The words “affordable” and “insurance” really shouldn’t be used together, specifically when you are searching for the best insurance rates for drivers with bad credit. Let’s teach you a few of the factors that significantly impact auto insurance rates, and come up with some ideas to take a little off your next policy.
For people with poor credit, one of the big things that determine car insurance rates is your address. Regions with more people or even just more weather-related claims tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims have the enjoyment of a little cheaper coverage.
The following table rates the most costly cities in Massachusetts for drivers with bad credit in which to buy car insurance. Boston comes in at #7 with a yearly cost of $1,752 for coverage, which is approximately $146 each month.
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Rate information is estimated as specific location information can revise rates greatly.
The vehicle to be insured is a large factor when shopping for the best coverage for drivers with bad credit. Vehicles with lower acceleration and performance, modern passenger safety features, or a low likelihood of having liability claims will cost less to insure than adrenaline junky models.
The information below showcases insurance costs for a handful of the cheaper automobiles to insure.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Ford Explorer XLT AWD||$1,607|
|Honda CR-V EX 4WD||$1,610|
|Ford Escape XLT 4WD||$1,619|
|Hyundai Elantra GLS Touring Station Wagon||$1,621|
|Volkswagen Jetta S 4-Dr Sedan||$1,699|
|Toyota Camry LE||$1,704|
|Ford F-150 STX Regular Cab 2WD||$1,723|
|Toyota Tacoma Double Cab 4WD||$1,731|
|Ford Edge SE 2WD||$1,785|
|GMC Sierra SLT Crew Cab 2WD||$1,823|
|Ford Fusion SE 4-Dr Sedan||$1,831|
|Jeep Wrangler Sahara 4WD 2-Dr||$1,829|
|GMC Sierra 3500HD SLE Crew Cab 2WD||$1,856|
|Ford Focus SE 4-Dr Sedan||$1,874|
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Premium data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Massachusetts minimum liability limits. Discounts applied include homeowner, multi-policy, claim-free, multi-vehicle, and safe-driver. Information does not factor in Boston, MA location which can change prices noticeably.
Based upon the table data, you can conclude that cars like the Toyota Prius, Ford Explorer, Honda CR-V, and Ford Escape will definitely be some of the less-costly vehicles to insure for people with poor credit. Rates will be higher anyway because of the fact that there is more liability risk for drivers with bad credit, but overall those models will have the least expensive rates compared to all other vehicles.
Full coverage rates compared to liability only
Reducing the cost of car insurance is probably important to most vehicle owners, and one easy way to lower the cost of insurance for drivers with bad credit is to only buy liability insurance. The diagram below compares auto insurance costs when comparing full coverage to liability only. The rates are based on no claims or driving violations, $250 deductibles, drivers are not married, and no discounts are taken into consideration.
Averaged for all age groups, physical damage coverage on your policy costs an extra $1,941 per year more than just insuring for liability. That amount may make you wonder if paying for full coverage is a waste of money. There is no exact rule to stop buying full coverage on your policy, but there is a guideline you can consider. If the yearly cost for physical damage coverage is 10% or more of the vehicle’s replacement cost less your deductible, the it may be a good time to stop paying for full coverage.
The illustration below demonstrates how deductible levels can change insurance rates when researching cheap insurance for drivers with bad credit. The information is based on a married female driver, comprehensive and collision coverage, and no discounts are applied to the premium.
The chart above illustrates that a 50-year-old driver could save $318 a year by switching from a $100 deductible to a $500 deductible, or save $480 by selecting a $1,000 deductible. Even younger drivers, such as the Age 20 example, can cut as much as $788 annually just by choosing larger deductibles.
When using a larger deductible, it is important to have additional funds in a savings account to enable you to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Why you should shop around
Boston car insurance rates are determined by lots of factors which can substantially decrease or increase the price you have to pay. Simply having another birthday, moving across town, or getting a driving violation can trigger rate changes that can now make some companies cheaper than others. Not only that, but companies change premium rates every year or even multiple times each year in order to remain profitable. A period of increased losses can cause higher prices, while a better loss history can produce lower-priced Boston car insurance rates.
To help illustrate this point, the graph below demonstrates which company has the cheapest car insurance in Boston, MA for a 40-year-old male driver with no violations or accidents, and good credit. If we estimate prices based on his current risk factors, State Farm quotes the most affordable car insurance rates in Boston at $961 a year. This is $274 less than the average price paid by Massachusetts drivers of $1,235. National Grange Mutual, GEICO, OneBeacon, and Commerce Group are also included in the top five cheapest Boston, MA auto insurance companies.
In this next rate comparison, we will give the driver in the first example a chargeable accident, poor credit, and a few traffic violations. Due to the fact that each insurance company uses their own calculation for filing rates in each state, analyzing rates could result in a substantially altered list of companies as shown below.
Arbella now has the cheapest auto insurance in Boston with Norfolk and Dedham, USAA, Amica, and National Grange Mutual now being in the top five. This shows why it is critical to compare lots of rates to find the cheapest insurance rates for drivers with bad credit.
Prices consist of many factors and change frequently, so the cheapest option when you bought your policy may now be wasting a lot of money.
If you aren’t sure which coverage to buy and prefer to get some professional input when buying car insurance for people with poor credit, the professional agents shown below can probably aid you in deciding which insurance coverage will be best for you.
To find an agent near you, click the button at the bottom.
- Spataro and Bellino Insurance Agency
156 Maverick St – East Boston, MA 02128 – (617) 567-6558
- Security Insurance Agency, Inc
313 Washington St – Brookline, MA 02445 – (617) 739-2886
- Metro Boston Insurance Agency
78 Bennington St – Boston, MA 02128 – (617) 561-3191