For bad credit, one of the big components that determine the amount you pay each year for auto insurance is where you call home. Areas with high crime rates or more dense population tend to have higher rates, whereas areas with less people or fewer weather incidents have the luxury of lower rates.
The table below shows the highest-priced areas in California for low credit scores in which to purchase auto insurance. Los Angeles makes the list at #2 with an annual premium of $2,083 for coverage, which is around $174 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Glendale | $2,142 |
| 2 | Los Angeles | $2,083 |
| 3 | Oakland | $1,738 |
| 4 | Sacramento | $1,703 |
| 5 | San Francisco | $1,693 |
| 6 | San Bernardino | $1,644 |
| 7 | Long Beach | $1,626 |
| 8 | Stockton | $1,603 |
| 9 | Garden Grove | $1,554 |
| 10 | Moreno Valley | $1,536 |
| 11 | Fontana | $1,535 |
| 12 | Santa Clarita | $1,533 |
| 13 | Riverside | $1,527 |
| 14 | Modesto | $1,487 |
| 15 | Fresno | $1,472 |
| 16 | Santa Ana | $1,439 |
| 17 | San Jose | $1,437 |
| 18 | Anaheim | $1,430 |
| 19 | Huntington Beach | $1,374 |
| 20 | Irvine | $1,371 |
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Rate information is approximated as the specific geographic location can influence premium rates noticeably.
The make and model of vehicle driven is one of the biggest factors when shopping around for affordable insurance for low credit scores. Vehicles with limited speed and performance, an excellent safety record, or a positive history of liability claims will cost significantly less to insure than adrenaline junky models.
The list below outlines coverage premiums for the most affordable automobiles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $2,006 |
| Hyundai Elantra GLS Touring Station Wagon | $2,201 |
| Honda CR-V EX 4WD | $2,252 |
| Chevrolet Impala LS | $2,332 |
| Volkswagen Jetta SE 2.5 Station Wagon | $2,355 |
| Ford Focus SES 4-Dr Sedan | $2,460 |
| Honda Civic LX-S 4-Dr Sedan | $2,469 |
| Ford F-350 XL Super Cab 2WD | $2,470 |
| Toyota Prius | $2,514 |
| Nissan Rogue SL 2WD | $2,549 |
| Toyota Tacoma 4WD | $2,559 |
| Ford Explorer XLT 4WD | $2,564 |
| Toyota RAV4 Sport 2WD | $2,604 |
| Ford Edge SEL 2WD | $2,626 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $2,671 |
| Jeep Grand Cherokee Laredo 4WD | $2,684 |
| Kia Optima SX | $2,722 |
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Cost estimates assume single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, claim-free, multi-vehicle, multi-policy, and homeowner. Premium amounts do not factor in zip code location which can revise premium rates significantly.
Looking at the numbers, we can presume that vehicles like the Ford Escape, Hyundai Elantra, Honda CR-V, and Chevrolet Impala should be some of the most budget-friendly vehicles to insure for bad credit.
Finding dependable, low-priced auto insurance is easier said than done, and determining which insurers offer the cheapest insurance rates for low credit scores requires a bit more work.
Every insurance company uses a slightly different approach to determine premium rates, so we’ll go over the lowest cost insurance companies in Los Angeles. It’s important to know that Los Angeles insurance rates are impacted by many factors that may substantially change the price of your policy. This price variability is why drivers need to shop around when trying to get the most budget-friendly car insurance quotes for low credit scores. Insurance rates are determined by many risk factors and change dramatically, so the cheapest option a year ago may now be quite expensive.
Best Cheap Insurance Rates in California
USAA offers some of the lowest car insurance rates in Los Angeles at around $1,143 per year. This is $508 less than the average price paid by California drivers of $1,651. Wawanesa, Century National, Nationwide, and CSAA also are some of the cheapest Los Angeles, CA insurance companies.
As the example above demonstrates, if you are a policyholder with Nationwide and switched to Wawanesa, you might see a yearly savings of in the neighborhood of $45. California drivers with CSAA might save as much as $53 a year, and 21st Century policyholders might realize rate reductions of up to $157 a year.
Be aware that those policy rates are averaged across all ages of drivers and types of vehicles and do not factor in a specific zip code for low credit scores. So the insurer that has the lowest price for you may not even be in the top 24 companies shown above. That point stresses why you need to compare rates from as many companies as possible using your own personal information and vehicle type.
Liability only or full coverage
Reducing premiums for insurance should be important to the majority of people, and an effective way to reduce the cost of insurance for low credit scores is to only pay for liability coverage. The chart below shows the difference between annual premium costs with full physical damage coverage compared to only buying the minimum liability limits required in California. The costs are based on no accidents or driving violations, $250 deductibles, marital status is single, and no policy discounts are applied.
If we average the cost for ages 20 through 70, physical damage coverage costs an extra $3,147 per year more than carrying just liability coverage. That is a big expense that brings up the question if paying for full coverage is a waste of money. There is no definitive formula of when to phase out full coverage, but there is a general school of thought. If the annual cost of your full coverage insurance is more than 10% of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
There are some conditions where dropping full coverage is not in your best interest. If you haven’t paid off your loan, you are required to maintain full coverage in order to prevent your loan from defaulting. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should not eliminate full coverage.
Best insurance company in Los Angeles
Insuring your vehicle with the best insurer can be rather challenging considering how many companies sell coverage in California. The information in the lists below can help you select which insurers to look at when comparing rate quotes.
The rankings below are for companies with a nationwide focus, so companies with more of a regional focus are not included in the list. To check rates and find cheaper insurance for low credit scores, simply click here.
Top 10 Large Auto Insurance Providers in Los Angeles Ranked by Customer Service
- AAA of Southern California
- GEICO
- State Farm
- The Hartford
- Mercury Insurance
- The General
- Progressive
- Allstate
- AAA Insurance
- American Family
How to find low-cost car insurance for low credit scores
Lowering your rates is not difficult, and here are some of the better money-saving solutions that can help drivers locate cheap coverage.
- Raise physical damage deductibles
- Improve your credit rating
- Safe vehicles generally have lower rates
- Avoid getting tickets or violations
- Remove physical damage coverage on older vehicles
- Prevent price hikes by avoiding at-fault accidents
- Compare price quotes at least once a year
The last suggestion is especially valuable, as we hit on in the article above. Car insurance rates fluctuate considerably, so you should be ready to buy from a different company if a better rate can be found. Having brand loyalty is commendable, but it isn’t a good idea if it’s costing you money that could be spent on other things. If you have a few minutes, shop around to find cheaper car insurance for low credit scores in Los Angeles.
The professional agents shown below are a good start to provide answers to your questions and help you determine which coverages and limits you need, since some people have coverage questions and would like to get some help when trying to find lower insurance rates for bad credit. It can be time-consuming to find the best rates on your own, so insurance agents can provide you satisfaction knowing your policy gives you adequate protection. To find a Los Angeles insurance agency using an interactive map, click the button at the bottom of the list or click here to compare price quotes now.
- STARC INSURANCE AGENCY,INC
5250 W Century Blvd #426 – Los Angeles, CA 90045 – (888) 400-4004 - Lewis and Lewis Insurance Agency, Inc.
11900 W Olympic Blvd #475 – Los Angeles, CA 90064 – (800) 966-6830 - Public Insurance Agency
10941 W Pico Blvd – Los Angeles, CA 90064 – (310) 234-8600 - Allstate Insurance: Carmina San Jose
628 N Vermont Ave Ste 12 – Los Angeles, CA 90004 – (213) 383-5120 - Laura Mora – State Farm Insurance Agent
5858 N Figueroa St a – Los Angeles, CA 90042 – (323) 478-9346