Wouldn’t it be excellent if we could tell you instantly that one perfect company that has the best insurance prices for low credit scores? Unfortunately, it’s just not that easy, as there are a whole slew of unknown aspects such as whether or not you have had gaps between policies, if you have any tickets or accidents, and the crime level of your neighborhood, that all impact the price you pay. The information below covers some of these factors and hopefully give you enough understanding to have a good beginning to your search for cheaper coverage.
The type of vehicle requiring insurance is a large consideration in finding the best cheap auto insurance for low credit scores. Vehicles with lower acceleration and performance, excellent safety ratings, or a low likelihood of having liability claims will cost much less to insure than fast, unsafe models.
The next list shows insurance rates for some of the most budget-friendly vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$967|
|Dodge Grand Caravan CV||$1,078|
|Ford Edge Limited 2WD||$1,116|
|Honda CR-V EX-L 2WD||$1,129|
|Toyota RAV4 Limited 4WD||$1,136|
|Ford F-150 FX2 2WD||$1,158|
|Ford Focus SEL 4-Dr Sedan||$1,176|
|Chevrolet Impala LTZ||$1,196|
|Honda Odyssey Touring||$1,218|
|Chevrolet Equinox LTZ AWD||$1,225|
|Honda Accord EX 2-Dr Coupe||$1,281|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,289|
|Toyota Camry Hybrid||$1,303|
|Ford Explorer Limited 2WD||$1,327|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$1,334|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$1,352|
|Toyota Camry XLE||$1,372|
|Chevrolet Malibu LTZ||$1,396|
|GMC Sierra 2500HD SLE Crew Cab 4WD||$1,403|
|Ford Fusion S 4-Dr Sedan||$1,396|
|Jeep Grand Cherokee Laredo 2WD||$1,404|
|Nissan Altima 3.5 SR 4-Dr Sedan||$1,396|
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Data variables include single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include multi-vehicle, homeowner, multi-policy, claim-free, and safe-driver. Estimates do not factor in specific zip code location which can influence insurance rates considerably.
By looking at the data, makes and models like the Ford Escape, Dodge Grand Caravan, Ford Edge, and Honda CR-V will be the less-costly vehicles to insure for bad credit.
Figuring out which companies offer the lowest-priced car insurance rates for low credit scores requires more time in order to find the most economical policy. Each auto insurer has their own process for setting rates, so let’s rank the car insurance companies that tend to have lower prices in Madison, WI.
It’s a good idea to be aware that Madison, WI car insurance rates are based on many factors which can substantially decrease or increase the price you have to pay for coverage. Improving your credit score, moving to a new city, or getting a few speeding tickets can produce rate changes that can cause some rates to be cheaper than others.
Lowest Insurance Price Quotes in Wisconsin
|Rank||Company||Cost Per Year|
|5||Rural Mutual Insurance||$756|
|11||West Bend Mutual||$899|
|14||Auto Club Group||$939|
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USAA may offer some of the best car insurance rates in Madison at around $598 a year. Partners Mutual, Erie, Rockford Mutual, and Rural Mutual Insurance also are some of the cheapest Madison, WI insurance companies.
As shown above, if you are insured with Rural Mutual Insurance and switched to Partners Mutual, you could earn a yearly savings of approximately $142. Policyholders with Integrity Mutual may save as much as $148 a year, and Pekin Insurance customers might lower prices by $154 a year.
Remember that these premium estimates are averaged across all types of drivers and the different vehicles they drive and do not take into consideration an exact zip code location for low credit scores. So the insurer that has the cheapest price for you may not even be in the top 30 companies shown above. That helps illustrate why you need to quote rates from many companies using your own individual information.
One of the many factors that determine the amount you pay for auto insurance is where you live. Areas with more people or more claims tend to have more expensive auto insurance rates, whereas areas with lower crime rates and fewer weather claims have the benefit of cheaper car insurance.
The information below lists the most costly cities in Wisconsin for low credit scores to purchase a policy in. Madison shows up at #15 with the yearly price of $1,040 for the average policy, which is approximately $87 per month.
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Annual rates are approximated as the vehicle garaging location can impact coverage rates significantly.
How to get discounts on Madison insurance rates
Auto insurance companies that sell policies for low credit scores may also offer discounts that may potentially lower prices by as much as 30% if you meet certain criteria. A list of companies and their possible discounts are outlined below.
- State Farm offers premium reductions for Drive Safe & Save, passive restraint, good driver, Steer Clear safe driver discount, and multiple autos.
- Nationwide may have discounts that include accident-free, defensive driving, good student, business or organization, and family plan.
- GEICO has discounts for driver training, federal employee, daytime running lights, good student, and multi-policy.
- AAA offers discounts for AAA membership discount, multi-policy, multi-car, good student, good driver, pay-in-full, and education and occupation.
- 21st Century includes discounts for theft prevention, early bird, anti-lock brakes, air bags, good student, and driver training.
- The Hartford policyholders can earn discounts including anti-theft, good student, air bag, driver training, vehicle fuel type, and bundle.
The illustration below compares insurance prices with and without discounts applied. The rate quotes are based on a male driver, a clean driving record, no claims, Wisconsin state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with safe-driver, anti-theft, claim-free, multiple vehicle, marriage, and multiple policy discounts applied. When discounts are factored in, theaverage yearly reduction on car insurance for low credit scores is 27% or $334.
Irresponsible driving raises your rates
The recommended way to get the most affordable car insurance prices for bad credit is to be a careful driver and avoid getting tickets or having accidents. The information below shows how traffic citations and at-fault collisions can raise car insurance costs for different age groups. The costs are based on a married male driver, full coverage, $1,000 deductibles, and no discounts are applied.
In the prior example, the average cost of a car insurance policy in Wisconsin per year with no accidents or violations is $1,100. Get two speeding tickets and the average cost jumps to $1,509, an increase of $409 each year. Now throw in one accident along with the two speeding tickets and the annual cost of car insurance for low credit scores jumps again to an average of $1,931. That’s an increase of $830, or $69 per month, just for not driving attentively!
The illustration below illustrates how your choice of deductibles can affect insurance prices when searching for cheap insurance for low credit scores. The costs are based on a single male driver, full physical damage coverage, and no additional discounts are factored in.
A 30-year-old driver could cut expenses by $214 a year by increasing from a $100 deductible up to a $500 deductible, or save $322 by using a $1,000 deductible. Even younger insureds, such as the 20-year-old chart data, could drop their prices as much as $622 or even more just by using higher deductibles.
If you do decide to increase your deductibles, it will now be necessary to have plenty of discretionary funds to be able to pay the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Why are you paying too much for car insurance?
Madison car insurance rates are calculated based on many things that will increase or decrease the price of coverage. Improving your credit rating, adding a teenager to your policy, or getting a driving violation may cause policy rate changes that can now make some companies more affordable than before.
Also, insurers amend pricing at least once a year to adjust for unexpected claims or profits. Larger than normal claims may cause increased rates, while lower claim expenses may produce more affordable Madison car insurance rates.
For instance, the chart below demonstrates which company has the cheapest car insurance in Madison, WI for a 30-year-old female driver with no prior accidents, a clean driving record, and good financial standing. When quoting prices based on her current situation, USAA might quote the most affordable car insurance rates in Madison at $666 annually. This is $495 less than the average policy premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Rural Mutual Insurance are the remainder of the best Madison, WI auto insurance companies.
Now we will pretend the driver from the first rate comparison some claims, poor credit, and an imperfect driving record. Due to the fact that every insurance company has their own formula for establishing rates, comparing rates could now result in a different ranking of the cheapest car insurance companies in Madison as shown below.
Pekin Insurance now has the lowest price in Madison with Integrity Mutual, Western National, Travelers, and Partners Mutual now being in the top five. This shows why it is critical to perform a complete rate comparison when trying to find the best car insurance quotes for low credit scores. Rates consist of many different factors and change frequently, so the most affordable company two years ago may now be quite expensive.