A poor credit score can negatively impact your financial well-being, especially when you need to borrow money for a car or house. Bad credit can also raise your insurance rates. A few states prohibit car insurance companies from using a driver's credit history as a factor in determining their rate. Unfortunately, Colorado is not one of those states. Most companies will run your credit if you try to get coverage.
While a poor credit score won't prevent you from getting coverage like it might a loan, you should expect to pay a higher insurance premium.
Insurify's comparison tool will help you make sure you're getting the best possible quote even with a bad credit rating. You can have peace of mind you're not paying any more than need to, and customers save $48 per month on average.
Drivers with bad credit pay almost 10 percent more than average for car insurance in Colorado. Credit scores are just one factor companies look at when determining car insurance rates, however. According to the Insurance Information Institute, companies will review your driving record and claims history along with your total debt and payment history when they set your rate. Insurers use your credit score to figure out your risk level and likelihood that you'll file a claim in the future.
It is possible to get car insurance without a credit check in Colorado. There's a catch, however. Car insurance companies that don't check credit scores often charge higher premiums. Insurance companies that run credit checks do so to calculate how much risk comes with covering a driver. Without that check, the risk calculation is incomplete, and companies will charge more for coverage to compensate for that.
You may not want to go through a credit check, but it might be worth it to see if you can pay less for coverage with a standard car insurance company in Colorado.
Fortunately, there are plenty of car insurance options in Colorado if you have bad credit. Sun Coast, Bristol West and Dairyland offer some of the lowest monthly car insurance rates for Pennsylvania drivers with bad credit, so they'd be a great start. If they're not a fit, there are a number of other car insurance companies to check out that have average monthly rates of less than $250.
|Carrier||Avg. Monthly Cost|
|Sun Coast General Insurance Agency, Inc.||$143|
|American Family Insurance||$286|
|Midvale Home & Auto||$291|
Colorado car insurance rates follow a relatively straight path; the better your credit is, the lower your average monthly insurance cost will be. The difference in average monthly insurance costs between a Colorado driver with excellent credit and one with poor credit is about $48. This is further proof that a lot more than a driver's credit score goes into determining insurance rates.
|Credit Tier||Avg. Monthly Cost|
A poor credit score will be costly for drivers seeking car insurance in a handful of Colorado cities. Fort Collins is one of the few cities where Colorado drivers with bad credit can expect a monthly payment of less than $200. Meanwhile, drivers in Denver, Colorado Springs and Aurora are looking at a $240 per month car insurance bill if they have bad credit.
|City||Credit Tier||Avg. Monthly Cost|
Insurance prices and policies can vary significantly between companies, and a state like Colorado draws a wide variety of choices when factoring insurance rates for drivers with bad credit.
Insurify's rate comparison tool will help you make sure you're getting the best possible quote based on your needs and location. You can have peace of mind you're not paying any more than you need to, and customers save $585 per year on average.