Denver is one of the most populated cities in Colorado. It is also Colorado’s capital. With over 600,000 residents, it is also known for its home sports teams Colorado Avalanche, Denver Nuggets, Colorado Rockies, and Denver Broncos. People in Denver are highly dependent on their car. Over 80% of the residents commute for work by driving their car or opt for a carpool. It is labeled as the Mile-High City. It is an expensive to have auto insurance in Denver. Even though it is expensive for auto insurance, it is advisable for every Denver resident to take auto insurance in Denver. You can check the best car insurance companies and decide the most appropriate for you.
Living in a good neighborhood is safe for you as well as it plays a factor in getting better insurance rates. A neighborhood with crime and car theft can lead to high insurance cost. In Denver, Littleton area is cheaper than other areas in the neighborhood.
Car theft in Denver is quite high. It stands second place in the state. Insurance companies view this as a risk. Insurance charges will be quite high in areas where car theft is rampant. However, residents of Denver are required to have minimum insurance coverage to drive in the city. The minimum coverage of car insurance is:
- $25, 000 per person – Bodily injury
- $50,000 per accident – Bodily injury
- $15,000 per accident – Property damage
Streets in Denver are grid oriented. They are designed diagonally as northeast, northwest, southwest, and southeast. This design could be disorienting for drivers while driving; however, it is for the snow to melt easily. The streets get sunlight either in the morning or afternoon, which causes the snow to melt.
Factors that Determine Auto Insurance in Denver
Denver is a bicycle-friendly place. Few of the streets have bicycle lanes since a good number of residents commute to work on their bicycle. B-Cycle is a program to share bicycles and is among the biggest programs in the United States. Around 850 miles are paved for bicycle paths through the parks and sides of water bodies. Cyclists are supposed to follow the rules as any other vehicle owners. Other vehicle owners should watch out for cyclists and similarly treat them like someone driving a car or truck.
Gender also plays a role in getting you a cheaper or expensive insurance policy. Males get at least 3 percent cheaper insurance rate than females. A married individual is likely to get 5 percent cheaper insurance rates than a divorced or single status individual. Single and divorced status individuals pay an expensive premium amount as compared to others.
Age is another factor that plays a key role in your insurance rates. Teenagers are considered inexperienced drivers, and hence, they pay the highest premium amount than anyone else. However, as the age group turns to 20, the premium amount declines. It continues to decline til the age of 50. Once the age group is 60, the premium rates start to rise again.
Though age and gender are not in your hands, a good driving record is in your hands. Driving record is taken into consideration by every insurance company when selling insurance. Speeding, accidents, and violations of road rules can get you a higher insurance premium. Reckless driving will cost you a higher premium; hence, it is essential that you keep your cool while driving.
Types of Coverage for Car Insurance in Denver Colorado
Residents are advised to purchase additional coverage along with the minimum required insurance limit when they opt for car insurance in Denver Colorado. The additional offerings are the uninsured motorist coverage, underinsured motorist policy, medical coverage, collision coverage, and comprehensive insurance policy. Auto insurance is calculated based on factors like age, driving history, neighborhood, credit history, and car type.
Insurance companies also look into your credit ratings. An individual with a not so good credit score will have higher insurance rates. Maintain a good credit score, and you will get a better insurance charge. The premium rates will come down if you repair your score.
Before you buy insurance, check NAIC ratings for each insurance company. Compare their benefits, price, and coverage and then decide on buying insurance from a reputed company. Don’t focus on buying cheaper insurance policies. Look for financially stable companies and the ones that you can trust.