The make and model of vehicle that is being insured is a large factor when shopping around for cheap auto insurance for low credit scores. Vehicles with high performance engines, poor passenger safety features, or a track record of large liability claims will cost substantially more to insure than safer models. The next table shows coverage costs for the most budget-friendly vehicles to buy insurance for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda Accord EX-L 4-Dr Sedan||$603|
|Honda CR-V EX 4WD||$642|
|Jeep Grand Cherokee Laredo 2WD||$657|
|Toyota RAV4 Sport 2WD||$665|
|Ford Fusion S 4-Dr Sedan||$657|
|Ford Escape Limited 4WD||$662|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$669|
|Ford Explorer Limited AWD||$678|
|Honda Odyssey EX-L||$694|
|GMC Sierra SLE Regular Cab 4WD||$706|
|Ford Edge SEL 2WD||$726|
|Ford Focus SE 4-Dr Sedan||$731|
|Chevrolet Equinox LT 2WD||$741|
|Dodge Grand Caravan Hero||$751|
|Hyundai Sonata Limited 4-Dr Sedan||$754|
|Ford F-150 Lariat Super Cab 2WD||$758|
|Start Your Quote Go|
Prices based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, multi-vehicle, multi-policy, safe-driver, and homeowner. Table data does not factor in specific location which can increase or decrease premium rates considerably.
Based upon these rates, models like the Honda Accord, Honda CR-V, Jeep Grand Cherokee, and Toyota RAV4 will definitely be the cheapest vehicles to insure for bad credit.
Determining which companies offer the lowest-priced auto insurance rates for low credit scores in Indiana will involve more work in order to find a policy that fits your budget.
Every insurance company has a unique approach for determining prices, so let's rank the auto insurance companies that tend to have lower prices in Indiana.
Find Cheaper Car Insurance in Indiana
|Rank||Company||Cost Per Year|
|5||Indiana Farmers Mutual||$841|
|Quote Your Rates Go|
Travelers quotes some of the best car insurance rates in Indiana at around $620 each year. This is $620 less than the average price paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Indiana Farmers Mutual are also some of the most economical Indiana insurance companies.
In the rate table above, if you currently buy coverage from Erie and switched to USAA, you could realize annual savings of roughly $66. Insureds with Indiana Farmers Mutual could save as much as $174 a year, and The Hartford insureds might reduce prices by as much as $196 a year.
Be aware that those policy rates are averaged for all types of drivers and the different vehicles they drive and and are not calculated with a price decrease for low credit scores. So the car insurance company that has the cheapest rates for you may not even be in the top 36 companies shown above. That underscores the importance of why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
For bad credit, one of the more important things that are looked at to help calculate car insurance rates is where your residence is. Cities with more crime and/or more people like Gary, Merrillville, and Indianapolis will most likely have higher rates, whereas less populated areas profit from lower rates.
The table below rates the priciest cities in Indiana for low credit scores to buy an auto insurance policy in.
|Start a Quote Go|
Price information shown is approximated as the specific garaging location can influence coverage rates noticeably.
Full coverage rates vs. liability-only in Indiana
Finding cheaper auto insurance is probably important to most drivers, and one of the best ways to pay less for insurance for low credit scores in Indiana is to not buy full coverage. The chart below shows the comparison of auto insurance rates when comparing full coverage to liability only. The price estimates are based on no violations or accidents, $1,000 deductibles, marital status is single, and no additional discounts are factored in.
As an average for all age groups, full coverage costs $1,281 per year over and above liability coverage. Lot's of drivers question if buying full coverage is worth the money. There isn't a written rule of when to exclude physical damage coverage, but there is a broad guideline. If the yearly cost of full coverage is about 10% or more of any settlement you would receive from your insurance company, then it may be the right time to buy liability only.
For example, let's say your vehicle's settlement value is $5,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most your company will settle for is $4,500 after paying the physical damage deductible. If premium cost is more than $450 a year for comprehensive and collision coverage, then it's probably a good time to buy liability coverage only.
The example below shows how choosing a deductible can impact annual premium costs when quoting cheap insurance for low credit scores in Indiana. The prices are based on a married female driver, full coverage, and no other discounts are factored in.
A 30-year-old driver could pocket $222 a year by switching from a $100 deductible up to a $500 deductible, or save $334 by switching to a $1,000 deductible. Youthful drivers, like the 20-year-old example, could drop their prices up to $476 each year by using higher deductibles when buying full coverage.
If you do raise deductibles, it will be required to have enough savings set aside to satisfy the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Types of discounts on Indiana car insurance rates
Car insurance companies that sell policies for low credit scores may have price discounts that could reduce prices by as much as 25% or more if you meet specific criteria. A few popular companies and some of the discounts can be found below.
- State Farm discounts include accident-free, good driver, multiple policy, anti-theft, defensive driving training, and good student.
- American Family has discounts for multi-vehicle, good student, TimeAway discount, early bird, air bags, and accident-free.
- GEICO policyholders can earn discounts including multi-vehicle, anti-theft, seat belt use, good student, and five-year accident-free.
- 21st Century has savings for anti-lock brakes, air bags, 55 and older, automatic seat belts, and theft prevention.
- Progressive may include discounts for multi-policy, homeowner, continuous coverage, online quote discount, and online signing.
The diagram below compares insurance costs with and without discounts applied to the policy premium. The data is based on a female driver, no accidents or driving violations, Indiana state minimum liability limits, comp and collision included, and $250 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with marriage, anti-theft, safe-driver, multiple vehicle, multiple policy, and passive restraint discounts applied. When drivers take advantage of discounts, the average savings per year on auto insurance for low credit scores is 28% or $527.
How to find the cheapest car insurance for low credit scores
Lowering your rates is not difficult, and here are many thrifty suggestions that can help you buy low-cost car insurance.
- Accident-free drivers may qualify for discounts
- Do not insure for full coverage
- Do not get traffic citations
- Get cheaper liability coverage by choosing a safer vehicle
- Higher credit ratings may save you money
- Raise your deductibles
- Compare rates once a year for cheaper prices
The final tip is very vital, as was discussed in this write-up. Insurance prices vary greatly, so don't hesitate to change to a new company if a lower price can be found. Having brand loyalty is commendable, but it's not a good idea if it's costing you big bucks every year. Spend a few minutes and compare prices and find cheaper insurance for low credit scores.