The words “low-cost” and “auto insurance” probably shouldn’t be used in the same sentence, in particular when looking for the best insurance rates for drivers with bad credit. In an attempt to save some money, let’s open your eyes to a few of the factors that have an impact on insurance rates, and find a way to lower the cost of your next policy.
The vehicle model that is being insured is a large factor when comparing the lowest-priced coverage for drivers with bad credit. Vehicles with higher performance characteristics, poor passenger safety features, or a high likelihood of having liability claims will cost more to insure than safer, lower-performance models.
The next table ranks insurance prices for some of the more affordable vehicles to insure in Indiana.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Explorer XLT AWD | $1,189 |
| Ford F-150 XL Regular Cab 4WD | $1,194 |
| Ford Escape XLS 4WD | $1,218 |
| Ford Focus SE 4-Dr Sedan | $1,232 |
| GMC Sierra SLE Regular Cab 2WD | $1,255 |
| Jeep Grand Cherokee Laredo 4WD | $1,263 |
| Toyota RAV4 Sport 4WD | $1,255 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $1,276 |
| Dodge Grand Caravan Crew | $1,278 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $1,286 |
| Honda CR-V LX 4WD | $1,299 |
| Hyundai Elantra SE Touring Station Wagon | $1,318 |
| Nissan Rogue SL 2WD | $1,346 |
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Prices based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include multi-vehicle, multi-policy, homeowner, claim-free, and safe-driver. Price estimates do not factor in the specific area where the vehicle is garaged which can impact coverage rates greatly.
Looking at the rates, models like the Ford Explorer, Ford F-150, Ford Escape, Ford Focus, and GMC Sierra will be some of the cheapest vehicles to insure for people with poor credit. The cost of a car insurance policy will be more expensive because there is more claim risk for drivers with bad credit, but in general those makes and models will most likely have the lowest insurance rates compared to all other vehicles.
For people with poor credit, one of the big criteria that are used to help calculate auto insurance rates is your zip code in Indianapolis. Regions with larger populations or more claims tend to have higher auto insurance costs, whereas areas with less crime or weather claims have the benefit of cheaper car insurance.
The table below lists the most expensive places in Indiana for drivers with bad credit to purchase car insurance in. Indianapolis is listed at #5 with an annual rate of $1,092 for coverage, which is approximately $91 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Gary | $1,360 |
| 2 | Hammond | $1,314 |
| 3 | Merrillville | $1,128 |
| 4 | Portage | $1,093 |
| 5 | Indianapolis | $1,092 |
| 6 | New Albany | $1,059 |
| 7 | Lawrence | $1,055 |
| 8 | Jeffersonville | $1,048 |
| 9 | Evansville | $1,045 |
| 10 | Terre Haute | $1,045 |
| 11 | Kokomo | $1,041 |
| 12 | Anderson | $1,001 |
| 13 | Elkhart | $995 |
| 14 | Fort Wayne | $985 |
| 15 | Columbus | $984 |
| 16 | Fishers | $983 |
| 17 | South Bend | $976 |
| 18 | Bloomington | $968 |
| 19 | Mishawaka | $965 |
| 20 | Greenwood | $960 |
| 21 | Noblesville | $958 |
| 22 | Richmond | $935 |
| 23 | Carmel | $929 |
| 24 | Muncie | $927 |
| 25 | Lafayette | $926 |
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Table data uses estimated as specific location information can impact coverage rates greatly.
Comparing quotes for affordable auto insurance is difficult, and deciding which company quotes the lowest-priced car insurance rates for drivers with bad credit requires even more diligence.
Every insurance company has their own process for setting rates, so we’ll go over the most affordable car insurance companies in Indianapolis. We do need to point out that Indianapolis car insurance rates are determined by lots of factors which can substantially change the cost of having a policy. Things like having a birthday, adding a teenager to your policy, or getting caught speeding can trigger changes in premium that may make certain companies more expensive than competitors.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $614 |
| 2 | Cincinnati Insurance | $678 |
| 3 | USAA | $681 |
| 4 | Erie | $733 |
| 5 | Indiana Farmers Mutual | $841 |
| 6 | Western Reserve | $872 |
| 7 | Auto-Owners | $879 |
| 8 | The Hartford | $881 |
| 9 | Nationwide | $930 |
| 10 | Motorists Mutual | $956 |
| 11 | Utica National | $956 |
| 12 | Safeco | $983 |
| 13 | State Farm | $987 |
| 14 | Hastings Mutual | $1,003 |
| 15 | Farmers | $1,033 |
| 16 | Westfield | $1,094 |
| 17 | State Auto | $1,098 |
| 18 | Wolverine Mutual | $1,105 |
| 19 | GEICO | $1,133 |
| 20 | Celina Insurance | $1,135 |
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Travelers generally has some of the lowest car insurance rates in Indianapolis at around $614 annually. This is $626 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are also some of the cheapest Indianapolis, IN car insurance companies.
As depicted above, if you are a customer of Erie and switched to Cincinnati Insurance, you may realize a yearly price reduction of approximately $55. Policyholders with Indiana Farmers Mutual might save as much as $163 a year, and Western Reserve customers might lower prices by up to $194 a year.
To compare your rates to other Indiana insurance companies, click here to start a quote or visit any of the companies below.
It’s important to note that these estimates are averages across all ages of drivers and types of vehicles and are not factoring in a specific zip code for drivers with bad credit. So the insurer that is most affordable for your situation may not even be in the top 36 companies in the list above. That illustrates why you need to get car insurance quotes using your own specific driver and vehicle information.
Types of discounts on Indianapolis auto insurance
Insurance companies that provide policies for drivers with bad credit may also give you discounts that can reduce rates by 35% or more if you qualify for them. The best car insurance companies and a partial list of their discounts are included below.
- GEICO has savings for emergency military deployment, multi-vehicle, federal employee, military active duty, multi-policy, anti-lock brakes, and good student.
- Travelers discounts include multi-policy, hybrid/electric vehicle, student away at school, continuous insurance, and home ownership.
- Farm Bureau policyholders can earn discounts including renewal discount, driver training, multi-policy, multi-vehicle, good student, and safe driver.
- Liberty Mutual offers premium reductions for new graduate, multi-policy, multi-car, preferred payment discount, safety features, newly retired, and new move discount.
- American Family has discounts for early bird, good driver, defensive driver, mySafetyValet, and bundled insurance.
- Progressive includes discounts for continuous coverage, multi-policy, online quote discount, multi-vehicle, online signing, good student, and homeowner.
The example below visualizes the comparison of car insurance costs with and without some available policy discounts. The prices are based on a male driver, no accidents, no driving violations, Indiana state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with homeowner, defensive driving course, multiple policy, anti-theft, multiple vehicle, and vehicle safety discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on car insurance for drivers with bad credit is 28% or $354.
Difference between full coverage and liability only rates
Saving money on car insurance should be important to most vehicle owners, and one common way to save on the cost of insurance for drivers with bad credit is to only buy liability insurance. The illustration below shows the difference between insurance costs with full coverage compared to only the Indiana minimum liability coverage. The price estimates are based on no claims or driving violations, $250 deductibles, single marital status, and no other discounts are factored in.
Averaged for all ages 20 through 70, comprehensive and collision coverage on your policy costs $1,635 per year more than just insuring for liability. Many people question if physical damage coverage is worth the money. There is no definitive rule for phasing out physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
There are some conditions where removing full coverage is not in your best interest. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage in order to keep the loan. Also, if you don’t have enough money to buy a different vehicle if your current one is in an accident, you should not opt for liability only.
How to find cheaper insurance for drivers with bad credit
The list below summarizes a few money-saving suggestions that can help drivers locate cheaper coverage.
- Avoid at-fault accidents and claims
- Buying car and homeowners insurance together can save money
- Speeding tickets and other violations increase rates
- Earn a discount by not filing claims
- Vehicles with good safety ratings have lower liability rates
- Shop around and save
The last item on the list is extraordinarily significant, as we hit on in this piece. Coverage rates in Indianapolis can be adjusted at any time, so don’t be afraid to buy a policy from a new company if you can find a cheaper rate.
Brand loyalty is great, but we do not recommend it if that dedication is costing money that could be going to better use. It takes less than five minutes to shop around and find cheaper insurance for drivers with bad credit.
If you have questions and prefer to get some help when comparing insurance rates for drivers with bad credit, the agents below can most likely answer your questions and help you decide which auto insurance policy would work best for you.
To locate an Indianapolis auto insurance agent close to you, click the button below the list.
- Walker and Associates Insurance
360 Gradle Dr – Carmel, IN 46032 – (317) 848-4400 - Tia Walker – State Farm Insurance Agent
2169 Glebe St #100a – Carmel, IN 46032 – (317) 890-1200 - Dalessandro Agency Inc.
4255 Lafayette Rd – Indianapolis, IN 46254 – (317) 290-2055 - McClain Matthews Insurance
6329 Hollister Dr – Indianapolis, IN 46224 – (317) 298-7500 - Bill Hill – State Farm Insurance Agent
7423 E 82nd St – Indianapolis, IN 46256 – (317) 849-4119