Car insurance for teens and young drivers in Colorado can be expensive due to the higher risk. It’s important to find affordable coverage that provides adequate protection, but how you go about this will make a big difference in how you’re covered and the premium you pay.
Teenagers, especially males, are at a higher risk for accidents in Colorado. While finding cheap car insurance for teens is possible, it’s important to have a plan.
We’re breaking down car insurance in Colorado for teen drivers, what you can expect to pay, why premiums are elevated, the coverage options you may want to consider, and how to save money throughout the process.
How Much Is Car Insurance for Teens in Colorado?
Car insurance for teens in Colorado can be expensive, with an average cost reaching several thousand of dollars per year. It’s not uncommon to see rates reaching between $3,000-$6,000+ depending on the amount of coverage you need among other factors.
While additional coverage can increase rates, it may provide long-term savings. The cost of coverage is influenced by various factors, making it different for each driver. However, at Freedom Insurance Group, teen drivers can save an average of 40% on their policy while still maintaining adequate protection.
Why Cheap Auto Insurance for Young Drivers Is Hard To Come By
Teen drivers cause the highest number of automobile accidents due to inexperience, among other factors. This leads to more expensive auto insurance policies for families, as insurance premiums are calculated based on risk factors, and those with higher risks pay higher premiums. Age is a key risk factor for teens, as supported by data, but other factors also influence insurance rates. Here are the key factors that companies use to calculate monthly premiums:
- The age of the driver along with their gender.
- Whether or not the driver is married or single.
- The amount of coverage needed.
- Where the driver lives.
- Driving records, claims histories, and deductibles are all assessed.
Auto insurance companies assess common risk factors for each driver, then calculate rates using their own algorithms. As a result, auto insurance for teens in Colorado can differ between companies. Comparing coverage from various insurance companies is important to ensure the best possible price.
Teen Auto Insurance Coverage Options in Colorado
New drivers require the right level of auto insurance in the event of an accident. Auto insurance for teen drivers in Colorado should provide enough coverage to stay protected from realistic risks without paying for unnecessary protection.
It’s important to avoid having inadequate coverage for your teen driver because they are more prone to accidents. Therefore, check out the available auto insurance coverages for teens in Colorado and explore your options:
New drivers in Colorado must have liability coverage, which includes property damage and bodily injury coverage. But while minimum coverage can save money on premiums, having additional coverage can help you save money in the long run. Remember, teens are statistically riskier drivers, meaning you may end up paying more out of pocket after an accident without adequate coverage.
Comprehensive coverage safeguards your teen from non-driving related damage like falling objects or rock chips. It also protects their vehicle from weather-related damage, an important consideration for all drivers in the state of Colorado. But note, it comes with a deductible.
If your teen driver causes an accident, liability coverage will only restore the losses of the other party, not your teen’s vehicle. Collision coverage can help cover the cost of repairing or replacing your teen’s car after an accident, regardless of fault.
Full coverage combines liability, collision, and comprehensive coverage into one policy. While it may not be necessary for everyone, it can provide better protection for teen drivers who are at higher risk of accidents.
Additional Coverage Options for Teen Drivers in Colorado
While the options above cover the basics, there are more coverages available for teen drivers in Colorado. To explore additional coverage options for your teen driver, it’s best to consult with your insurance agent as coverage offerings can vary by company. Here are some protection options to consider as a starting point that may be best for your specific needs:
- Accident Forgiveness is an important consideration as it can help teens who may make a mistake as a new driver. Rather than having large increases after an accident, your teen will get a second chance, even if they are at fault, depending on the carrier.
- Medical Payments Coverage is a protection that covers medical bills even if you are at fault. This can also help cover funeral expenses, wages lost by those affected, and the cost of rehabilitation as needed.
- Uninsured/Underinsured Motorist Coverage will help you pay to repair your vehicle or replace your vehicle in the event you have an accident from a motorist that doesn’t have insurance, doesn’t have enough insurance, or fled the scene and failed to produce insurance information, aka, a hit-and-run.
- Gap Insurance pays off your vehicle if it’s totaled after an accident. Regardless of what happens after the wreck, if you have a note, you’ll still need to cover it somehow. This coverage is there to help mitigate this expense with a reimbursement that is equivalent to the difference between the debt you still owe and the vehicle’s actual cash value (ACV).
Coverage for Drivers With a Colorado Learner’s Permit
In the state of Colorado, teens that have a driver’s permit don’t need their own policy. If you are a parent or guardian, you can add them to your own policy, but you’ll still need to make sure you have enough coverage when doing so. Furthermore, you’ll need to make sure they have their own policy by the time they get their license.
When adding your teenager to your policy, be sure to let your car insurance company know. If you don’t you’ll find that many consequences await, including loss of coverage, denial of claims, or not having your coverage renewed down the line. Regardless, because they are required to have insurance to drive with a permit, you’ll need to let your carrier know no matter what.
Discounts for Auto Insurance for Teens in CO
If you’re looking to save on the cost of car insurance for teens in Colorado, there are discounts that can help. Below, we’re exploring some of the most common discounts available. Be sure to speak with a licensed insurance agent to better understand which discounts are available for your coverage to maximize your savings:
Bundling and Multi-Policy Discount Options
Bundling your car insurance with homeowners insurance can provide savings and improved protection. If you’re a guardian of a teen, adding them to your insurance policy and bundling it with your home insurance can be a cheaper option than a standalone policy.
Discounts for Good Grades
If teens are in need of lower premiums, getting good grades can help. Because good students are viewed as less risky to insure, many car insurance companies offer discounts as an incentive. Therefore, improving your GPA can help far beyond the classroom through tangible savings.
Insurance providers are using technology to gather data and offer a telematics discount to clients who install electronic devices in their vehicles. The devices track driving behavior, such as mileage, braking, and speed, and can lead to discounts for teen drivers who practice safe driving.
Low Mileage Discounts
If you maintain lower miles on your vehicle, you can enjoy discounts. This is because if you drive more, you’re more likely to be involved in an accident. Therefore, you are seen as a higher risk and because teen drivers typically don’t drive farther distances, this is a great way to keep more of your hard-earned money.
Discounts for Driving Courses
Teens’ lack of driving experience contributes to the high cost of their car insurance. Driver safety courses can be beneficial in improving teens’ driving skills and can also result in discounts for new drivers. Furthering the driving education of teen drivers in your home can mean safer outcomes and greater savings.
Distant College Student Discounts
College-bound teens face high insurance rates and tight budgets. Fortunately, many auto insurance providers offer discounts for first-time college students living away from home. Combining the good grades discount with this college student discount can lead to significant savings. However, note that there may be distance requirements for this discount to apply.
Higher Deductibles = Lower Premiums
To save on insurance premiums, raising your deductible can be a good idea, but keep in mind that new drivers tend to have more accidents. This means that paying larger deductible amounts in the event of multiple accidents can be challenging for many families. Speaking with a licensed agent about potential discounts can help you identify the best ways to save based on your coverage needs and qualifications.
How To Get Cheaper Car Insurance for Young Drivers in Colorado
To get the best auto insurance for teens in Colorado, it’s important to compare coverage from various companies. But it can be a hassle to sift through the many options available. At Freedom Insurance Group, we partner exclusively with financially stable and reliable insurance carriers in Colorado, offering a range of coverage options that can fit your needs and budget.
These partnerships help us deliver lower rates, more discount possibilities, bundles, and quicker accurate quotes to our clients. You can see how much you’ll save from top-rated insurance companies by using our online auto insurance quote tool.
Since 2005, our agency has been assisting teen drivers with affordable and reliable auto insurance coverage. Our team provides excellent customer service, and expert knowledge, and will help you find the protection you need at the lowest possible price. Contact us today to save on car insurance for teens in Colorado.