First off, get to know the facts about car insurance in Colorado. The state’s average auto insurance premium was estimated as $1,630 in 2009. This is below the national average, which is estimated as $1,735. So you’ll already have a good thing going for you when shopping for car insurance in Colorado. This gives you a starting point to know what premiums are reasonable for your teen driver. And no matter where you live in the state – Colorado Springs, Denver, Lakewood, Pueblo, Boulder, Westminster – you’ll be relieved to know that no two providers are the same. Each has its own way of determining risk and pricing.
Colorado State Law about Car Insurance
Motorists in Colorado must purchase the minimum required liability insurance. Bodily Injury Liability coverage is required with a minimum of $25,000 per individual and $50,000 per accident. Drivers must also carry $15,000 in Property Damage coverage. The state of Colorado has a Tort system, meaning if it is determined that your teen is at fault in an accident, he will be responsible for the repairs. Please have your teen focus on carefulness while driving. Just one accident by a teen can skyrocket your premium!
You should consider other types of coverage based on your needs. Colorado providers offer uninsured/underinsured motorist coverage, collision, towing, comprehensive and other types so you can pick and choose from these to add additional coverage to your teen’s liability. Collision may be required by your lender if you are still making loan payments for your car.
Add Your Teen to Your Policy for Savings
You can save money by adding your teen to your own policy instead of establishing a brand new policy on a different vehicle. If you have a clean driving record, good credit and have basically built up a number of discounts, then the impact on your premium won’t be as much. However, if you have a poor driving record and this has caused your premium to increase, then you might be better off getting a separate vehicle for your teen.
Teen Car Purchases
Consider buying a four-door, small car or sedan type car for your teen. Avoid buying a sports cars at all costs, and definitely check the state’s “10 Most Stolen Vehicles” list (especially if you live in a high crime area). Just a few of the “hot” wheels on this list include the 1994 Honda Accord, the 1995 Saturn SL, the 2001 Dodge Ram Pickup and the 2000 Honda Civic. Check statistics for Colorado and the United States that may affect your teen’s car insurance. For example, stats on car crashes, the type of safety features available on the car you are considering, security features, etc. Whatever vehicle you choose, keep in mind that paying full cash for the automobile will allow your teen to avoid collision coverage. Your teen might not start out with a fancy or cool car, but he’ll save hundreds per year on car insurance until he establishes a good driving record.
Other Ways to Save
There are two main ways a teen can save on car insurance. One is to take a defensive driving course. These courses are offered as an elective in most schools and can be valuable in terms of teaching your child safety in driving. It can also knock off up to 15 percent on his car insurance rate. If your teen did not take this course in high school, there might be other driving classes in and around your local area. It will be money and time well spent! A second way to lighten the car insurance burden is to get good grades in school. Insurance providers often give a discount if a student proves to be responsible in school. Other than these two methods, your teen will have to determine to drive safely and establish a very good driving record over the course of several years.
Be sure to consider all your options and use online resources to compare Colorado providers. Some of the popular providers that serve motorists in Colorado include Allstate, Bristol West, GMAC, Atlantic Master Plan, Safeco, Travelers, State Farm, Colorado Casualty, Progressive, Allied and others. When comparing, be sure to include possible discounts and consider options for both adding your teen to your policy and buying a car for him. Get adequate coverage so you can enjoy peace of mind as your teen enters this stage of his life.