When insurance companies are allowed to consider credit histories, drivers with a bad credit score in Colorado tend to face higher insurance premiums than those with good credit scores. It comes down to risk for the insurer, and most insurers consider drivers with higher credit scores are less of a financial risk.
“Bad credit can significantly impact your car insurance costs. Most insurance companies use a credit-based insurance score to help predict risks, in which statistically, drivers with lower credit scores are more likely to file claims,” says Ted Kaplun, principal attorney and founding partner of KaplunMarx, a personal injury law firm in Pennsylvania. “This means insurers often charge higher premiums to those with poor credit, despite a clean driving record.”
This guide explores the cheapest car insurance rates for drivers with bad credit in Colorado.
- The average annual car insurance rate for full coverage for drivers with bad credit in Colorado is $4,842.
- The cheapest insurance company in Colorado for drivers with poor credit is Geico.
- Shopping around can help drivers with any credit score find more affordable rates for their situation.
Shopping around can help drivers with any credit score find more affordable rates for their situation.
What are the average car insurance rates for people with bad credit in Colorado?
Bad credit can significantly raise car insurance costs in Colorado. On average, full coverage for a driver with bad credit costs $404 per month. For liability-only coverage at 50/100/50 limits, rates average $124 monthly, and the state’s minimum liability coverage costs about $76 per month.
See the table below for a comparison of how average car insurance rates in Colorado change based on credit score.
| Company | Average rates | Rates after bad credit | $ increase | % increase |
|---|---|---|---|---|
| Geico | $1,445 | $2,181 | $735 | 51% |
| Kemper | $1,878 | $3,003 | $1,125 | 60% |
| Allstate | $2,774 | $4,753 | $1,978 | 71% |
| Progressive | $2,796 | $4,964 | $2,167 | 78% |
| Farmers | $3,578 | $7,113 | $3,534 | 99% |
| State Farm | $1,950 | $7,393 | $5,444 | 279% |
| Auto-Owners | $2,874 | $9,112 | $6,238 | 217% |
| USAA* | $1,559 | $3,291 | $1,732 | 111% |
Find out how bad credit can impact your car insurance rates
Top car insurance companies in Colorado for drivers with bad credit
Car insurance companies in Colorado use different methods to calculate risk, which means rates vary widely, especially for drivers with bad credit. Some insurers offer more competitive pricing than others.
The most affordable car insurance companies in Colorado for drivers with bad credit include Geico, Kemper, and Allstate.
Use the table below to compare average rates by company for drivers with poor credit in Colorado.
| Company | Annual rates after bad credit | Six-month rates after bad credit | Monthly rates after bad credit |
|---|---|---|---|
| Geico | $2,181 | $1,090 | $182 |
| Kemper | $3,003 | $1,502 | $250 |
| Allstate | $4,753 | $2,376 | $396 |
| Progressive | $4,964 | $2,482 | $414 |
| Farmers | $7,113 | $3,556 | $593 |
| State Farm | $7,393 | $3,697 | $616 |
| Auto-Owners | $9,112 | $4,556 | $759 |
| USAA* | $3,291 | $1,646 | $274 |
Check out our detailed guide on the cheapest car insurance companies
How age and gender affect car insurance rates for folks with bad credit in Colorado
Car insurance companies consider age and gender when setting premiums, particularly for drivers with bad credit. Younger drivers usually face higher costs because they’re less experienced behind the wheel. Women, on average, pay less than men for car insurance, as they tend to have lower accident rates.
Below, you’ll find a breakdown of average car insurance rates by age and gender for bad credit drivers in Colorado.
| Age | Six-month cost for male drivers | Six-month cost for female drivers | Monthly cost for male drivers | Monthly cost for female drivers |
|---|---|---|---|---|
| 18 | $5,321 | $4,876 | $887 | $813 |
| 25 | $3,014 | $2,913 | $502 | $486 |
| 40 | $2,442 | $2,401 | $407 | $400 |
| 65 | $2,277 | $2,271 | $379 | $379 |
How driving record and location influence rates with bad credit in Colorado
Driving record and location also influence car insurance rates. Drivers with a history of violations pay more for car insurance. Incidents like speeding tickets and at-fault accidents represent a risk to the insurance company, which tends to push rates higher.
Your location, state and ZIP code also impact rates. For example, drivers in rural areas with low crime rates and limited traffic tend to enjoy lower rates than those living in a large city with more congestion.
Bad credit drivers will feel the influence of their driving record and location on their car insurance rates. In fact, these other factors might have more of an influence than a driver’s credit history.
Check out 10 most important factors that affect car insurance rates
What are the discounts for drivers with bad credit in Colorado?
While drivers with bad credit might experience higher rates, seeking out discounts can help to offset their costs. Some of the discounts drivers with bad credit can pursue include:
Safe driving discounts: Many car insurance companies offer discounts to safe drivers. If you are comfortable signing up for a telematics program that tracks your driving behavior, you could score significant savings if you practice safe driving habits.
Bundling discounts: If you need other types of coverage, like renters insurance or homeowners insurance, buying multiple policies through the same insurer can often lead to a discount.
Affinity discounts: Being part of a group, like an alumni association or a veteran organization, can sometimes result in a discount.
Pay-in-full discount: Some insurers offer a discount when you pay for coverage upfront instead of monthly.
Paperless discount: Many insurers offer a discount if you opt to go paperless.
See what drivers with bad credit pay on average in nearby states
Tips to find cheap car insurance with bad credit in Colorado
As you look for cheap car insurance with bad credit in Colorado, use these strategies to seek out lower rates:
Shop around: Comparing rates across multiple insurance companies can help you find the most affordable rate for your unique situation.
Raise your deductible: Generally, opting for a higher deductible leads to a lower insurance premium. If you have the money on hand to cover a higher deductible during an emergency, locking in the premium savings can make sense.
Maintain safe driving habits: Safe drivers tend to pay less for coverage. Sticking to safe driving habits can lead to savings.
How to shop for car insurance with bad credit in Colorado
When shopping for car insurance with bad credit in Colorado, use the following steps as a guide:
Gather your information: To get accurate quotes, you’ll need to provide some basic information about your vehicle. For example, you’ll likely need to provide the VIN, make, model, and year.
Consider your policy needs: While a state minimum coverage policy often offers the cheapest rates, it might not fit your unique situation. For example, you might need comprehensive coverage while paying off an auto loan.
Compare quotes: Collect quotes from multiple car insurance companies to find the most affordable option.
Frequently ask questions
Does a bad credit score affect car insurance rates in Colorado?
Yes, drivers with bad credit in Colorado tend to pay more for car insurance than drivers with good credit.
Can you improve your rates with bad credit in Colorado over time?
Improving your credit over time can help lower your car insurance rates in Colorado . Paying bills on time and reducing debt are effective ways to boost your score.
Car insurance rates for good vs. bad credit in Colorado
The cost of full coverage car insurance in Colorado is higher for drivers with bad credit, averaging $4,842 per year, compared to $2,337 annually for drivers with good credit.
Car insurance requirements in Colorado if you have bad credit
In Colorado, having bad credit doesn’t affect the type of car insurance you need. You must still carry the state’s minimum legal coverage to drive.
Find out whether it’s legal for insurers to raise your premium because of a bad credit score
Resources and Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for drivers with poor credit scores. The rates are based on sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
Note: USAA is only available to military community members and their families.
Still have a question? Ask our experts
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs