A poor credit score can negatively impact your financial future, especially when it comes time to apply for a car loan or mortgage. Did you also know that bad credit can lead to you paying more for car insurance? There are a few states that prohibit car insurance companies from considering a person's credit score when determining their rate, but Kentucky is not one of them. But a low credit score does not mean you'll be denied car insurance. You just might end up paying a higher insurance premium.
Fortunately, car insurance credit checks in Kentucky are considered "soft inquiries" and won't impact your credit score.
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 13 percent more than average for car insurance in Kentucky. Insurers will use factors like your payment history and total debt to determine your insurance credit score, and in turn your risk level. Insurers want to assess risk to see how likely you are to file a claim in the future. Your credit-based insurance score is just one item companies look at to determine your rate, though. Your driving record and claims history will also be factored into your rate.
It's possible to get car insurance without a credit check in Kentucky. But just like having bad credit, insuring your vehicle this way can be costly. The reason many car insurance companies run credit checks is to help determine how much risk they're taking on by insuring someone. Without the credit check, the risk assessment is somewhat incomplete, so the insurer will charge a higher premium to compensate for that missing information.
You can avoid the credit check process with certain insurance companies in Kentucky, just know you might be paying more for coverage. Be sure to check out some standard insurers on your search, too. You might not want to deal with a credit check, but it might be worth it if you can save some money.
There are a number of car insurance options available in Kentucky, even if you have bad credit. Unfortunately, not many of them are inexpensive options. Travelers is one of the few insurers in Kentucky that has an average monthly cost of less than $200 for drivers with bad credit. SafeAuto's average monthly cost is a little more than $200, but otherwise you could be facing a monthly payment of at least $220.
|Carrier||Avg. Monthly Cost|
|Midvale Home & Auto||$222|
|American Family Insurance||$240|
How much Kentucky drivers pay for their insurance lines up with their respective credit tiers. Drivers in the excellent credit tier in Kentucky are on the lower end of average monthly costs, with a $219 payment. There isn't much of a separation between Kentucky drivers with good or average credit, however. Drivers in the average tier pay just $6 more per month.
There are a number of reasons to maintain good credit, but the $51 difference between what Kentucky drivers with excellent credit and poor credit pay for car insurance is another critical one.
|Credit Tier||Avg. Monthly Cost|
If you have bad credit, where you live in Kentucky will be key in how much you pay for car insurance. Kentucky drivers with bad credit in Owensboro pay $186 a month for car insurance, while those in Louisville, one of the state's most well-known cities, pay on average more than $350 per month.
|City||Credit Tier||Avg. Monthly Cost|
Insurance prices and policies can vary significantly between companies, and a state like Kentucky 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.