Why Is Car Insurance So Expensive in Colorado? (2026)
The average annual cost of car insurance in Colorado is $1,882, which is 16% higher than the national average of $1,713.
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Writer: Rebecca HendersonAutomotive and Consumer Content Writer
Writer: Rebecca HendersonAutomotive and Consumer Content Writer
Rebecca Henderson is a freelance automotive and consumer content writer with more than a decade of experience creating research-driven, SEO-focused content. She specializes in automotive and home services, with additional experience writing about personal finance and pet care. Her work has been featured in USA Today, MarketWatch, This Old House, and Today’s Homeowner. She enjoys taking complicated topics — from car warranties and home repairs to insurance and everyday purchases — and breaking them down into clear, practical information that helps readers make confident decisions. When she’s not writing, Rebecca can usually be found baking something sweet, getting lost in a good book, or exploring new places.
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Editor: MacKenzie KorrisLicensed P&C Agent, Senior Insurance Copy Editor
Editor: MacKenzie KorrisLicensed P&C Agent, Senior Insurance Copy Editor
Qualifications:
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.
)
Reviewer: John LeachLicensed P&C Agent, Chief Copy Editor
Reviewer: John LeachLicensed P&C Agent, Chief Copy Editor
Qualifications:
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
Updated
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Quick Facts
Car insurance rates in Colorado have increased nearly 42% within the past five years, according to Insurify data.
The state’s high risk of hail and wildfires, combined with a high rate of uninsured drivers, affects Colorado car insurance rates.
Colorado’s car insurance rates are on track to decrease by about 3% by the end of 2026, according to an Insurify report.
4 reasons why car insurance is so expensive in Colorado
Colorado’s average insurance costs fell slightly in the first half of 2026. Even so, rates exceed the national average by a wide margin.
Vehicle theft rates have declined in recent years, according to the Colorado Auto Theft Prevention Authority.[1] Still, beyond your driving record, other factors contribute to the state’s high insurance costs.
Exposure to severe weather and natural disasters
Colorado is at risk of severe weather and various natural disasters, including wildfires, hail, tornadoes, and flooding.
Wildfire is a significant concern in Colorado.[2] In December 2021, the state’s costliest wildfire swept through a densely populated area near Boulder and consumed nearly 1,100 homes.[3]
Colorado is also one of the most hail-prone states in the nation, which drives up insurance costs. In May 2017, Colorado experienced a massive hailstorm that resulted in an estimated 167,000 car insurance claims.[4]
High percentage of uninsured drivers
While Colorado insurance laws require drivers to carry liability insurance, uninsured motorist coverage is optional.[5]
In 2023, the state ranked No. 9 nationwide for the highest number of uninsured drivers, according to the Insurance Research Council. Nearly 1 in 5 (19.7%) Colorado drivers are uninsured.
Population density and longer commute times
Rising statewide population and longer commute times increase the risk of auto accidents. More than 6 million people lived in Colorado in 2025, a 4.1% increase from 2020, according to the U.S. Census Bureau.
Colorado’s average commute time of 25.2 minutes is shorter than the national average but longer than in any bordering state. New Mexico’s average commute time is closest, at 23.5 minutes.
Impaired driving and fatal crashes
Driving under the influence (DUI) increases the risk of serious car accidents, including fatal crashes. In 2025, 34% of traffic deaths in Colorado involved an impaired driver, according to the Colorado Department of Transportation (CDOT).[6]
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How Colorado car insurance rates have changed
Colorado’s average full-coverage policy premium first surpassed $2,000 per year in March 2023, according to Insurify data. Between January 2021 and March 2026, the state’s full-coverage rates reached their lowest point in April 2021, at $1,836 per year.
Since May 2025, when rates peaked at $2,881 annually — a 57% increase from roughly four years prior — the average car insurance cost in Colorado has consistently trended downward.
The following graph illustrates changes in average car insurance costs in Colorado compared to the national average.
Average Annual Cost of Full-Coverage Car Insurance
State | 2024-10 | 2024-11 | 2024-12 | 2025-01 | 2025-02 | 2025-03 | 2025-04 | 2025-05 | 2025-06 | 2025-07 | 2025-08 | 2025-09 | 2025-10 | 2025-11 | 2025-12 | 2026-01 | 2026-02 | 2026-03 | 2026-04 | 2026-05 | 2026-06 | 2026-07 | 2026-08 | 2026-09 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Colorado | 2,783 | 2,838 | 2,852 | 2,864 | 2,860 | 2,889 | 2,883 | 2,889 | 2,870 | 2,835 | 2,777 | 2,743 | 2,692 | 2,662 | 2,641 | 2,635 | 2,635 | 2,630 | 2,621 | 2,611 | 2,602 | 2,612 | 2,611 | 2,604 |
| United States | 2,375 | 2,371 | 2,363 | 2,352 | 2,368 | 2,369 | 2,368 | 2,357 | 2,343 | 2,318 | 2,286 | 2,258 | 2,229 | 2,216 | 2,223 | 2,223 | 2,225 | 2,233 | 2,238 | 2,237 | 2,238 | 2,239 | 2,241 | 2,242 |
Colorado cities with the most expensive car insurance
Where you live and drive in Colorado affects your risk of filing an auto insurance claim — and how much you pay for insurance. If you live in an area more prone to auto theft or hail, like Denver, you could pay more for comprehensive coverage.
Insurance costs may also be higher in densely populated cities or areas with higher rates of vehicle theft or uninsured drivers.
For example, the Denver-Aurora-Centennial metro has one of the nation’s highest vehicle-theft rates by volume, according to Insurify data. Aurora also has some of the highest car insurance rates in Colorado, averaging $123 per month for liability insurance and $242 for full coverage.
In the smaller city of Grand Junction, about 250 miles west of Denver, rates are among the lowest in the state. Drivers here pay an average of $71 per month for liability-only coverage and $141 for full coverage.
The following cities have the highest average monthly car insurance costs in Colorado:
The below rates in Colorado are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT.
City | Average Monthly Quote |
|---|---|
| Colorado Springs | $161 |
| Commerce City | $162 |
| Denver | $169 |
| Englewood | $171 |
| Aurora | $183 |
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.
Insurance costs in each city depend on multiple factors. For example:
Aurora: A major Denver suburb, Aurora has some of the state’s highest rates of vehicle fatalities and auto theft, according to state data.
Englewood: This smaller suburb lies within Arapahoe County, which has high rates of accidents and fatal crashes, according to the Colorado Department of Transportation. Englewood also sees seasonal hail.
Denver: Colorado’s highest auto theft and fatal crash rates occur in the densely populated state capital.
Commerce City: This growing northern suburb is in Adams County, which has a high accident rate.
Colorado Springs: This southern Colorado city has one of the state’s highest auto theft rates, according to the Colorado Auto Theft Prevention Authority. It’s also in El Paso County, which had the highest rate of excessive speeding citations in 2025, according to the Colorado State Patrol.
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How to lower your car insurance rate in Colorado
Use the following strategies to lower your car insurance rates in Colorado:
Bundle policies. Whether you live on the Front Range or just outside of Denver, bundle your auto insurance with your homeowners or renters insurance to save.
Adjust your deductibles. Higher deductibles help lower your monthly premium. Make sure you can comfortably afford a higher deductible if you need to file a claim, such as for hail damage.
Compare car insurance rates. Whether you live in Fort Collins, Lakewood, or Greeley, rates vary among insurers. Compare rates with several insurers every six months to ensure you’re getting the best price.
Maximize discounts. Ask about discounts you qualify for. These might include savings for taking a defensive driving course, maintaining a clean driving history (no DUIs or speeding tickets), or belonging to an organization such as the University of Denver Alumni Benefits program.
Why car insurance is so expensive in Colorado FAQs
As you explore why car insurance costs so much in Colorado, discover which insurer offers the best insurance rates in the state. Also, learn which state has the highest rates and how your credit factors into your premium.
Why are car insurance rates so high in Colorado?
Hailstorm and wildfire risk, long average commute times, and a high percentage of uninsured drivers contribute to Colorado’s expensive premiums.
What company has the cheapest car insurance rates in Colorado?
State Farm has the cheapest car insurance rates in Colorado. Drivers pay an average of $55 per month for liability-only coverage with the company.
What state has the worst car insurance rates?
Maryland has the highest car insurance rates in the nation. The average monthly cost of car insurance in Maryland is $247. By comparison, Colorado drivers pay an average of $157 per month for car insurance, while the nationwide average is $143.
Does Colorado use credit scores to set car insurance rates?
In Colorado, insurers may use your credit history to determine your car insurance rate. Additional factors that affect car insurance rates include your age, annual mileage, vehicle type, ZIP code, and whether insurers consider you a high-risk driver.
Sources
- Colorado Auto Theft Prevention Authority. "2020 to 2025 Colorado Reported Stolen Vehicles."
- USDA. "Wildfire Risk to Communities."
- NOAA Research. "Looking back at Colorado's Marshall Fire."
- National Crime Insurance Bureau. "Insurance News: Colorado's Most Costly Catastrophe One Year Later."
- Colorado Department of Regulatory Agencies. "Auto Insurance."
- Colorado Department of Transportation. "Early CDOT data says 234 traffic deaths involved an impaired driver last year."
Methodology
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
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Writer: Rebecca HendersonAutomotive and Consumer Content Writer
Writer: Rebecca HendersonAutomotive and Consumer Content Writer
Rebecca Henderson is a freelance automotive and consumer content writer with more than a decade of experience creating research-driven, SEO-focused content. She specializes in automotive and home services, with additional experience writing about personal finance and pet care. Her work has been featured in USA Today, MarketWatch, This Old House, and Today’s Homeowner. She enjoys taking complicated topics — from car warranties and home repairs to insurance and everyday purchases — and breaking them down into clear, practical information that helps readers make confident decisions. When she’s not writing, Rebecca can usually be found baking something sweet, getting lost in a good book, or exploring new places.
Editor: MacKenzie KorrisLicensed P&C Agent, Senior Insurance Copy Editor
Editor: MacKenzie KorrisLicensed P&C Agent, Senior Insurance Copy Editor
Qualifications:
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.
Reviewer: John LeachLicensed P&C Agent, Chief Copy Editor
Reviewer: John LeachLicensed P&C Agent, Chief Copy Editor
Qualifications:
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.