Car insurance is known to be an expensive necessity. There are many factors that may influence your car insurance rates, and one of these is your location.
On average, car insurance in Colorado costs about $1,570 a year, or approximately $130.83 a month. This is higher than the U.S. average at $1,427 a year (about $118.91 a month). There are many reasons the cost of insurance varies state by state. Sometimes rates can even vary depending on zip code.
Cost of Living
Different areas have a different cost of living. This is true for states, cities and zip codes. If you live in an area with a high cost of living, you will likely pay higher car insurance rates than those who live in areas with a lower cost of living. This is in part due to the costly damage a driver can cause in these areas. Areas with a high cost of living are more likely to host expensive cars and property that, if damaged, can cost a hefty amount to repair or replace. Insurance agencies compensate for this monetary risk by charging more for insurance.
Coverage Required
States are allowed to set their own laws in regards to minimum car insurance requirements. Some states require more insurance, which means drivers will pay more in premiums to maintain coverage. For example, Connecticut drivers pay an average of $1,683 a year for car insurance, which is almost $100 than Colorado’s average. Take a look at the difference in minimum car insurance requirements between Connecticut and Colorado.
Colorado Requirements
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
Connecticut Requirements
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
- $25,000 in uninsured/underinsured motorist coverage per person
- $50,000 in uninsured/underinsured motorist coverage per accident
Population
Living in a state with a large population can have its downsides. With more people on the road, accidents are more likely, and insurance agencies compensate for that risk in their prices. In Colorado, there are approximately 6 million people, and the state is rapidly growing. As the population rises, so may your car insurance rates.
Other Factors
There are, of course, other factors that may influence the cost of your car insurance in Colorado. This includes your:
- Age
- Gender
- Credit score
- Driving record
- Vehicle