Five Tricks to Save on Car Insurance in Colorado

Smart consumers have a good feel for the rating factors that help determine car insurance rates. Knowing what determines base rates enables informed choices that could result in much lower annual insurance costs.

The following are a partial list of the pieces car insurance companies consider when setting premiums.

• Occupation reflects on rates – Did you know your car insurance rates can be affected by your occupation? Occupations such as judges, executives and financial analysts tend to have higher average rates in part from job stress and long work days. Conversely, occupations such as actors, engineers and performers receive lower rates.
• Your spouse saves you money – Having a wife or husband can get you a discount on your car insurance policy. Having a spouse means you’re more mature and responsible it has been statistically shown that being married results in fewer claims.
• Mature drivers pay less – Teenage drivers in Colorado are known to get distracted easily when behind the wheel so they pay higher car insurance rates. Older insureds are more responsible, statistically cause fewer accidents and get fewer tickets.
• More performance means more cost – The performance level of the vehicle you are insuring makes a significant difference in how high your rates are. The cheapest insurance rates are for low performance passenger models, but the final cost of insurance is determined by many other factors.

Scraping up a payment for steep insurance is about as hard as going to the dentist and you undoubtedly pay it and don’t know why costs are so high. Some car insurance companies in Colorado will make you pay high prices, so if you don’t compare rates, you’re wasting money every month.

There are several ways to compare car insurance prices but there is one way that is less time-consuming than others. You can spend countless hours discussing policy coverages with agents in your area, or you can stay home and use online quotes to get the quickest rates.

All the larger companies enroll in a system where insurance shoppers enter their policy data once, and each company then returns a price quote determined by their information. This system prevents you from having to do multiple quote forms to each individual car insurance company.

To participate in this free quote system, click here to start a free quote.

The only drawback to pricing coverage this way is you are unable to specify the companies to receive prices from. If you wish to select from a list of companies to compare we have a listing of the cheapest car insurance companies in Colorado. View list of Colorado insurance companies.

Which method you use is up to you, but make absolute certain that you use identical coverage information for each comparison quote. If you are comparing higher or lower deductibles it’s not possible to determine the best price.

Companies offer discounts so take them!

Companies that sell car insurance do not list all available discounts very clearly, so we researched some of the best known and the harder-to-find ways to save on car insurance. If you’re not getting every credit possible, you are throwing money away.

• Discount for Good Grades – Performing well in school can earn a discount of 20% or more. Earning this discount can benefit you well after school through age 25.
• No Charge for an Accident – Certain companies will allow you to have one accident before your rates go up so long as you haven’t had any claims for a set time period.
• Service Members Pay Less – Having a family member in the military may qualify for rate reductions.
• Payment Method – If paying your policy premium upfront instead of monthly or quarterly installments you may reduce your total bill.
• Auto/Home Discount – If you have multiple policies with one insurance company you may save at least 10% off all policies.

As a disclaimer on discounts, most of the big mark downs will not be given to the overall cost of the policy. The majority will only reduce the price of certain insurance coverages like liability, collision or medical payments. So when it seems like it’s possible to get free car insurance, car insurance companies aren’t that generous.

Buying car insurance locally

Certain consumers prefer to get advice from a local agent and that is just fine! Educated insurance agents can help determine the best coverages and help you file claims. The biggest benefit of price shopping on the web is that you can obtain lower rates and still have an agent to talk to.

After filling out this short form, the coverage information is transmitted to insurance agents who will give you bids for your coverage. There is no reason to even leave your home since price quotes are sent immediately to your email address. It doesn’t get any easier!

For a directory of insurance agents in Colorado, click here.

Do drivers who switch really save $454 a year?

Colorado drivers get pounded daily by advertisements that promise big savings by State Farm, GEICO and Progressive. All the companies make the same claim of big savings after switching to their company.

How does each company say the same thing? This is how they do it.

Insurance companies are able to cherry pick for the driver that earns them a profit. For instance, a profitable customer might be profiled as between 30 and 50, insures multiple vehicles, and has a high credit rating. A customer getting a price quote who matches those parameters gets the lowest rates and as a result will probably save when switching.

Drivers who don’t qualify for these standards must pay a higher premium which leads to business not being written. Company advertisements say “drivers who switch” not “everybody who quotes” save that much. That’s the way insurance companies can confidently advertise the savings. This illustrates why you absolutely need to get quotes from several different companies. You cannot predict which insurance companies will provide you with the cheapest rates.

Do I just need basic coverages?

When it comes to buying the right insurance coverage, there isn’t really a “best” method to buy coverage. Coverage needs to be tailored to your specific needs.

Here are some questions about coverages that can help discover whether or not your insurance needs would benefit from professional advice.

• Does my policy pay for OEM or aftermarket parts?
• What are the financial responsibility laws in Colorado?
• When do I need to add a new car to my policy?
• Will I be non-renewed for getting a DUI or other conviction?
• When does my teenage driver need to be added to my policy?
• Who is covered by my policy?
• Do I need to file an SR-22 for a DUI in Colorado?

If you don’t know the answers to these questions but you think they might apply to your situation, you may need to chat to a licensed insurance agent. If you want to speak to an agent in your area, simply complete this short form. It is quick, free and may give you better protection.

More tips and info about car insurance is located at the Colorado DORA Division of Insurance website. Colorado drivers can file complaints about a company, learn about insurance regulations, and find disaster information.

Smart shoppers get results

Insureds change insurance companies for any number of reasons including unfair underwriting practices, questionable increases in premium, lack of trust in their agent and even policy nonrenewal. No matter why you want to switch, choosing a new insurance company is less work than it seems.

When trying to cut insurance costs, make sure you don’t skimp on critical coverages to save a buck or two. In many instances, drivers have reduced comprehensive coverage or liability limits only to regret that they should have had better coverage. Your aim should be to purchase plenty of coverage for the lowest price while not skimping on critical coverages.

We just showed you many ways to shop for online. The most important thing to understand is the more rate quotes you have, the better your chances of lowering your rates. Drivers may discover the best prices are with some of the lesser-known companies.