The words “bargain” and “auto insurance” really don’t belong together, in particular when you are looking for the cheapest auto insurance for drivers with bad credit. To help control this cost, let’s get started by showing you some things that help determine car insurance rates, and find out if you can lower the cost of the next policy you buy.
The car, truck, or SUV driven is probably the largest consideration when comparing cheap auto insurance for drivers with bad credit. Vehicles with more horsepower, poor safety features, or high incidents of liability claims will cost quite a bit more to insure than safer models.
The table below outlines coverage rates for a selection of the cheapest vehicles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Ford F-150 STX Regular Cab 4WD | $1,241 |
| Toyota Tacoma 4WD | $1,246 |
| Ford Escape Limited 2WD | $1,285 |
| Honda CR-V EX-L 2WD | $1,293 |
| Toyota RAV4 Sport 4WD | $1,311 |
| Toyota Camry LE | $1,317 |
| Chevrolet Malibu LT | $1,337 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $1,353 |
| Honda Odyssey LX | $1,379 |
| Toyota Prius | $1,397 |
| GMC Sierra 2500HD SLE Regular Cab 4WD | $1,405 |
| Chevrolet Silverado LT Regular Cab | $1,413 |
| Nissan Rogue S 2WD | $1,405 |
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Data based on married female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include multi-policy, claim-free, safe-driver, multi-vehicle, and homeowner. Price information does not factor in vehicle location which can impact auto insurance rates greatly.
Based upon these rates, we can infer that makes and models like the Ford F-150, Toyota Tacoma, Ford Escape, Honda CR-V, and Toyota RAV4 are the most economical vehicles to insure for people with poor credit. Car insurance rates will be more expensive because there is more risk for drivers with bad credit, but overall those makes and models will most likely have the lowest insurance rates available.
Deciphering which companies have the cheapest car insurance rates for drivers with bad credit takes a little more effort than just picking a company at random. Each auto insurance company uses different criteria for filing rates in each state, so we need to take a look at the lowest cost car insurance companies in Toledo, OH.
Find the Cheapest Auto Insurance with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $628 |
| 2 | Erie | $661 |
| 3 | Frankenmuth | $680 |
| 4 | Allied | $690 |
| 5 | USAA | $711 |
| 6 | Travelers | $733 |
| 7 | Cincinnati Insurance | $749 |
| 8 | Merchants Insurance Group | $755 |
| 9 | Motorists Mutual | $800 |
| 10 | Grange Mutual | $812 |
| 11 | General Casualty | $829 |
| 12 | Central Mutual | $840 |
| 13 | Hastings Mutual | $866 |
| 14 | State Farm | $885 |
| 15 | Atlantic States | $913 |
| 16 | Westfield | $936 |
| 17 | Western Reserve | $970 |
| 18 | Progressive | $991 |
| 19 | Auto-Owners | $998 |
| 20 | Nationwide | $1,018 |
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Utica National quotes some of the best car insurance rates in Toledo at around $628 each year. This is $412 less than the average price paid by Ohio drivers of $1,040. Erie, Frankenmuth, Allied, and USAA also rank well as some of the more affordable Toledo, OH car insurance companies.
In the rate table above, if you currently have coverage with Allied and switched to Utica National, you could realize an annual savings of about $62. Policyholders with USAA could save as much as $83 a year, and Travelers policyholders might see rate reductions of $105 a year.
Be aware that those estimates are averaged for all types of insureds and vehicles and and are not calculated with an exact vehicle garaging location for drivers with bad credit. So the insurer that can offer you the lowest price may not even be in the list above. That emphasizes why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
How much more does full coverage cost in Toledo?
Buying cheaper car insurance is important to most people, and a good way to buy cheaper insurance for drivers with bad credit is to buy only liability coverage. The diagram below compares car insurance rates with and without full coverage. The price estimates are based on no accidents or driving violations, $500 deductibles, marital status is single, and no additional discounts are factored in.
If we average the cost for ages 20 through 70, full coverage costs $1,436 per year more than insuring for liability only. At some point, about every driver wonders when is it safe to stop buying full coverage. There is no exact formula for phasing out full coverage on your policy, but there is a broad guideline. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.
Discounts on Toledo car insurance rates
Insurance providers that provide policies for drivers with bad credit may also give you price discounts that may potentially lower prices by 35% or more if you qualify. A list of companies and the discounts they provide are shown below.
- American Family includes discounts for multi-vehicle, bundled insurance, good driver, TimeAway discount, and Steer into Savings.
- State Farm offers premium reductions for multiple autos, Drive Safe & Save, defensive driving training, student away at school, Steer Clear safe driver discount, and good student.
- 21st Century has savings for good student, theft prevention, defensive driver, air bags, and homeowners.
- Travelers may have discounts that include home ownership, driver training, multi-policy, payment discounts, IntelliDrive, and multi-car.
- GEICO discounts include anti-theft, military active duty, anti-lock brakes, air bags, federal employee, and daytime running lights.
The illustration below illustrates the comparison of car insurance rates with and without discounts being applied to the rates. The information is based on a male driver, no claims or driving violations, Ohio state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with claim-free, defensive driving course, passive restraint, accident-free, multiple policy, and vehicle safety discounts applied. When discounts are applied, theamount saved on car insurance for drivers with bad credit is 28% or $400.
The importance of comparing Toledo car insurance rates
Toledo car insurance rates are influenced by many factors which can significantly increase or decrease the cost of coverage. Getting older, becoming a homeowner, or getting a reckless driving citation can produce rate changes that may make certain companies cheaper than competitors.
In addition, auto insurance companies amend pricing without warning to adjust for unexpected claims or profits. A period of increased losses may result in more expensive prices, while profitable underwriting may produce lower-cost Toledo car insurance rates.
To illustrate this example, the chart below shows a variety of companies that have the cheapest car insurance in Toledo, OH for a 40-year-old male driver with a good driving record, no prior claims, and a high credit rating. Based on his current situation, Utica National offers the cheapest car insurance rates in Toledo at $849 each year. This is $191 less than the average policy premium paid by Ohio drivers of $1,040. Erie, Frankenmuth, Allied, and USAA are the remaining most affordable Toledo, OH auto insurance companies.
The next chart shows rates after we give the driver from the first set of rates a couple of claims, less-than-perfect credit, and a stop sign violation. Because each company uses a different method for determining prices, comparing insurance quotes could result in a significantly different list of the cheapest Toledo car insurance companies as shown below.
Merchants Insurance Group now has the best car insurance rate in Toledo with Cincinnati Insurance, Motorists Mutual, Grange Mutual, and General Casualty now being in the top five. This example illustrates why drivers need to compare lots of rates when trying to get the most affordable insurance quotes for drivers with bad credit. Insurance prices are impacted by many factors and can decrease or increase without notice, so the most economical option two years ago may now not even be in the top five.