Insurance companies in Colorado use specific formulas to set an auto insurance rate for a customer. Each company sets its own rates for coverage independently, and a buyer will find that insurance costs can vary significantly between providers. The formulas that companies use to evaluate risk when a driver applies for coverage are confidential, but it’s a safe bet that all of them will look at a person’s driving record when determining how much to charge for coverage. An individual who has a history of moving violations or accidents is going to be charged higher rates than a person who has a clean record.
The insurance company will also consider your age and how long you have been driving. Young drivers and people who have recently obtained their license are more likely to be involved in accidents than individuals who have more experience behind the wheel, and they pay higher rates because of it. The good news for younger drivers is that once they celebrate their 25th birthday rates should start to come down.
The make and model of the car to be insured is another consideration when Colorado auto insurance rates are being calculated. Insurance companies track which ones are most likely to be stolen, as well as repair costs for different models. Choosing to drive a car that requires imported or expensive parts means you will be digging deeper into your pocket to pay for it.