Cheapest Auto Insurance for Drivers with Bad Credit in Kentucky

You have surely seen all the captivating commercials from companies like GEICO and Progressive guaranteeing enormous savings. So you should just pick one randomly, right?

It’s just not that easy, however, as there are a lot of unknown factors like the level of liability coverage you want, whether you just want liability only, how well you maintain your credit, and if you have a clean driving record. This article delves into the best ways to save money and also should give you a good start in finding the cheapest insurance.

 

One of the many criteria used to determine the amount you pay for auto insurance is your address in Kentucky. Cities with more crime and/or more people like Louisville, Saint Matthews, and Jeffersontown tend to have more expensive auto insurance rates, whereas areas with less traffic congestion and claims have the benefit of cheaper auto insurance prices.

The illustration below displays the higher priced cities in Kentucky for drivers with bad credit to buy an auto insurance policy in.

Price information shown is estimated as the specific area where the vehicle is garaged can impact premium rates substantially.

The vehicle you are trying to insure is probably the largest consideration when comparing the best coverage for drivers with bad credit. Vehicles with limited speed and performance, good safety features, or a low likelihood of having liability claims will cost substantially less to insure than high performance models. The information below illustrates auto insurance costs for some of the more afforable automobiles to buy coverage for.

Cost estimates assume single female driver age 40, no speeding tickets, no at-fault accidents, $500 deductibles, and Kentucky minimum liability limits. Discounts applied include claim-free, safe-driver, multi-vehicle, multi-policy, and homeowner. Premium amounts do not factor in the specific area where the vehicle is garaged which can change premium rates significantly.

Table data represents single female driver age 40, no speeding tickets, no at-fault accidents, $500 deductibles, and Kentucky minimum liability limits. Discounts applied include homeowner, claim-free, multi-vehicle, multi-policy, and safe-driver. Information does not factor in your specific Kentucky location which can revise auto insurance rates greatly.

Table data represents single female driver age 40, no speeding tickets, no at-fault accidents, $500 deductibles, and Kentucky minimum liability limits. Discounts applied include multi-policy, safe-driver, claim-free, homeowner, and multi-vehicle. Prices do not factor in garaging location in Kentucky which can impact coverage rates noticeably.

Finding decent, budget insurance is challenging, and determining which companies offer the cheapest car insurance rates for drivers with bad credit may require additional perseverance. Premiums will most likely be somewhat higher than the average price in Kentucky, with the increase attributed to the higher likelihood of claims associated with selling insurance for people with poor credit, but reasonable insurance may be attainable if you look hard enough.

Every insurance provider has a proprietary method to establish rates, so we’ll take a look at the lowest cost car insurance companies in Kentucky. It’s important to understand that Kentucky car insurance rates are based on many factors which can significantly increase or decrease the price you have to pay. Simply improving your credit, buying a home, or getting a reckless driving citation can trigger rate changes resulting in some rates now being higher-priced than the competition.

Cheap Insurance Rates with Bad Credit

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Cincinnati Insurance has some of the most affordable car insurance rates in Kentucky at around $1,115 annually. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual would also be considered some of the most economical Kentucky insurance companies.

As shown in the table above, if you buy coverage from Auto-Owners and switched to Kentucky Farm Bureau, you could realize annual savings of upwards of $243. Customers with Motorists Mutual might save as much as $425 a year, and Grange Mutual policyholders might realize rate reductions of up to $449 a year.

Be aware that those policy rates are averaged across all drivers and vehicles in Kentucky and do not take into consideration a price increase for drivers with bad credit. So the car insurance company that fits your age and vehicle best may not even be shown in the list of companies above. That underscores the importance of why you need to get car insurance quotes using your own individual information.

Difference between full coverage and liability only rates

Finding the cheapest car insurance for drivers with bad credit in Kentucky should be important to the majority of vehicle owners, and one of the fastest ways to lower the cost of insurance is to not insure for full coverage. The illustration below shows the difference between car insurance rates with full physical damage coverage compared to only buying liability only. The premiums are based on no accidents, no driving violations, $100 deductibles, single status, and no discounts are applied.

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Averaged for all age groups, comprehensive and collision coverage on your policy costs $1,873 per year over having just liability coverage. That proposes the question if buying full coverage is worth the money. There is no exact rule of when to drop full coverage on your policy, but there is a general guideline. If the annual cost of coverage is about 10% or more of the vehicle’s replacement cost less your deductible, then you might consider buying liability only.

For example, let’s assume your vehicle’s replacement value is $10,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company will settle for is $9,500 after paying your policy deductible. If you are paying in excess of $950 annually for full coverage, then you may want to consider only buying liability coverage.

Car insurance company ratings

Ending up with a highly-rated company is hard considering how many companies are available to choose from in Kentucky. The rank data below may help you select which providers to look at when comparing auto insurance rates for drivers with bad credit. These rankings include large insurance companies, so companies that have a smaller presence will not be included in the list.

Top 10 Major Auto Insurers in Kentucky Ranked by A.M. Best Rating

1. Travelers – A++
2. USAA – A++
3. GEICO – A++
4. State Farm – A++
5. Erie Insurance – A+
6. Esurance – A+
7. Progressive – A+
8. Nationwide – A+
9. The Hartford – A+
10. Allstate – A+

Top 10 Major Auto Insurers in Kentucky Ranked by Customer Satisfaction

1. USAA – 91%
2. AAA Insurance – 90%
3. Esurance – 90%
4. Nationwide – 89%
5. Travelers – 88%
6. Progressive – 88%
7. Safeco Insurance – 88%
8. State Farm – 88%
9. Allstate – 88%
10. The Hartford – 87%

Best cheap insurance quotes for people with poor credit

Drivers have many ways to comparison shop for car insurance in Kentucky, but the most prevalent methods are using an exclusive agency like State Farm or Auto-Owners, an independent agent, or from a direct company like Geico or Progressive.

Each way has the same basic process, but it’s good to know the differences in how they give price quotes.

Free car insurance images by QuoteInspector.com

Independent insurance agents are appointed by several companies and can get policy pricing from each one. These types of agencies are not employed by one specific company and can give you more rate choices, which can help you get a better chance of saving money. If they find a lower price, your agent can just switch to a different company and you don’t have to find a new agent.

Exclusive agencies are usually restricted to a single insurance company, two popular examples being a Liberty Mutual or State Farm agent. Exclusive agents cannot provide a range of price quotes, so if the price isn’t competitive there isn’t much they can do.

Car insurance from a direct company means you do not use the middleman (the agent) and instead buy direct from companies such as Progressive or Geico. Shopping direct is good for consumers who do not need advice for asset protection and have a good understanding of what coverage options they need.

So which way is best for finding the cheapest car insurance for drivers with bad credit in Kentucky? One answer would be buying direct results in the best prices since there is no need to pay agent commissions, but unfortunately, that is not always true. We could also say that buying car insurance from an independent agent guarantees the lowest rates since there are more companies to choose from, but again, it’s not necessarily true. For the right applicant, exclusive agents have very competitive rates well below independent agents AND direct companies.

Since car insurance prices are based on many different factors, the guaranteed way to find out which one is cheapest is to get rate quotes and compare. Be sure to get prices from all three types to get a good idea who is cheapest. We compiled a list of companies with some of the cheapest online rates that you can click here to view.

How to find the cheapest insurance for drivers with bad credit

Here are some penny-pinching solutions that can help Kentucky drivers locate lower-cost coverage.

• Increase your credit rating
• Buy vehicles with good safety ratings
• Prevent rate increases by staying accident-free
• Buying your home and auto policies from the same company can earn a discount
• Do not pay for full coverage if not needed
• Compare rates regularly to ensure the best deal

That last piece of advice is remarkably important, as was noted in this piece. Insurance rates go up and down frequently, so don’t be unwilling to buy from a different company if a more affordable rate is found. Many drivers tend to have loyalty to a certain company, but it’s not a great idea if that dedication is costing a considerable chunk of change every month. It takes less than five minutes to compare prices and find cheaper insurance for drivers with bad credit.