Cheap Car Insurance for Low-Income Drivers in Colorado

What is low-income car insurance in Colorado?

Colorado doesn’t offer a special low-income car insurance program. But drivers with limited incomes can find affordable coverage by qualifying for car insurance discounts, comparing quotes, and adjusting their coverage level.

Liability-only car insurance is typically the cheaper option compared to full coverage. It pays for injuries and property damage you cause to others in an accident. Full-coverage car insurance generally adds collision and comprehensive coverage to protect your own vehicle after an accident.

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Cheapest car insurance in Colorado

The cheapest car insurance company in Colorado is State Farm, with an average monthly rate of $55 for liability-only car insurance. That’s less than the state average of $97 per month.

Liability-only car insurance in Colorado costs about the same as the national average of $99 per month, according to Insurify data. Colorado’s frequent hailstorms and wildfires, along with the state’s high vehicle theft rate, can put upward pressure on car insurance rates.^{[1] [2]}

Car insurance rates can also vary between urban and rural areas in Colorado. Drivers in urban areas like Denver tend to have higher rates due to heavier traffic and an extremely high rate of theft. Meanwhile, drivers in smaller cities like Grand Junction pay less due to having fewer people and less traffic, according to U.S. Census Bureau data.

The table below shows the cheapest car insurance rates in Colorado.

The below rates in Colorado are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT. 

Insurance Company	Average Quote: Liability Only
State Farm	$55
Sun Coast	$61
Progressive	$65
The General	$65
Root	$70
USAA	$70
Mile Auto	$73
American Family	$76
GEICO	$76
Bristol West	$84
Auto-Owners	$98
Trexis	$100
Mendota	$102
Safeco	$106
National General	$109
Dairyland	$111
Allstate	$116
Direct Auto	$116
Insurify Car	$124
Travelers	$138
Farmers	$144
Liberty Mutual	$168

Disclaimer: Table data sourced from real-time Colorado car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Colorado may vary based on the policy buyer's unique driver profile.

Cheapest car insurance for drivers with poor credit in Colorado

If you have bad credit in Colorado, your car insurance could be more expensive. Unlike some other states, Colorado allows insurers to use your credit history when setting rates. Drivers with good credit often pay lower rates, while drivers with poor credit tend to pay more.

Colorado insurers can’t cancel or refuse to renew your coverage solely because of poor credit. Insurers also can’t consider medical debt in collections when calculating your credit-based insurance score.

The table below shows liability-only car insurance quotes for Colorado drivers with poor credit and good credit.

The below rates in Colorado are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT. 

Insurance Company	Average Monthly Liability Quote: Poor Credit	Average Monthly Liability Quote: Good Credit
Sun Coast	$76	$59
State Farm	$80	$54
The General	$80	$63
Progressive	$81	$63
Root	$87	$67
USAA	$87	$68
GEICO	$89	$75
Mile Auto	$90	$70
American Family	$92	$74
Bristol West	$104	$82
Trexis	$125	$97
Mendota	$128	$99
Safeco	$131	$102
National General	$135	$105
Dairyland	$137	$107
Direct Auto	$144	$112
Allstate	$145	$113
Auto-Owners	$148	$95
Insurify Car	$155	$121
Travelers	$164	$133
Farmers	$169	$141
Liberty Mutual	$201	$164

Disclaimer: Table data sourced from real-time Colorado car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Colorado may vary based on the policy buyer's unique driver profile.

Car insurance options for low-income drivers in Colorado

Colorado doesn’t have special low-income car insurance programs like some other states, but it does have an assigned risk plan called the Colorado Automobile Insurance Plan.^[3] Administered through the Western Association of Automobile Insurance Plans (WAAIP), the plan helps high-risk drivers who can’t find coverage in the standard insurance market. 

Eligible drivers can work with an agent or broker to apply to the plan, which assigns the case to an insurance company that can write the policy. This option may help drivers with a coverage lapse, a driving under the influence (DUI) conviction, or other violations get the coverage they need to stay legal on the road.

Non-standard insurance companies are another option for high-risk drivers. For example, Dairyland serves drivers with coverage gaps or driving violations. The General is another company that offers coverage to Colorado drivers with accidents, violations, or poor credit.

Standard insurers like GEICO, State Farm, and Progressive may offer affordable rates to Colorado drivers with a speeding ticket, an at-fault accident, or another violation on their record. Comparing liability-only quotes from multiple companies can help low-income drivers find the cheapest available option.

Minimum car insurance requirements in Colorado

Drivers in Colorado must meet minimum auto insurance requirements to drive legally. The state minimum liability insurance coverage requirements include:^[4]

• Bodily injury liability coverage: $25,000 per person and $50,000 per accident. This helps pay for injuries if you cause an accident that results in the injury or death of another person.

• Property damage liability coverage: $15,000 per accident. This helps pay to repair or replace someone else’s property when you cause a crash.

Coverage	Minimum Requirement	What It Covers
Bodily injury liability	$25,000 per person/$50,000 per accident	Death or injury caused to another person
Property damage liability	$15,000 per accident	Damage to another person’s property

Comprehensive and collision coverage are optional coverages under Colorado law. Comprehensive insurance helps cover events such as theft, hail, or vandalism. Collision insurance covers damage to your car from an accident. Choosing minimum coverage can lower your insurance costs, but it could leave you unprotected if something happens to your vehicle.

For example, Colorado’s severe hailstorms can damage your car’s roof and hood. Without comprehensive coverage, you’d generally have to pay for the repairs out of pocket.

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What affects car insurance rates in Colorado?

Several risk factors affect car insurance prices in Colorado:

• Severe weather: Severe storms are a major risk in Colorado, bringing hail and high winds. The eastern part of the state is prone to hail, and the state faces potential wind damage from tornadoes through the spring and early summer. These risks can push car insurance rates up because insurers may face more expensive vehicle damage claims.

• Vehicle theft: Colorado drivers also face a high risk of auto theft. In 2025, the state ranked No. 6 nationally for auto thefts per capita and No. 14 for total thefts, with 16,291 reported, according to data from the Rocky Mountain Insurance Information Association. Colorado’s per-capita ranking improved from No. 1 in 2021. The most-stolen vehicle make and model in Colorado in 2025 was the Chevy Silverado.

• Uninsured drivers: Colorado ranks No. 9 nationally in uninsured motorist rates, according to the Insurance Research Council. Higher rates of uninsured drivers can lead to higher car insurance for everyone because drivers and insurers face additional expenses after accidents involving uninsured motorists.

Low-income car insurance in Colorado FAQs