The words “low-priced” and “insurance” probably shouldn’t be used together, specifically when trying to find the best coverage prices for drivers with bad credit. Because it’s not cheap, let’s familiarize you with a few of the things that impact auto insurance premiums, and come up with some ideas to take a little off the next policy you buy.
The vehicle model needing coverage is probably the biggest factor when comparison shopping for the best coverage for drivers with bad credit. Vehicles with lots of speed or power, a lack of safety features, or a history of substantial liability claims will cost significantly more to insure than safer models.
The table below ranks auto insurance rates for the most affordable vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$1,885|
|Honda CR-V LX 2WD||$1,893|
|Honda Odyssey LX||$2,069|
|Chevrolet Silverado LT Extended Cab 4WD||$2,227|
|Chevrolet Malibu LS||$2,233|
|Ford Explorer Limited 2WD||$2,271|
|Ford Focus SEL 4-Dr Sedan||$2,299|
|Toyota Corolla LE||$2,343|
|Chevrolet Equinox LTZ AWD||$2,386|
|Jeep Wrangler Rubicon 4WD 2-Dr||$2,417|
|Nissan Rogue SL AWD||$2,508|
|Volkswagen Jetta 2.0T Station Wagon||$2,523|
|Toyota Camry Hybrid||$2,551|
|Toyota Camry Hybrid||$2,559|
|Dodge Grand Caravan Hero||$2,551|
|Jeep Grand Cherokee Laredo 4WD||$2,557|
|Ford F-150 STX Regular Cab 4WD||$2,589|
|Chevrolet Impala LS||$2,676|
|Hyundai Elantra SE 4-Dr Sedan||$2,685|
|Ford F-250 XL Super Cab Turbo Diesel 2WD||$2,707|
|Toyota RAV4 Limited 4WD||$2,732|
|Nissan Altima 2.5 4-Dr Sedan||$2,740|
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Data variables include single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include homeowner, multi-policy, multi-vehicle, claim-free, and safe-driver. Price estimates do not factor in specific location which can increase or decrease coverage rates greatly.
By looking at the data, you can figure that models like the Ford Escape, Honda CR-V, and Honda Odyssey are going to be some of the more affordable vehicles to insure for people with poor credit. The cost of auto insurance will trend higher just because there is more claim risk for drivers with bad credit, but generally speaking those makes and models will have the cheapest auto insurance rates available.
For people with poor credit, one of the largest components that are looked at to determine insurance cost is your zip code. Cities with larger populations tend to have higher rates, whereas areas with less crime or weather claims receive better rates.
The table below sorts the priciest cities in Kentucky for drivers with bad credit to purchase a policy in. Louisville is ranked #1 with a yearly premium of $2,090 for the average insurance policy, which is about $174 each month.
|Rank||City||Premium Per Year|
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Information shown are approximated as the specific zip code location can revise insurance rates noticeably.
Comparing quotes for low-cost auto insurance is not easy, and determining which company has the cheapest car insurance rates for drivers with bad credit involves even more rate comparisons. Every insurance company uses different criteria to establish rates, so let’s rank the most competitive car insurance companies in Louisville.
Find the Cheapest Auto Insurance with Bad Credit
|Rank||Company||Cost Per Year|
|2||Kentucky Farm Bureau||$1,128|
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Cincinnati Insurance normally has some of the most affordable car insurance rates in Louisville at around $1,093 per year. This is $1,050 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual also qualify as some of the cheapest Louisville, KY car insurance companies.
In the above rates, if you have coverage with Auto-Owners and switched to Cincinnati Insurance, you might realize a yearly savings of approximately $264. Policyholders with Grange Mutual could save as much as $484 a year, and Motorists Mutual customers might see rate reductions of $508 a year.
Be aware that those policy rates are averaged across all insureds and vehicles and and are not figured with a specific location for drivers with bad credit. So the auto insurance company that is best for you may not even be in the top 21 companies in the list above. That’s why you need to get auto insurance quotes using your own driver information and specific vehicle type.
Selecting a high-quality insurance company is difficult considering how many choices there are in Louisville. The company information in the lists below could help you choose which car insurance providers you want to consider when comparing insurance rates for drivers with bad credit.
The rankings below only include companies with a nationwide focus, so companies without a large exposure will not be included in this list. To check prices from these top insurers and more, follow this link.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies
The information below demonstrates how deductible levels can increase or decrease insurance rates when trying to find cheap insurance for drivers with bad credit. The premiums are based on a single male driver, full physical damage coverage, and no additional discounts are factored in.
The data above shows that a 50-year-old driver could save $374 a year by changing from a $100 deductible up to a $500 deductible, or save $566 by choosing a $1,000 deductible. Youthful drivers, such as the Age 20 example, could potentially save up to $1,240 or more by using a higher deductible.
If you make the decision to raise deductibles, it is important to have plenty of money set aside to allow you to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Liability only or full coverage
Buying cheaper car insurance is important to most drivers, and one of the best ways to buy cheaper insurance for drivers with bad credit is to buy only liability coverage. The example below illustrates the difference between insurance premiums with liability coverage only compared to full coverage. The data is based on no claims or driving citations, $250 deductibles, drivers are single, and no discounts are applied.
If the expense is averaged for all age categories, physical damage coverage on your policy costs $1,718 per year more than just buying liability insurance. That is a significant amount which raises the question if buying full coverage is a waste of money. There isn’t a written rule for eliminating comp and collision coverage, but there is a broad guideline. If the annual cost of coverage is more than 10% of the replacement cost minus the deductible, the it may be a good time to stop paying for full coverage.
For example, let’s assume your vehicle’s settlement value is $11,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most your company would pay you is $10,000 after the policy deductible has been paid. If it’s costing you more than $1,000 annually for physical damage coverage, then it’s probably a good time to buy liability coverage only.
There are some circumstances where removing full coverage is not in your best interest. If you haven’t paid off your loan, you have to maintain full coverage in order to keep the loan. Also, if you don’t have enough money to buy a different vehicle in the even your car is totaled, you should not opt for liability only.
How to find more affordable car insurance for drivers with bad credit
The list below shows many money-saving solutions that can help Louisville drivers get low-cost coverage.
- Higher physical damage deductibles lower rates
- Do not file small claims
- Save money by bundling your home and auto policies
- Older vehicles may not need full coverage
- Vehicles with good safety ratings have lower liability rates
- Pay cheaper rates with good credit scores
- Compare quotes from other companies often
That last idea is remarkably necessary, as was pointed out in this article. Coverage rates can be changed at any time, so you should be ready to change to a new company if a cheaper price is available.
Being loyal to a particular company is commendable, but it’s not a good idea if that dedication is costing hundreds of dollars year after year. Take a few minutes and compare prices and find cheaper car insurance for drivers with bad credit in Louisville.
If you have questions and prefer to get some guidance when trying to find lower insurance rates for drivers with bad credit, the agencies below can most likely help you determine which coverages and limits you need.
To locate a Louisville insurance agent using an interactive map, click the button after the list or click here to compare price quotes now.
Charlton Grant Sr – State Farm Insurance Agent
1802 Farnsley Rd – Louisville, KY 40216 – (502) 448-0202
Bob Savko – State Farm Insurance Agent
10839 Bluegrass Pkwy – Louisville, KY 40299 – (502) 499-7575
Glenn E Martin Insurance
10226 Shelbyville Rd – Louisville, KY 40223 – (502) 245-8870