The type of vehicle to be insured is probably the largest consideration when shopping around for the best auto insurance for low credit scores. Vehicles with lots of speed or power, poor passenger safety features, or a high likelihood of having liability claims will cost significantly more to insure than safer, lower-performance models.
The next list illustrates coverage rates for the cheaper vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$2,113|
|Dodge Grand Caravan SE||$2,363|
|Honda CR-V EX 2WD||$2,413|
|Toyota RAV4 Limited 2WD||$2,492|
|Chevrolet Malibu Hybrid||$2,502|
|Ford F-150 Lariat Super Cab 4WD||$2,541|
|Ford Explorer Eddie Bauer AWD||$2,548|
|Honda Accord EX-L 4-Dr Sedan||$2,617|
|Honda Odyssey EX-L W/Rear Entertainment||$2,620|
|Toyota Tacoma X-Runner 2WD||$2,630|
|Hyundai Elantra GLS 4-Dr Sedan||$2,620|
|Ford Edge SE 2WD||$2,653|
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Above prices assume single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New York minimum liability limits. Discounts applied include multi-policy, homeowner, multi-vehicle, safe-driver, and claim-free. Premium costs do not factor in your specific Buffalo, NY location which can increase or decrease price quotes considerably.
By looking at the data, you can expect models like the Ford Escape, Dodge Grand Caravan, Honda CR-V, and Toyota RAV4 are the cheaper vehicles to insure for bad credit.
One of the more important factors that help determine the price you pay for insurance is where you choose to live. Areas with a lot of weather claims or more people tend to have more expensive car insurance rates, whereas less populated areas benefit from having to pay less for coverage.
The next table lists the most expensive areas in New York for low credit scores in which to purchase auto insurance. Buffalo comes in at #13 costing $1,548 for the average policy, which is around $129 monthly.
|Rank||City||Average Per Year|
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Information shown are comparative as specific location information can raise or lower prices noticeably.
Get discount Buffalo car insurance rates
Insurers that provide coverage for low credit scores could also offer rate discounts that can lower rates by 35% or more if you can meet the requirements. A list of companies and a summarized list of policyholder discounts are:
- State Farm offers discounts including anti-theft, good driver, multiple policy, student away at school, and good student.
- GEICO has savings for good student, anti-theft, air bags, anti-lock brakes, defensive driver, and military active duty.
- Allstate may offer discounts for FullPay discount, defensive driver, early signing, teenSMART discount, good student, and 55 and retired.
- SAFECO may include discounts for bundle discounts, multi-car, teen safety rewards, anti-theft, and safe driver.
- Farm Bureau policyholders can earn discounts including multi-vehicle, multi-policy, 55 and retired, safe driver, and renewal discount.
- Progressive discounts include homeowner, online quote discount, multi-vehicle, online signing, continuous coverage, and multi-policy.
- AAA has discounts for multi-car, good driver, anti-theft, AAA membership discount, and pay-in-full.
The diagram below illustrates the comparison of car insurance costs with and without policy discounts. The premiums are based on a male driver, no claims or driving citations, New York state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, claim-free, accident-free, multiple policy, multiple vehicle, and anti-theft discounts applied. When discounts are factored in, the average savings per year on insurance for low credit scores is 28% or $415.
Full coverage versus liability only rates
Lowering the price of insurance is important to most drivers, and one easy way to reduce the cost of insurance for low credit scores is to buy only liability coverage. The illustration below illustrates the comparison of annual premium costs with full physical damage coverage compared to only buying liability only. The rates are based on no claims or violations, $250 deductibles, marital status is single, and no discounts are applied to the premium.
If the expense is averaged for all age categories, comprehensive and collision coverage on your policy costs $1,396 per year more than just buying liability only. Many drivers will wonder if full coverage is worth the money. There is no written rule of when to drop full coverage, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is more than about 10% of replacement cost minus your deductible, then it might be time to buy liability only.
For example, let’s assume your vehicle’s settlement value is $4,500 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most your company will settle for is $3,500 after paying the physical damage deductible. If you are paying over $350 a year for comprehensive and collision coverage, then it could be time to drop full coverage.
The chart below demonstrates how deductible levels can increase or decrease premium costs when searching for cheap insurance for low credit scores. The premiums are based on a single male driver, comp and collision included, and no other discounts are factored in.
A 40-year-old driver could reduce rates by $296 a year by increasing from a $100 deductible up to a $500 deductible, or save $444 by switching to a $1,000 deductible. Youthful drivers, like the age 20 example, can save up to $982 or more by choosing a higher deductible.
When raising deductibles, it is necessary to have emergency funds available to satisfy the extra out-of-pocket expense. That is the one drawback of using higher deductibles.