Wouldn't this article be short if you could know instantly the best company in Cincinnati that has the best deal on coverage for drivers with bad credit? Regrettably, it's not quite that easy, as there are a lot of unknown factors such as if you own or rent your home, if you have a tendency to get into accidents, and your financial stability, that all have an effect on the price of a policy. We will try to cover the things that cause high insurance rates and educate you enough to have some help in finding cheaper rates.
The vehicle you are buying coverage for is one of the primary factors in finding the most affordable car insurance for drivers with bad credit. Vehicles with average performance, good safety features, or a low likelihood of having liability claims will cost substantially less to insure than adrenaline junky models.
The table below presents car insurance rates for some of the cheaper automobiles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape Limited 2WD||$1,274|
|Ford Focus SES 4-Dr Sedan||$1,522|
|Hyundai Elantra Blue 4-Dr Sedan||$1,529|
|Honda CR-V LX 2WD||$1,527|
|Honda Accord LX-P 4-Dr Sedan||$1,533|
|Toyota Tacoma X-Runner 2WD||$1,550|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,565|
|Jeep Grand Cherokee Limited 4WD||$1,578|
|Dodge Grand Caravan CV||$1,598|
|GMC Sierra 2500HD SLT Extended Cab 4WD||$1,654|
|Ford Edge SE 2WD||$1,677|
|Chevrolet Impala LT||$1,687|
|Toyota RAV4 Sport 4WD||$1,696|
|Volkswagen Jetta LE 4-Dr Sedan||$1,687|
|Dodge Ram Crew Cab Sport 2WD||$1,712|
|Ford Explorer Limited 4WD||$1,717|
|Compare Cheap Rates Go|
Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include multi-vehicle, claim-free, multi-policy, safe-driver, and homeowner. Rate information does not factor in the specific area where the vehicle is garaged which can modify coverage rates greatly.
Based upon these rates, you can figure that makes and models like the Ford Escape, Toyota Prius, and Ford Focus are most likely to be some of the more affordable vehicles to insure for people with poor credit. The cost of auto insurance will tend to be more expensive anyway because there is a higher risk for drivers with bad credit, but overall those particular vehicles will tend to have the cheapest car insurance rates compared to other types of vehicles.
Establishing which companies quote the lowest-priced insurance rates for drivers with bad credit involves more work than just getting one or two price quotes.
Every car insurance company used slightly different criteria to determine premium rates, so to begin we'll rank the most budget-friendly insurance companies in Ohio. Keep in mind that Cincinnati insurance rates are impacted by many factors which can significantly increase or decrease the price you pay for coverage. Simply turning a year older, getting married, or getting a reckless driving citation can trigger price changes resulting in some companies being more affordable than competitors.
Best Cheap Insurance Rates with Bad Credit
Utica National normally has some of the cheapest car insurance rates in Cincinnati at around $647 annually. This is $393 less than the average price paid by Ohio drivers of $1,040. Allied, Erie, Frankenmuth, and Travelers also rank well as some of the cheapest Cincinnati, OH car insurance companies.
As the example above demonstrates, if you currently have a policy with Frankenmuth and switched to Utica National, you could earn an annual savings of in the vicinity of $40. Customers with Travelers might save as much as $65 a year, and USAA customers might reduce rates by $86 a year.
To find out how your current rates compare, click here to get quotes or click through to the companies below.
Be aware that those policy prices are averaged for all drivers and vehicles in Ohio and are not factoring in a specific zip code for drivers with bad credit. So the car insurance company that has the lowest price for you may not even be in the top 33 companies shown above. That illustrates why you need to get quotes using your own individual information.
The example below highlights how deductible choice can raise or lower insurance prices when trying to find cheap insurance for drivers with bad credit. Data assumes a single male driver, full physical damage coverage, and no policy discounts are applied.
The chart above illustrates that a 30-year-old driver could pocket $210 a year by increasing from a $100 deductible up to a $500 deductible, or save $318 by changing to a $1,000 deductible. Young drivers, like the 20-year-old example, could save as much as $612 or even more by using a higher deductible.
If you do raise deductibles, it will be required to have plenty of discretionary funds to enable you to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
How to get discounts on Cincinnati car insurance rates
Car insurance companies that provide coverage for drivers with bad credit may also give you price discounts that could lower prices by as much as 30% if you meet the requirements. A list of companies and a selection of discounts can be read below.
- State Farm may have discounts that include good driver, safe vehicle, multiple autos, multiple policy, driver's education, Steer Clear safe driver discount, and good student.
- GEICO may offer discounts for military active duty, five-year accident-free, anti-theft, federal employee, and seat belt use.
- SAFECO offers discounts including accident prevention training, teen safety rewards, multi-car, teen safe driver, and homeowner.
- Farmers Insurance policyholders can earn discounts including mature driver, distant student, bundle discounts, business and professional, youthful driver, electronic funds transfer, and homeowner.
- AAA has savings for anti-theft, education and occupation, good student, AAA membership discount, multi-policy, pay-in-full, and multi-car.
- USAA offers discounts for good student, driver training, loyalty savings, multi-vehicle, new vehicle, annual mileage, and safe driver.
The example below shows the comparison of car insurance rates with and without policy discounts. The premium estimates are based on a male driver, no claims, a clean driving record, Ohio state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with safe-driver, marriage, vehicle safety, defensive driving course, passive restraint, and anti-theft discounts applied. With discounts applied, theaverage amount saved on insurance for drivers with bad credit is 28% or $400.
Full coverage versus liability only rates
Reducing premiums for insurance is important to most drivers, and an effective way to lower the cost of insurance for drivers with bad credit is to buy liability only. The illustration below compares insurance prices with liability coverage only compared to full coverage. The prices are based on no accidents or driving violations, $1,000 deductibles, drivers are not married, and no discounts are taken into consideration.
If the expense is averaged for all age categories, full coverage on your policy costs an extra $961 per year more than just buying liability insurance. At some point, about every driver wonders if paying for full coverage is a waste of money. There is no set guideline to stop buying physical damage coverage on your policy, but there is a guideline you can consider. If the yearly cost of full coverage is about 10% or more of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
For example, let's say your vehicle's replacement cost is $6,000 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most you would receive is $5,000 after paying your deductible. If you are paying more than $500 annually to have full coverage, then it may be the right time to buy liability only.
There are some situations where dropping full coverage is not a good plan. If you still owe money on your vehicle, you must maintain physical damage coverage in order to prevent your loan from defaulting. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should not remove full coverage.
Why you should be shopping around
Cincinnati insurance rates are impacted by many factors that may substantially change the price of your policy. Simply turning a year older, becoming a homeowner, or getting a ticket for careless driving may generate price changes that may make certain companies cheaper than before.
Not only may your risk profile change, but companies amend premium rates as needed in order to offset underwriting gains or losses. An unexpected high level of claims may cause additional premium costs, while lower claim expenses can result in cheaper Cincinnati car insurance rates.
For instance, the graph below shows which companies have the cheapest car insurance in Cincinnati, OH for a 35-year-old male driver with no accidents or violations, and a decent credit rating. If we estimate prices based on his current situation, Utica National offers the cheapest car insurance rates in Cincinnati at $820 annually. This is $220 less than the average policy premium paid by Ohio drivers of $1,040. Frankenmuth, Erie, Allied, and USAA are the rest of the best Cincinnati, OH auto insurance companies.
Let's now give the driver in the first chart a claim surcharge, poor credit, and a stop sign violation. Because every insurance company has a proprietary formula for establishing rates, comparing insurance quotes most likely will result in a new list of the cheapest car insurance companies in Cincinnati as shown below.
Merchants Insurance Group now has the cheapest car insurance in Cincinnati, OH with Cincinnati Insurance, Motorists Mutual, Grange Mutual, and General Casualty also being competitive. This example illustrates why it is so important to compare many different companies when trying to find the most economical car insurance quotes for drivers with bad credit.
Insurance rates can be determined by many factors and change frequently, so the most economical option the last time you shopped around may now be one of the more expensive options.