You have most likely seen the catchy commercials from insurers like Farmers, Allstate, and Liberty Mutual that promise big savings. So you just need to choose the one with the flashiest ad, right?
It’s not quite that easy, unfortunately, as there are a whole slew of unknown elements such as if you are married or single, if you own or rent your home, and what liability limits you need, that all influence how much you pay for auto insurance. This article should teach you a little about the best ways to find cheap auto insurance and will give you a good start in finding the cheapest insurance in Wisconsin.
The vehicle that needs insurance is probably the biggest factor when consumers are trying to find the cheapest car insurance for low income drivers. Vehicles with limited speed and performance, good safety features, or low incidents of liability claims will cost substantially less to insure than fast, unsafe models. The data below presents car insurance premiums for some of the most cost-effective automobiles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford F-150 FX2 Super Cab 2WD||$1,049|
|Hyundai Elantra GLS Touring Station Wagon||$1,057|
|Ford Escape XLS 2WD||$1,065|
|Honda CR-V EX-L 2WD||$1,086|
|Chevrolet Impala LS||$1,088|
|Toyota RAV4 Sport 4WD||$1,110|
|Chevrolet Equinox LS AWD||$1,117|
|Honda Accord EX-L 4-Dr Sedan||$1,114|
|Jeep Grand Cherokee Limited 4WD||$1,188|
|Toyota Corolla XRS||$1,194|
|Volkswagen Jetta SE 4-Dr Sedan||$1,188|
|Ford Focus SE 4-Dr Sedan||$1,194|
|Toyota Tacoma 4WD||$1,190|
|Nissan Rogue S 2WD||$1,197|
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Table data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include multi-vehicle, safe-driver, claim-free, multi-policy, and homeowner. Price estimates do not factor in specific zip code location which can revise premiums significantly.
By looking at the data, you can expect vehicles like the Toyota Prius, Ford F-150, Hyundai Elantra, Ford Escape, and Honda CR-V are a few of the less-costly vehicles to insure for poor drivers.
Locating reasonably-priced auto insurance is difficult, and deciding which companies have the lowest-priced auto insurance rates for low income drivers involves a little more work.
Each auto insurer uses a different method for filing rates in each state, so let’s begin by examining the overall cheapest auto insurance companies in Madison.
Compare Cheap Insurance Quotes in Wisconsin
|Rank||Company||Cost Per Year|
|9||Rural Mutual Insurance||$779|
|11||West Bend Mutual||$899|
|13||Auto Club Group||$939|
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USAA offers some of the lowest car insurance rates in Madison at around $586 a year. This is $575 less than the average premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Integrity Mutual would also be considered some of the more affordable Madison, WI car insurance companies.
In the above rates, if you currently have a policy with Rockford Mutual and switched to USAA, you might see a yearly price reduction of roughly $160. Wisconsin drivers with Integrity Mutual might save as much as $176 a year, and Nationwide policyholders might reduce rates by $182 a year.
Remember that these rates are averaged across all types of insureds and vehicles and and are not calculated with a vehicle location for low income drivers. So the car insurance company that can offer you the best rate may not even be in the top 30 companies in the list above. That points out the importance of why you need to compare rates from multiple companies using your own individual information.
One of the many criteria that are looked at to determine the annual cost of car insurance is where you live in Madison. Cities with more crime and/or more people tend to pay more, whereas more rural areas get the luxury of paying less.
The information below rates the most expensive cities in Wisconsin for low income drivers to purchase car insurance in. Madison is ranked #11 with an annual cost of $1,072 on average, which is around $89 per month.
|22||Fond du Lac||$956|
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Prices are estimated as specific Madison zip code can alter auto insurance rates significantly.
The example below demonstrates how deductibles can impact yearly insurance costs when trying to find cheap insurance for low income drivers. The price estimates are based on a single female driver, full coverage, and no policy discounts are applied.
As shown above, a 40-year-old driver could cut expenses by $216 a year by switching from a $100 deductible up to a $500 deductible, or save $328 by selecting a $1,000 deductible. Young drivers, such as the Age 20 example, could save $552 or more just by choosing higher deductibles when buying full coverage. When using a larger deductible, it will be important to have additional funds in a savings account to enable you to cover the extra out-of-pocket expense that comes with higher deductibles.
Illustration showing the impact of accidents and violations
The easiest way to receive low auto insurance premiums in Madison for poor drivers is to pay attention while driving and avoid accidents and traffic violations. The chart below illustrates how violations and fender-benders can drive up insurance costs for different age categories. The information is based on a single male driver, comprehensive and collision coverage, $1,000 deductibles, and no discounts are taken into consideration.
In the previous example, the average cost of car insurance per year with a clean driving record and no accidents is $974. Receive two speeding tickets and the average cost rises to $1,280, an increase of $305 each year. Then add one accident along with the two speeding tickets and the 12-month cost of auto insurance for low income drivers jumps again to an average of $1,589. That’s an increase of $615, or $51 per month, just for not driving carefully!
The benefit of shopping around
Madison, WI auto insurance rates are based on many factors that can increase the cost of coverage. Simply turning a year older, increasing liability limits, or getting into an accident may prompt premium changes that can make some companies more affordable than before.
Also, insurance companies file new Wisconsin auto insurance rates as often as every three months to adjust for heavy claims or excess profits. Heavy losses may result in additional premium costs, while long-term profits may result in lower-priced Madison car insurance rates.
To illustrate this example, the bar chart below shows the company with the cheapest car insurance in Madison, WI for a 35-year-old male driver with no violations or accidents, and a decent credit rating. If we look at prices based on his current risk profile, USAA might offer the most affordable car insurance rates in Madison at $639 annually. This is $522 less than the average rate paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Nationwide also make the list of the cheapest Madison, WI auto insurance companies.
Now let’s give the driver from the first rate comparison an accident claim, bad credit, and a blemish on his driving record. Due to the fact that each insurance company has a unique formula to establish rates, comparing prices will most likely result in a different set of affordable Madison car insurance companies as shown below.
Integrity Mutual now has the cheapest insurance rate in Madison, WI with Rural Mutual Insurance, Western National, Travelers, and Partners Mutual now being in the top five. This example demonstrates why Madison drivers need to compare as many rates as possible when trying to find the lowest insurance quotes for low income drivers. Auto insurance prices are influenced by many things and can change without notice, so the most economical option when you last compared rates may now be costing you a lot of money.