The words “cheap” and “auto insurance” really don’t belong together, specifically when you are searching for the best insurance rates for drivers with bad credit. Because it’s not cheap, let’s learn about some of the things that have a considerable impact on insurance premiums, and find a few ways to reduce the price of the next policy you buy.
Finding reliable, low-cost auto insurance is easier said than done, and deciding which companies have the cheapest insurance rates for drivers with bad credit requires a little more work. Each insurance company has a proprietary formula to determine rates, so first let’s look at the rankings for the insurance companies with the overall best prices in Los Angeles.
It’s important that you understand Los Angeles, CA insurance rates are impacted by many things which can substantially decrease or increase the cost of having a policy. Simply getting older, increasing liability limits, or getting a ticket for careless driving can cause premium changes resulting in some rates now being higher-priced than the competition.
Best Insurance Companies with Bad Credit
|Rank||Company||Cost Per Year|
|Compare Rates Now Go|
USAA may have some of the most affordable car insurance rates in Los Angeles at around $1,121 a year. This is $530 less than the average policy premium paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide also are some of the best Los Angeles, CA insurance companies.
In the above example, if you buy coverage from Century National and switched to USAA, you may see yearly savings of about $69. Policyholders with CSAA might save as much as $77 a year, and Nationwide policyholders might reduce prices by as much as $92 a year.
To find the cheapest coverage for you, click here to get quotes or feel free to get quotes from the companies below.
It’s important to note that these prices are averages for all types of drivers and the different vehicles they drive and are not factoring in a specific zip code for drivers with bad credit. So the insurer that fits your needs best may not even be in the top 24 companies in the list above. That underscores the importance of why you need to compare rates from as many companies as possible using your own driver data and vehicle information.
For people with poor credit, one of the big components that are looked at to help calculate car insurance rates is where you call home. More populated areas are more likely to have higher rates, whereas areas with less crime or weather claims tend to receive cheaper rates.
The next table rates the highest-priced places in California for drivers with bad credit in which to purchase auto insurance. Los Angeles is ranked at #1 with an annual cost of $2,104 for the average policyholder, which is around $175 per month.
|Rank||City||Premium Per Year|
|Find the Best Rates Go|
Table data uses approximated as the vehicle garaging location can modify insurance rates substantially.
The vehicle requiring insurance is one of the main factors in finding the cheapest car insurance for drivers with bad credit. Vehicles with high performance, poor passenger safety features, or high incidents of liability claims will cost much more to insure than more economical and safe models. The next list illustrates auto insurance premiums for some of the most cost-effective automobiles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Hyundai Elantra SE Touring Station Wagon||$2,183|
|Honda CR-V EX 4WD||$2,330|
|Ford Escape Limited 2WD||$2,337|
|Toyota RAV4 Limited 4WD||$2,381|
|Dodge Grand Caravan Hero||$2,386|
|Chevrolet Malibu LS||$2,381|
|Toyota Tacoma Double Cab 4WD||$2,426|
|Ford Explorer XLT 4WD||$2,464|
|Hyundai Sonata GLS 4-Dr Sedan||$2,550|
|Ford Fusion Sport 4-Dr Sedan||$2,553|
|Volkswagen Jetta SE 4-Dr Sedan||$2,559|
|Chevrolet Silverado LS Extended Cab 4WD||$2,608|
|Chevrolet Impala LS||$2,627|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$2,659|
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Data based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include multi-vehicle, safe-driver, homeowner, claim-free, and multi-policy. Rate information does not factor in garaging location in Los Angeles, CA which can increase or decrease insurance rates significantly.
Looking at the numbers, you can figure that models like the Hyundai Elantra, Honda CR-V, Ford Escape, Toyota RAV4, and Dodge Grand Caravan will definitely be some of the most budget-friendly vehicles to insure for people with poor credit. The price of auto insurance will trend higher just due to the fact that there is more exposure for drivers with bad credit, but in general those models will most likely have the cheapest car insurance rates possible.
Does full coverage make sense?
Paying less for insurance is probably important to most people, and one way to pay less for insurance for drivers with bad credit is to not buy full coverage. The chart below shows the comparison of insurance costs with and without physical damage coverage. The data is based on no violations or claims, $1,000 deductibles, drivers are not married, and no additional discounts are factored in.
If averaged out across all ages, full coverage on your policy costs $1,849 per year more than just insuring for liability. That touches on the question if buying full coverage is worth the money. There isn’t a written rule to exclude physical damage insurance, but there is a guideline you can consider. If the yearly cost for physical damage coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s say your vehicle’s replacement value is $4,000 and you have $1,000 deductibles. If your vehicle is severely damaged, the most your company would pay you is $3,000 after you pay the deductible. If you are paying over $300 annually for comprehensive and collision coverage, then it’s probably a good time to buy liability coverage only.
Discount Los Angeles car insurance
Car insurance companies that provide policies for drivers with bad credit could also offer special discounts that could lower prices by as much as 25% or more if you meet specific eligibility requirements. A list of companies and a summarized list of policyholder discounts are outlined below.
- State Farm offers discounts including good driver, student away at school, defensive driving training, multiple autos, multiple policy, accident-free, and safe vehicle.
- GEICO policyholders can earn discounts including anti-lock brakes, federal employee, membership and employees, defensive driver, five-year accident-free, and driver training.
- Liberty Mutual offers premium reductions for new move discount, preferred payment discount, hybrid vehicle, teen driver discount, multi-policy, and new graduate.
- The Hartford has discounts for vehicle fuel type, air bag, bundle, anti-theft, and defensive driver.
- MetLife may include discounts for multi-policy, accident-free, good driver, good student, and defensive driver.
- Progressive has savings for online signing, online quote discount, multi-policy, homeowner, and multi-vehicle.
The information below visualizes the comparison of car insurance costs with and without discounts applied to the policy rates. The premiums are based on a female driver, no claims or driving violations, California 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 anti-theft, accident-free, multiple policy, vehicle safety, multiple vehicle, and passive restraint discounts applied. When drivers qualify for the discounts, the average savings per year on insurance for drivers with bad credit is 28% or $738.
The illustration below highlights how deductible selection can affect insurance premiums when searching for cheap insurance for drivers with bad credit. Data assumes a married female driver, comp and collision included, and no discounts are applied to the premium.
The data above shows that a 40-year-old driver could lower their car insurance rates by $360 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $544 by switching to a $1,000 deductible. Youthful drivers, like the 20-year-old category, have the ability to save as much as $896 or even more by selecting a higher deductible. When insureds make the decision to increase the deductibles on their policy, it will be necessary to have enough savings to pay the extra out-of-pocket expense that deters many people from opting for higher deductibles.
How to find budget-friendly car insurance for drivers with bad credit
Lowering your rates is not difficult, and here are some of the recommended thrifty ideas that can help California drivers buy cheaper coverage.
- Avoid filing excessive claims
- Higher credit scores can equal lower rates
- Increase deductibles to save money
- Do not get traffic violations
- Bundle home or renters insurance to earn a discount on car insurance
- Avoid accidents and claims
- Shop around for cheaper rates regularly
The final tip is notably crucial, as we hit on in the prior information. Coverage rates can change in a short period of time, so don’t hesitate to buy a different policy if you can find a cheaper rate.
Many drivers tend to have loyalty to a certain company, but it’s not a great idea if that devotion results in you overpaying a lot of money every month. In just a few minutes you could compare prices and find cheaper auto insurance for drivers with bad credit in Los Angeles.
If you aren’t sure which coverage you need and prefer to get some guidance when trying to find lower insurance rates for drivers with bad credit, the agents below are willing to help you determine which auto insurance policy would work best for you.
To locate a Los Angeles insurance agent close to you, click the link after the list.
Lisa Brown – State Farm Insurance Agent
1247 S La Brea Ave – Los Angeles, CA 90019 – (323) 954-9763
Yvonne Solis – State Farm Insurance Agent
1375 Sunset Blvd – Los Angeles, CA 90026 – (213) 202-2800
Patricia Aleman – State Farm Insurance Agent
3222 Glendale Blvd b – Los Angeles, CA 90039 – (323) 644-0900
Anthony Elliot Insurance Agency, Inc.
3349 Cahuenga Blvd W #2 – Los Angeles, CA 90068 – (323) 876-1980
InsurAide Insurance Agency, Inc. (IIA)
1081 Westwood Blvd Suite 218 – Los Angeles, CA 90024 – (310) 208-3548