minimum required by law to policies that provide massive monetary protection. State Farm offers insurance for other areas of life beyond automobile coverage and even offers retirement and financial planning.


Pricing

Customers can select pricing options based on many factors. Factors customers can control are the amount of coverage, the types of coverage, the vehicles they are insuring, and whether they participate in premium reduction programs. Factors customers cannot control involve gender, geographic location, driving history, and others. State Farm has competitive pricing in most areas and is able to offer superior pricing to customers who are able to take advantage of their bundling programs.

​How It Compares

For our State Farm Auto Insurance review, we compared State Farm to several other competing insurance providers. We compared State Farm in terms of customer satisfaction, claims satisfaction, and financial security. The other insurance providers that we examined for the purpose of this review were:

  • Progressive
  • Nationwide
  • Travelers

State Farm Auto Insurance

State Farm Auto Insurance is the industry leader in virtually all forms of insurance. With a one hundred year history, this Fortune 500 company is a major player in the insurance market. They feature a brick and mortar network that allows customers to have face-to-face time with State Farm agents. Many customers appreciate this personalized feel from a major company. Internet comparison tools might initially show State Farm's premiums to be on the high side, but the various programs that State Farm offers to reduce premiums help them achieve competitive pricing.


Customer Satisfaction ****

State Farms rates tend to be on the high side and customers are highly encouraged to take advantage of the many discounts that State Farm offers in order to reduce the cost of premiums. State Farm is not well known for its web page, and tech savvy consumers might find it awkward or clunky. The availability of live agents to discuss your claims is a source of customer satisfaction.


Claims Satisfaction ***

State Farm earns average marks when compared to other major insurance providers about notification of an accident and beginning the claims process. They are slightly above average when it comes to servicing the claim. State Farm has a good reputation for providing settlements promptly.


Financial Security *****

State Farm has a superior financial rating, which means the company is on excellent financial standing. There is no risk that State Farm will be unable to cover the expense of a major claim. This is particularly important for consumers who have lots of assets or large savings portfolios to protect. If an insurance company has a low financial rating, they could be unable to pay for a claim which would leave the motorist liable for the money. With State Farm you can have the peace of mind that your insurance company will be able to cover the costs of any insurance claim.

Pros

  • Large company with lots of agent locations
  • Many discounts available to reduce premiums
  • Strong financial security

Cons

  • Rates can be high compared to other providers
  • Web page is sub standard compared to other providers
  • Time consuming discount programs

Progressive

Progressive is an insurance provider that has been providing quality service for over eighty years. With headquarters in Ohio, Progressive has around thirty billion dollars of revenue yearly. They offer auto plus property bundling and are capable of insuring a wide range different properties and vehicles. Progressive also dabbles in banking and can offer a variety of personal or commercial loans. Progressive is slightly smaller than State Farm but is also modeled to be a one stop finance center that offers advice within the context of an overall customer portfolio.


Customer Satisfaction **

Progressive performs at about average for a company of its size in the number of complaints received about them. However, surveys find that Progressive recently received a poor rating for customer satisfaction. This discrepancy could indicate that although Progressive does ultimately serve the customer's needs, it only does so after some prodding. They have a slightly better web page than State Farm, but not as much accessibility for face-to-face interaction.


Claims Satisfaction ***

The evaluation for JD Power concluded that Progressive was uniformly average across the board. From accident notification, to the estimation process, to eventual claim settlement, Progressive is steady if not spectacular.


Financial Security *****

Like State Farm, Progressive has earned a superior financial rating. This is a major company with substantial financial assets. No matter what kind of insurance you purchase or how high your claim limit is, you can be assured that Progressive has the solid financial footing to meet any claim.

Pros

  • Few official complaints against Progressive
  • Solid claims satisfaction
  • Strong financial footing

Cons

  • Mediocre digital access
  • High reported customer dissatisfaction
  • Best premium prices can be earned through bundling

Nationwide

Nationwide boasts over ninety years of quality service and is a major Fortune 500 company with around 50 billion dollars of revenue yearly. Nationwide offers all the standard insurance packages that any driver needs or is legally required to maintain. In addition to vehicles, Nationwide also insures property, and has dynamic financial services. Customers can take advantage of prices by bundling car and home insurance. Nationwide is another one stop insurance and finance service provider that can offer qualified advice based on your personal financial standing.


Customer Satisfaction ****

Nationwide has a better-than-average rate of customer satisfaction. They have a dynamic web portal that allows customers to pay bills and manage documents.


Claims Satisfaction ***

JD Powers rates Nationwide as average across the board for all levels of claim interaction, involvement, and eventual settlement. Their vanishing deductible allows users who are accident free to be rewarded with a lower deductible at the same premium cost over the years.


Financial Security ***

Nationwide has earned the superior financial rating which means they are a good choice for anyone to consider who is concerned about selecting an insurance provider that can cover any and all claims that may arise.

Pros

  • Good variety of insurance options
  • High level of financial planning with bundling discounts
  • Strong financial security

Cons

  • Average claims satisfaction
  • Best premiums available through programs and bundling
  • Large company with a sometimes impersonal interaction

Travelers

Headquartered in New York, Travelers has been providing quality service since its foundation in 1853. Today, Travelers Insurance receives approximately thirty billion dollars in revenue yearly. Travelers is the second largest insurer of US Commercial property. They offer the standard automobile insurance that includes all forms of legally required coverage as well as collision and comprehensive insurance. Travelers has field offices in every state and has approximately 14,000 agents.


Customer Satisfaction ***

Travelers customer satisfaction ratings are between average and below average. However, Travelers also boasts a better-than-average amount of official customer complaints. This shows that customers of Travelers might grumble about them privately, but from a legal perspective the insurance provider does its job.


Claims Satisfaction ****

JD Powers ranks Travelers above average on several categories for claims satisfaction, and no worse than average anywhere else. They receive a better-than-average rating for estimation process, rental experience, and claims servicing. This shows that Travelers overall does a good job attending to the needs of its customers.


Financial Security *****

Insurance is only as good as the ability of the provider to make good on the claim. Travelers has a superior rating and is on a strong financial footing to handle the risks of substantial coverage.

Pros

  • Long history of quality service
  • Few officially lodged customer complaints
  • Better than average claims satisfaction

Cons

  • Best premiums available through bundling
  • Offers apps for discounts that may feel intrusive
  • High rates

State Farm Auto Insurance Review: ​Conclusion

Photo of a man near a red car

image source: Pixabay

Auto insurance is more than just another monthly bill. In most states, liability insurance is a legal requirement for anyone who operates a motorized vehicle. Insurance is there to protect you from financial liability in the event of an accident for which you are at fault. When shopping for insurance, it's important to have an awareness of your overall financial portfolio. The amount of coverage you need is part of an overall, sound investment strategy. Individuals who have an accident without adequate coverage put their individual finances at risk.


Internet comparison tools will often evaluate insurance providers only by a basic premium cost. Drivers can reduce the costs of their premiums by choosing lower coverage or higher deductibles. Companies like Nationwide offer extra flexibility by offering a vanishing deductible which allows a customer to earn premium insurance at an affordable cost through prolonged safe driving. Other companies offer other discounts or incentives to help customers manage higher premiums.


It's important for customers not to make their decisions based only on the base cost of premiums. Some insurance companies with discount premiums have not earned strong financial ratings. A low premium from an insurance company with a poor financial rating could represent a short-term savings but a long-term loss. Insurance companies with poor financial ratings might not be able to cover the claim expenses of a serious accident; and that would leave the financial burden on the motorist.


Our State Farm Auto Insurance review concludes that State Farm is an industry leader with a strong financial foundation. Their prices will initially seem high on most evaluation tools, but with discounts and special pricing, State Farm premiums quickly become competitive. State Farm is well established with agents all over the nation. State Farm approaches insurance as part of an overall strategic financial plan, and they're able to give you top quality advice on the amount of insurance you need as part of a smart investment and retirement plan. State Farm Auto Insurance is a very good choice for all your insurance needs.


Final Verdict: ****

What’s the Best Auto Insurance for College Students? Top 10 Revealed

Two women sitting on vehicle

Finding the best auto insurance for college students can be difficult. Some companies will not even insure college students. Traditionally car insurance is more expensive for students of any kind. It is some of the most expensive parts of being college aged. Add this to tuition, books, supplies, living arraignments, and the other expenses of college and it is a wonder that anyone can afford it.
 
With rising costs, finding the best auto insurance for college students may become a priority particularly if the student is commuting or has an additional job. Fortunately, there are a few companies that offer affordable auto insurance for college students in a wide range of coverages. We have selected the 10 most comprehensive and affordable auto insurance companies that will insure college students.

​Auto Insurance for College Students FAQ

Navigating the world of car insurance requires you to have a working knowledge of how auto insurance works. This may be difficult if you are new to the purchase of car insurance. This FAQ should help you with the basics of car insurance coverage.

1. What Is Auto Insurance for College Students?

Auto insurance for college students is just that. It is protection against damage to your vehicle because of accidents or other acts. It is like car insurance for anyone else with additional discounts for being in college. The only difference is the age and the student status. Insurance companies consider this age group and status a great risk.

2. Why Are College Students Considered Risky?

College students are considered a risk for insurance companies because of their age and the fact that they are in college. Traditionally, insurance companies think of college students and young adults as less responsible than adults.

Although this belief is only true sometimes, there is a disproportionate amount of fatal auto accidents among ages 16 to 25 with ages 17 to 25 being college students. Younger people tailgate, drive faster, and text while driving more than other age groups.

3. Do Students Get Any Breaks on Auto Insurance?

Car fire accident

Image by vainodesositis via Pixabay

Although they are only a few, only the best auto insurance for college students have student discounts. Many companies do not bother, preferring to support students are still on their parents' insurance or severely limiting the amount of coverage available to college students at a reasonable price.

Companies that limit the coverage for college students did not make this list of the best auto insurance companies for college students.

4. Do Insurance Companies offer Different Coverages for College Students?

Yes, the best auto insurance for college students comes in different coverage options. There are hundreds of options but the two main options are basic and full coverages. Contact your local information for more information.

5. What Is Basic Auto Insurance Coverage?

Basic auto insurance coverage is the state minimum. It barely covers anything except for property damage and the driver's liability. It will pay for the person you hit, their car, or their property but it will not pay for your car or your property. Most states have a state minimum which they require all drivers to have.

It is not great coverage but it will keep you from getting a ticket and make the person you hit whole. It works differently if the accident is not your fault. If the accident is not your fault, the other person's insurance will pay to fix your car if they have basic coverage.

6. What Is Full Auto Insurance Coverage?

Full auto insurance coverage has comprehensive and collision coverage also known as comp and collision. The comprehensive portion of this coverage covers non-collision related damage to your vehicle. This includes theft, vandalism, inclement weather damage, and other types of damages. Collision covers your vehicle only if you are in a collision with another.

7. What about Uninsured Motorist Coverage?

Uninsured motorist coverage covers your car if you are in a collision with someone who does not have auto insurance. It covers you and your car so you can recover your damages despite the other driver not having insurance.

8. How Do You Determine Which Coverage You Need?

Person driving

Image by SplitShire via Pixabay

There are a few things you can use to determine which type of coverage you need. Since the more coverage you have, the more expensive it is, you want to have insurance coverage that suits your needs. These things are:

  • The value of your car, the newer the car or the higher the car value the more you will pay if you are in an accident
  • Risk of an accident, the more you drive the more likely an accident is
  • Your savings, whether you can pay out-of-pocket if you have an accident
  • The area that you drive in, you are more likely to have an accident in a city than in a rural area

9. Do I Have to Have Car Insurance?

Car insurance is a good thing to have especially if you are a frequent driver but they do not require it a few of the states in the United States. It is important to note that most of the states that do not require car insurance by law require protection, often called a bond.

Wisconsin and New Hampshire have the fewest requirements with Virginia and Mississippi following along with minimal bond requirements.

10. What Factors into the Cost of Auto Insurance?

Speed driving at night

Image by tookapic via Pixabay

Even the best auto insurance companies for college students have things they use to determine the cost of car insurance. Some of these factors are:

  • Driving record
  • Credit including credit history
  • Length of previous coverage
  • Criminal records
  • Discounts available

11. What Are Auto Insurance Discounts?

An auto insurance discount is a discount given based on a variety of factors. Some of these factors are:

  • Type of car
  • Safe driver
  • Good student
  • Multi-car
  • Low mile driving
  • Multi-policy
  • Loyalty
  • Paid in full
  • Auto draft
Person holding car key

Image by kaboompics via Pixabay

​These are not the only discounts available just a few of the most common ones. The best auto insurance for college students offer discounts for being a student or a good student. Your grade point average (GPA) factors into how much of a discount you get.

12. Do Auto Insurance Companies Have Different Payment Options?

Yes, most auto insurance companies offer at least three different payment options. The first is a full payment. If you pay your policy in full every year to six months. The second is payments three months apart. You make your first payment when the policy starts and then pay again every three months. The third is monthly. On a monthly payment plan, you pay each month.

​How We Reviewed and Found the Best Auto Insurance for College Students

Man driving vehicle

Image by JESHOOTS.com via Pexels

We reviewed the best auto insurance companies for college students based on a variety of factors. These factors include the pros and cons of the company, the price of the average policy, discounts offered, payment plans, and ease of use.

The best auto insurance for college students or anyone else offers fast and easy claims. After an accident, the last thing you want to be doing is fighting with an insurance company.

​Overall Price Range

The overall price range for the best auto insurance for college students is between $700 and $$$ with an average of around $$$.

​What We Reviewed

  • Allstate
  • GEICO Insurance
  • Erie Insurance
  • American Family Insurance
  • Liberty Mutual
  • StateFarm
  • MetLife Insurance
  • Travelers Insurance
  • Nationwide Insurance
  • Progressive
  • Amica
  • Safeco

Allstate

Allstate

Image via Allstate website

Features That Make This Insurance Company Ideal for Students

Allstate offers some major discounts to unmarried students who are less than 25 years old. These discounts are available if you have good grades. The discounts are a 35% discount for good grades and a 5% discount for going to school over 100 miles away from home.

You can also qualify for the safe driver discount, continuous insurance discount, and several others depending on your circumstances.

Click here to get a quote.

Pros

  • Multiple discounts that are not school-based
  • Special student discounts
  • Large company
  • Quick claims process
  • Agents available all over the United States

Cons

  • A bit more expensive than other companies
  • Must be 100 miles away from home in order to qualify for one student discount
  • Must have good grades

GEICO Insurance

GEICO Insurance

Image via GEICO Insurance website

Features That Make This Insurance Company Ideal for Students

GEICO Insurance is one of the top five insurance companies in the United States. They are in all 50 states but the vast majority of their business is conducted online. GIECO is known for having low pricing.

They do not offer much of a student discount because of their less than average pricing. They offer a 15% discount for good grades. They also offer the standard safe driving and feature discounts that many of the larger insurance companies do.

Click here to get a quote.

Pros

  • Easy online access and phone access to speak with a licensed agent or file a claim
  • A single student discount
  • Large company
  • Quick claims processing particularly if you do it online
  • Stellar reputation
  • Agents available across the United States

Cons

  • Student discounts are small and grade based
  • Long wait times for phone service
  • Must be able to pass a credit check

Erie Insurance

Erie Insurance

Image via Erie Insurance website

Features That Make This Insurance Company Ideal for Students

Erie Insurance is very affordable for students, especially if they are living at home. Unfortunately, Erie Insurance is only available in a limited area. They even offer prizes for continuing safe driving practices. Their standard student discount is 20%.

Click here to get a quote.

Pros

  • Prizes for safe driving for students
  • Highly competitive rates
  • Excellent claims service
  • High rating

Cons

  • Only available in Indiana, Illinois, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, West Virginia, Wisconsin and Virginia.
  • Limited agent access
  • Smaller than the average company

American Family Insurance

Features That Make This Insurance Company Ideal for Students

American Family Insurance controls 2% of the insurance market. This makes it a very large company. They provide two different insurance discounts for students. These discounts are for good grades and their TeenSmart program. The good grade discount is a 25% discount and TeenSmart offers another 10%. American Family also offers lower premiums for older cars.

Click here to get a quote.

Pros

  • Lower rates for a variety of car makes and models particularly older cars
  • Discount for good grades
  • Large company
  • Allows logs to be deleted in their safe driver program to account for other drivers

Cons

  • Not as easy to get in touch with as other companies
  • May have a long wait time on the phone
  • Not as well known as other companies
  • Credit check must have good credit

Liberty Mutual

Liberty Mutual

Image via Liberty Mutual website

Features That Make This Insurance Company Ideal for Students

​Liberty Mutual offers three student discounts. A 16% discount for students under the age of 26 with a B average. A 20% student discount is for living away from home. Then they have a safe driver discount for good driving that is 15%.

Click here to get a quote.

Pros

  • One of the largest discounts for students and teens
  • Large company
  • A Large parent company that offers multiple types of insurance
  • Student discounts available until you are 26 rather than 24

Cons

  • Online account management is
  • More expensive than other more accessible insurance companies

StateFarm

StateFarm

Image via StateFarm website

Features That Make This Insurance Company Ideal for Students

​State Farm is one of the largest insurance companies in the United States. They also provide some of the best auto insurance for college students. They offer large student discounts including 25% for good grades and 15% for the safe driver program. They are nationally known and have an excellent reputation in the insurance industry.

Click here to get a quote.

Pros

  • Excellent reputation
  • Easy online and offline access
  • Have agents as well as online services

Cons

  • One of the most expensive companies
  • Can be difficult to get a policy due to credit and other restrictions

MetLife Insurance

MetLife Insurance

Image via MetLife Insurance website

Features That Make This Insurance Company Ideal for Students

MetLife is one of the oldest insurance companies in the United States. They are also one of the few international insurance companies. They have offices in over 60 different countries. They also offer three different discounts for students. They have a safe driver discount of 7%, the student away at school discount at 10%, and the good grade discount at 15%.

Click here to get a quote.

Pros

  • Proven record providing insurance for over 150 years
  • International company
  • Large company
  • Multiple discounts available

Cons

  • More expensive than other companies on this list
  • The claims process is sometimes confusing
  • Credit score based rates. The lower the score, the higher the rate

Travelers Insurance

Travelers Insurance

Image via Travelers Insurance website

Features That Make This Insurance Company Ideal for Students

Travelers insurance offers multiple discounts for students and nonstudents alike. They have an excellent safe driver program. The discounts are not exclusive so you get all the discounts you qualify for. This includes student discounts. They also have perks such as roadside assistance and options for rental cars.

Click here to get a quote.

Pros

  • Multiple stackable discounts
  • Discounts for good grades
  • Large, well-financed company
  • Offers several financing options
  • Discounts for paying on time or having auto pay

Cons

  • Must maintain a B or above
  • Poor credit is a problem
  • Credit score based rates. The lower the score, the higher the rate

Nationwide Insurance

Nationwide Insurance

Image via Nationwide Insurance website

Features That Make This Insurance Company Ideal for Students

Nationwide Insurances makes this best auto insurance for college students list despite its higher than average pricing. Nationwide is excellent for college students because they have many types of discounts. They also have a simple claims process that is easy for a very busy student to navigate.

Click here to get a quote.

Pros

  • Many discounts available - everything from good student discounts to discounts for prepaying
  • 24/7 support
  • A large company with a proven reputation
  • Discounts for good grades just for students

Cons

  • Must be a full-time student
  • Credit check required
  • Costs more than other companies but offers a lot of different discounts

Progressive

Progressive

Image via Progressive website

Features That Make This Insurance Company Ideal for Students

Progressive is a nationally recognized company that is popular, particularly among students. Although they check your driving record, they do not base pricing on your credit record like many other companies do. Progressive also has multiple stackable discounts and an excellent loyalty program. They offer discounts for good grades and safe driving.

Click here to get a quote.

Pros

  • Name what you can pay allows you to tailor your coverage to your budget
  • Many types of discounts including a good student discount
  • Lower than average pricing
  • Excellent customer service
  • Serves the entire nation
  • Has multiple perks including covering pets and roadside assistance

Cons

  • Must maintain a B average
  • Finding all the discounts you qualify for may be difficult

Amica

Amica

Image via Amica website

Features That Make This Insurance Company Ideal for Students

Amica is a smaller insurance company. Although they do not have state restrictions, they have limited availability in some areas. They are growing though. They offer multiple safe driving discounts and an easy to use mobile app. This makes filing a claim, paying a bill, or getting an answer fast and convenient for college students.

Click here to get a quote.

Pros

  • Recognizes the correlation between good driving and good study habits
  • Quality protection at a reasonable rate
  • Reliable company
  • Excellent customer service

Cons

  • More expensive than most
  • Smaller than some other companies
  • Some of their discount amounts vary
  • Some rates and availabilities are based on credit

Safeco

Safeco

Image via Safeco website

Features That Make This Insurance Company Ideal for Students

SafeCo is a subsidiary of Liberty Mutual insurance. They offer the same student discounts that Liberty Mutual. It is a smaller more personalized insurance company when compared to its parent company Liberty Mutual.

Click here to get a quote.

Pros

  • Has the backing of Liberty Mutual
  • More personalized service
  • Access to other types of policies
  • Some of the largest student discounts when you are a good student under the age of 26

Cons

  • May not offer the broad range of services that other companies do
  • May be difficult to file a claim during off hours

​The Verdict

No single insurance company is right for everyone. Some less expensive insurance companies have other flaws. The best auto insurance for college students depends on the individual student's needs. It is important to weigh the options carefully.

You should consider what kind of coverage you need, how often you drive, and where you drive as you look at different policies. Most companies offer free online or phone insurance quotes so you can compare different companies. The best auto insurance for college students is the one that fits your budget, lifestyle, and driving style.

Featured image by Elijah O'Donnell via Pexels.

What’s The Best Car Insurance In Colorado? Top 8 Revealed

person handing car key

The Centennial State of Colorado is home to many—from vacation destinations, such as Pike's Peak and Vail, to famous residents, like the actor and comedian Tim Allen. As of 2016, there are over 4 million licensed drivers that also call the state home. Regardless of whether you call yourself a "Coloradoan" or a "Coloradan," if you are a driver in the state you will want to have the best car insurance in Colorado.

FAQs About Choosing The Best Car Insurance In Colorado

If you are a Colorado resident, you must have car insurance to legally drive your vehicle. Like many other states, Colorado has minimum coverage requirements so that all drivers on the road have some amount of protection. However, many Colorado drivers opt to add in additional types of car insurance to their policy, including comprehensive, collision, loan/lease payoff, medical and funeral services, rental car reimbursements, roadside assistance, uninsured motorist bodily injury, and uninsured motorist property damage.

In a perfect world, you would never have to use your car insurance; however, should an accident occur, you will be glad you took the time to research — and invest in — the best car insurance in Colorado for you and your family.

1. What Are The Minimum Requirements For Car Insurance In Colorado?

To legally drive a car registered in Colorado you must have an auto insurance policy that covers $25,000 for bodily injury (up to $50,000 per accident) and $15,000 for property damage. Keep in mind that, since this is the bare minimum Colorado requires you to purchase, it will not cover damage to your car.

2. What Factors Influence The Cost Of Car Insurance?

Depending on your age, ZIP code, driving record, and credit history, the car insurance rates you pay can (and likely will) differ from what another Colorado resident pays. If you cannot get coverage on the open car insurance market because of past accidents or other factors, you can apply for coverage through the Colorado Motor Vehicle Plan.

Bad Credit

It may come as a surprise, but poor credit can have a bigger impact on your car insurance rates than a DUI conviction or recent at-fault accident. Car insurance for drivers with bad credit costs significantly more than it does for those with good credit. However, the good news is that you can lower your car insurance costs by comparison shopping.

An At-fault Crash

If you are responsible for an at-fault crash, expect your car insurance rates to remain higher for three to five years after the accident. There's not much you can during those first three years, but be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Speeding Tickets

Speeding tickets are a sure way to increase your car insurance rates upon policy renewal. While you can expect to pay more for three years, it pays to compare your existing rates of other car insurance companies because you might find lower rates.

Adding a Teen

Regardless of what state you live in, adding a new driver to your family policy will hike your rate significantly. In Colorado, you can expect your rate to go up approximately 150% if you add a 16-year-old driver to your policy.

3. How Much Car Insurance Should I Buy?

You should buy more car insurance than the legal minimum, especially if you have savings and assets. The more money you have, the more likely the injured party will sue you following a car accident (should your insurance not be enough to cover all the expenses).

4. Why Is Car Insurance So Expensive In Colorado?

While car insurance underwriters don't release the exact calculations and variables that go into determining a state's rates, below are a few reasons Colorado's auto insurance rates are higher than the national average.

Bad Weather

Colorado is known for its snow, which is great for skis and snowboards but not so great for cars. Recent winter storms that have freezing rain, heavy snow, and ice conditions have forced car insurance companies to raise the price of their policies to account for costly weather-related claims.

Gas Prices

Your wallet might enjoy lower gas prices, but car insurance companies know that cheaper gas means more drivers on the road. When roads are busier, there is a higher likelihood of accidents — hence the higher costs of car insurance.

Distracted Drivers

While traffic-related deaths have been trending down across the country, Colorado has been dealing with the opposite scenario — largely in part because of distracted drivers. There is some speculation by car insurers that the legalization of marijuana in Colorado may increase distracted driving.

How We Reviewed

There is no shortage of car insurance policies and options for Colorado drivers. To help you narrow down the list and find the best car insurance in Colorado for you and your family, we picked eight different underwriters and evaluated them based policy features, coverage options, available discounts, the average monthly cost of a policy, and financial strength. We also included a link that will take you to the company's website where you can learn more.

As you read through our review the best car insurance in Colorado, you will notice an Additional Coverages section right below the Summary. All the companies we reviewed offer the required minimum car insurance liability coverage for Colorado, as well as collision, comprehensive, uninsured/underinsured motor vehicle, emergency roadside assistance, and medical payments. The car insurance policy items included in the Additional Coverages section are add-ons that are unique to that specific underwriter.

person driving car

Image via Pexels

Overall Price Range: Average Car Insurance Rates In Colorado

As we mentioned earlier in this review of the best car insurance in Colorado, the price you pay will depend on personal factors (such as ZIP code, driving record, age, and credit). However, when researching the best car insurance in Colorado, it's important to note that the state falls on the higher end in terms of cost. The average yearly premium for car insurance in Colorado is $1,383 (compared to the national average of $1,009) and the eight car insurance providers we reviewed fall into this price range.

The Top 8 Colorado Car Insurance Companies We Reviewed

State Farm Insurance

American Family Insurance

Allstate Insurance

Esurance

Safeco Insurance

Progressive

USAA Insurance

GEICO Insurance

man and woman smiling inside car

Image via Pexels

State Farm Insurance


Features:

As the largest auto insurance provider in the U.S., State Farm insures just under 20% of the Centennial State's drivers — making it the most popular option for the best car insurance in Colorado. State Farm makes it easy to check prices and understand the different parts of a car insurance policy. In addition, State Farm offers some of the best young driver discounts available, making it a great option for families with teen drivers.

Additional Coverages:

  • Car rental and travel expenses
  • Rideshare driver coverage

Discounts:

  • Accident-free
  • Drive Safe & Save™ Program
  • Driver education course completion (over the age of 55) and driver training (under age of 21)
  • Good driving
  • Good student
  • Passive restraint
  • Steer Clear® Safe Driver
  • Student away at school
  • Vehicle safety

Average Price Per Month: $

Where to Buy:

A.M. Best Financial Strength Rating: A++

State Farm is one of the highest rated companies in the insurance industry with a superior "A++" financial strength rating from A.M. Best. If you determine that State Farm has the best car insurance in Colorado for you and your family, the company will meet its financial obligations — even if the economy goes into a recession— and even after a large disaster that creates many claims at once.

American Family Insurance


Features:

American Family Insurance is a good choice for car insurance in Colorado if you are searching for a policy that has many discounts. In addition, American Family Insurance just purchased Ameriprise's Auto and Home insurance business — which includes Costco car insurance. If you are a member of Costco, be sure to maximize the yearly membership fee and see if your relationship with the wholesaler can get a lower price on Colorado car insurance.

Additional Coverages:

  • Gap (Lease & Loan)
  • Classic car
  • Business car
  • Rideshare
  • Rental Car

Discounts:

  • Multi-vehicle
  • Loyalty
  • Early-bird
  • Multi-product
  • Steer into savings
  • Auto safety equipment
  • Defensive driver
  • Good driving
  • Low mileage
  • KnowYourDrive Program
  • Good student
  • Teen safe driver
  • Away at school
  • Young volunteer
  • Generational
  • Autopay
  • Customer full pay
  • Paperless

Average Price Per Month: $

Where to Buy:

A.M. Best Financial Strength Rating: A

American Family Insurance has an "A" rating from A.M. Best, meaning that the company has an excellent ability to meet their ongoing insurance obligations.

person locking seat belt

Image via Pexels

Allstate Insurance


Features:

Allstate Insurance prides itself on providing great protection with leading-edge tools, expert support from agents, and benefits drivers won't find anywhere else — such as their claim satisfaction guarantee, Drivewise®, Allstate Rewards®, preferred repair services, car buying service, access to their mobile app and QuickTrip. While Allstate is one of the more expensive options for car insurance, it's important to remember that premiums are highly personal and depending on your "risk factors" it might be the best insurance in Colorado for you.

Additional Coverages:

  • Rental reimbursement
  • Sound system insurance
  • Personal injury protection
  • Personal umbrella policy
  • Property protection
  • Class car insurance
  • Ride-sharing coverage
  • Mexico tourist auto insurance

Discounts:

  • Multiple policy
  • Smart student
  • Vehicle discounts (anti-lock breaks, anti-theft, and new car)
  • EZ pay plan
  • Allstate eSmart®
  • FullPay®
  • Early Signing Discount®
  • Responsible payer

Average Price Per Month: $$$

Where to Buy:

A.M. Best Financial Strength Rating: A+

Allstate financial strength ratings are strong and stable across their divisions, which is why A.M. Best rated the company as an A+.

Esurance


Features:

In 2011, Esurance was acquired by Allstate for a cool $1 billion — and the Colorado-based car insurance company has continued to grow ever since. Besides providing the minimum bodily injuries (per person and per accident) and property damage liability insurance that all Colorado drivers must carry, Esurance also offers additional coverages (below) that can provide peace of mind and financial protection should you need to file a claim. Esurance's CoverageMyWay® program is a great way to determine if their policies will provide you and your family with the best car insurance in Colorado.

Additional Coverages:

  • CarMatch Rental Coverage®
  • Custom parts and equipment
  • Auto loan/lease (or "gap")
  • Funeral services payments
  • Towing and labor

Discounts:

  • Anti-theft device
  • Claim-free
  • Defensive driver
  • Fast 5®
  • Good student
  • Homeowners
  • Multi-car
  • Paid-in-full
  • Safety device
  • Multi-policy

Average Price Per Month: $$$

Where to Buy:

A.M. Best Financial Strength Rating: A+

Esurance was recently upgraded to an "A+" rating (from "A-") because it joined the Allstate family.

insurance on papers

Image via Pixabay

Safeco Insurance


Features:

Backed by the financial strength of Liberty Mutual, Safeco Insurance combines a network of independent insurance agents (who will work with you to make sure you get the best coverage for your needs) with the ease and convenience of managing your account online. All Safeco car insurance policies include up to $10,000 in coverage for reimbursement of first aid administered to others after an accident, accident forgiveness, and diminishing deductibles if you remain claim-free.

Additional Coverages:

  • Loan and lease
  • Electronic key and lock replacement
  • CD and DVD replacement
  • New Car Replacement™
  • Audio-visual and custom equipment
  • Pet coverage
  • Personal property

Discounts:

  • Multiple Safeco policies
  • Safe driver
  • Accident prevention course
  • Teen Safety Rewards™
  • Drive less, pay less
  • More than one car
  • Theft deterrents
  • Anti-lock breaks
  • Own your own home
  • Increase your deductible
  • Pay your bill in full

Average Price Per Month: $$

Where to Buy:

A.M. Best Financial Strength Rating: A

Safeco has an excellent "A" rating by A.M. Best for its financial strength. Keep in mind that Safeco is backed by the financial strength of Liberty Mutual Insurance, a Fortune 100 company and one of the largest U.S. corporations.

Progressive


Features:

As the third-largest car insurance company in the United States, Progressive offers insurance for almost anything that has a motor, from commercial car and boat insurance to all-terrain vehicles (ATVs) and snowmobiles. In addition, Progressive also offers other types of insurance through their third-party network of insurance agents, including homeowners, renters, mobile home, condo, flood, business, life, classic car, mechanical repair, travel, wedding and event, pet, ID theft, and insurance for driving in Mexico.

Additional Coverages:

  • Loan/lease payoff
  • Rental car reimbursement
  • Custom parts and equipment value
  • Rideshare coverage
  • Deductible savings bank

Discounts:

  • Multi-car and multi-policy
  • Snapshot® personalized rates
  • Safe driver
  • Homeowner
  • Sign online
  • Online quote
  • Paperless
  • Continuous insurance
  • Teen driver
  • Good student
  • Pay in full
  • Automatic payment setup

Average Price Per Month: $$

Where to Buy:

A.M. Best Financial Strength Rating: A+

Progressive has an "A+" rating from A.M. Best Financial because of its superior ability to meet ongoing insurance obligations.

crash test on car

Image via Pixabay