Drivers in Colorado may be paying more for car insurance than they were a few years ago — quite a bit more, in fact. Record high rates of inflation, supply chain shortages, and the increased value of used cars due to the reduced number of new cars on the market are all contributing to the rising cost of car insurance across the country.
But, compared to the rest of the country, average car insurance rates in Colorado are only slightly higher than the national average. And Colorado drivers who’ve seen recent rate increases can still find affordable car insurance rates by shopping around to find cheap coverage.
Did car insurance rates go up in Colorado?
Insurance rates in Colorado went up in 2022, with some reports showing rate increases of more than $250 per year.  But this steep increase in car insurance rates isn’t specific to Colorado. Drivers across the country are seeing their rates go up, sometimes significantly, for a variety of reasons.
Why are auto insurance rates going up in Colorado?
There isn’t exactly one answer. Your insurance rate, which is the amount you pay for car insurance each month or year, can change for a variety of reasons. Sometimes rates change because of something specific to you, like being in an at-fault car accident, but other times they change because of something you can’t control, like inflation or changes to the insurance industry.
There are a few reasons that your auto rates might be going up in Colorado, including:
According to the New York Times, the U.S. government reported in 2022 that average prices had risen 8.3% since April of 2021.  America hasn’t seen inflation rates like this in 40 years, and your car insurance premium is just one of the many things that will likely see an increase in price because of it.
Inflation is pushing operating costs upward for insurance companies across the country, including the costs of car parts and repairs when you file a claim, which means you can expect those costs to be passed on to you at your next policy renewal.
Supply chain disruptions
In addition to higher than normal inflation rates, the overall value of both new and used cars went up significantly from 2021 to 2022, due in part to supply chain issues that impacted the auto manufacturing industry.
The cost to repair or replace a used car after an accident went up about 26% and the cost of new vehicles rose by 10%.  This means insurance companies saw a sharp increase in the amount they had to pay for claims, increasing car insurance rates for drivers everywhere, not just in Colorado.
Colorado is one of several states that has legalized cannabis use, and research showed a sharp increase in the number of drivers involved in fatal crashes in Colorado who also tested positive for marijuana in the years after legalization. In fact, the number of fatal crashes where drivers tested positive for marijuana more than doubled between 2013 and 2018. 
There haven’t been any studies showing that this increase is connected to the legalization of recreational cannabis, but many insurance companies may consider this increase reason enough to raise rates in Colorado to compensate for the increased risk.
Your driving profile
Insurance rates are based on a number of factors, some of which you can’t control, like your age, and some of which you can, like the type of car you drive. If something has changed in your life, like moving from Fort Collins, where rates tend to be cheaper, to Denver which has pricier car insurance, you might see a rate increase when you update your policy..
Changes to your coverage, like adding a new car or driver, or changing your limits or the types of coverage you have, can also lead to rate increases. And a recent claim or at-fault accident will almost certainly lead to higher car insurance rates.
How much is the average car insurance rate in Colorado?
Drivers in Colorado pay an average of $1,751 per year for full coverage car insurance, making Colorado slightly more expensive than the national average.
Insurance companies use claims information from your city or ZIP code, like the number of accidents or moving violations reported annually, to help set rates for drivers who live there, which means drivers in one city could pay much more than drivers in another.
For example, drivers in Denver pay an average of $2,049 per year for full coverage, while drivers in Fort Collins pay an average of $1,568 per year.
Population density is a big factor in setting your rates, which means drivers in big cities will likely pay more for insurance than drivers in more rural areas. Here’s how much Colorado drivers pay for car insurance in the state’s ten biggest cities:
Colorado Springs: $1,980
Fort Collins: $1,568
How much is car insurance per month in Colorado?
Drivers in Colorado pay an average of about $146 per month for full-coverage car insurance, but that doesn’t mean you can’t find cheaper options.
Drivers who have only the minimum coverage required by the state pay an average of $544 per year, which breaks down to around $45 per month. This is more affordable than full coverage insurance, but the state minimum insurance requirements only include liability coverage, which doesn’t cover damage to your own vehicle.
Drivers who want comprehensive and collision coverage should get a full coverage insurance policy, and drivers who want to have more coverage in case of an accident should consider higher levels of liability insurance.
Will my car insurance increase after an accident in Colorado?
It might. If your car is damaged and it isn’t your fault (like if your car is damaged in a wildfire) it probably won’t affect your insurance rates, but an at-fault accident could cause your rates to go up.
Some car insurance companies offer benefits to prevent an increase in your premium, like first accident forgiveness, but the odds are good an at-fault accident will cause your rates to increase. And if the car accident involves another violation, like a DUI or running a red light, you can expect your rates to increase by a lot.
Average annual rate
Hit and Run
Driving with a suspended license
Driving with an open container
Passing a school bus
Following too closely
Failure to stop at a red light
Failure to yield
Failure to show documents
Driving without Lights
Driving with expired registration
Not at-fault Accident
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states, plus Washington, D.C.
For full coverage policies, the following coverage limits were used:
Bodily injury liability: 50/100
Property damage liability: $50,000
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by the state or insurer.
Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers age 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of insurance costs. Your actual quotes may differ.