Learn more about how to find affordable car insurance in Colorado — even with bad credit.
Learn more about how to find affordable car insurance in Colorado — even with bad credit.
Jermaine J.
Car insurance can be expensive if you have bad credit. Car insurance companies utilize credit score as a primary rating factor, setting prices based partially on drivers’ credit histories. Because car insurers use historical data showing drivers with bad credit are more apt to file car insurance claims, they account for this risk by assessing more expensive rates.
Car insurance rates with bad credit are contingent upon the company you choose, where you live, and a few other rating factors. We've gathered below typical insurance rates for drivers with bad credit in major Colorado cities, along with rates from a few of the most popular insurance companies, along with tips on how to save on car insurance with bad credit in Colorado.
Colorado drivers pay an average penalty of $1,600 each year for having a credit score in the “worst” tier. Drivers in the "poor" or "below fair to poor" credit tiers will also face more costly-than-average auto insurance rates.
| Credit Tier | Average Annual Rate in Colorado |
| Worst | $3,036 |
| Poor | $2,647 |
| Below Fair to Poor | $2,479 |
| Average — All Credit Tiers | $1,435 |
Car insurance rates will also vary based on the specific area where you park your car. Car insurance companies use your ZIP code to better understand your likelihood of filing a claim: the more claim-prone your area, the more you'll pay.
See below major Colorado cities and their average car insurance rates for drivers with low credit scores.
| City | Average Annual Rate — Worst Credit | Average Annual Rate — Poor Credit | Average Annual Rate — Below Fair to Poor Credit |
| Denver | $3,267 | $2,867 | $2,685 |
| Colorado Springs | $3,165 | $2,768 | $2,592 |
| Aurora | $3,253 | $2,857 | $2,677 |
| Fort Collins | $2,633 | $2,304 | $2,159 |
| Lakewood | $3,103 | $2,720 | $2,550 |
Another factor that contributes to how much you pay for car insurance is the company you select. Every auto insurance company rates policies differently, giving rating factors varying weights in their pricing calculations. Credit can be a primary pricing differentiator between insurance companies. In Colorado, the cheapest insurance company with bad credit is GEICO, which offers average savings of $704 per year in comparison to the second-cheapest company, American Family.
See rates from leading auto insurance companies in Colorado for drivers with bad credit.
| Company | Average Annual Rate — Worst Credit Tier |
| GEICO | $1,461 |
| American Family | $2,165 |
| State Farm | $2,536 |
| Progressive | $3,291 |
| USAA | $3,445 |
If you're finding auto insurance with a low credit score, remember these tips:
