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Is Car Insurance Cheaper in Texas or Colorado?

cheap car insurance for young drivers 

Car insurance rates vary among states, just like how insurance companies have also varying insurance premiums. Here we look at two states and compare which one of them offers cheaper car insurance.

Car Insurance in Texas (TX)

In the state of Texas you’ll find many car insurance agencies offering cheap insurance premiums. If you want to find the best quote that will suit your standards, it is advised to search within you area or state first.  

Car insurance in Texas requires the following:

· The law requires that every car owner or driver must be able to carry an insurance that covers Bodily Injury Liability of up to $50.00 for every accident and $25,000 for every person.

· From April 2008, 25/50/25 coverage was implemented, which meant that Property Damage Liability must be purchased at $25,000 minimum. However, by January 2011, the rates went up to 30/60/25.

· According to the Texas state Tort system, in order to claim insurance, the person involved in an accident must be found “at fault”; otherwise, the insurance company will not be responsible for the damages.

· Uninsured or Underinsured Motorist Bodily Injury insurance coverage is not required in the state of Texas but it is recommended by the insurance industry.

In 2010, research showed that the state of Texas has annual rates slightly above the average. They have been generating an annual amount of $1,571 compared to the national average which only comes at about $1,566. A common misconception among many people is how insurance companies collaborate to set rates. As a result, they don’t look for other options and settle for the first one they come across. Insurance companies don’t have a fixed rate, and their offers may vary from one another as also their marketing strategies. In Texas you can search for possible money saving deals at CheapCarInsurance.net where you can also find rate comparisons.

Car Insurance in Colorado (CO)

In the state of Colorado, offered car insurances are considered unique. They are among those who rank in the higher 1/3 of the country when it comes to insurance premiums averaging at about $850 annually. But although this is the case, you can still find cheap insurance rates offered within the state.

If you are planning to get your car insurance in the state of Colorado, you must first learn about the amount of coverage that is required, since both coverage and liability amounts significantly varies. Car insurance is governed by the state and the laws are different from all other states.

Car insurance in Colorado requires the following:

In other states, insurance companies provide a minimum amount of $100,000 as coverage for bodily injury, and $300, 00 for every accident. However, in Colorado, the state only requires car drivers to carry $25,000 for bodily injury and $50,000 for every accident.    

The law states that for property damages, the amount required will be $15,000.  

Coverage for uninsured drivers, collision or comprehensive insurance is not mandatory. However, the state requires every insurance company to provide it nonetheless.  

Medical policy is not mandatory, but if in any case the policy holder does not decline the offer, it will be directly added to the insurance policy amounting up to $5,000.  

Colorado is a state with large open spaces and low population, which is why driving styles in that area, differs from any other places in the country. Record shows that their accident rate is very low compared to others. Many companies provide sufficient coverage at cheap rates. You should also search for discounts and offers that are best for your limited budget especially if you are a first time driver. Common offered discounts include coverage for multiple vehicles, low mileage and GPA-based.

Texas Vs Colorado

According to the National Association of Insurance Commissioners, statistics showed that car owners or drivers in the state of Texas have higher rates of car insurance premium compared to the state of Colorado. Since 2007, Texas car insurance premiums had an average of $808, while Colorado car insurance had an average rate of $738 


That answers the question of which among the two states offer cheaper car insurance rates. If you want real savings, you should shop for more car insurance quotes in your area or online. Comparing more than four insurance deals will help you in knowing which of them will be able to provide you with sufficient coverage and greater benefits in the long run. Others may seem to be very attractive at first glance but if you add all the extras, you’ll find that the service you get is not adequate compared to what you pay for, so be wise and thorough.