Finding good, low-priced car insurance is not easy, and figuring out which company has the cheapest auto insurance rates for drivers with bad credit involves even more shopping around. Each insurance company uses different criteria to set premium rates, so first we will examine the auto insurance companies with the most affordable rates in Texas.
It’s important that you understand Texas auto insurance rates are determined by lots of factors that can increase the cost of your policy. Price variation is why consumers need to take the time to compare rates to get the best car insurance rates for drivers with bad credit. Insurance prices can be determined by many risk factors and can change without notice, so the cheapest company the last time you checked may now be an over-priced policy.
Best Car Insurance Prices with Bad Credit
Travelers normally has some of the most affordable car insurance rates in Plano at around $1,021 a year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also some of the cheapest Plano, TX car insurance companies.
In the above rates, if you are a customer of Germania Mutual and switched to USAA, you may see an annual premium reduction of around $127. Policyholders with California Casualty may save as much as $265 a year, and Esurance customers might reduce prices by as much as $304 a year.
Be aware that those estimates are averages across all drivers and vehicles in Texas and do not take into consideration a specific location for drivers with bad credit. So the company that fits your situation best may not even be in the top 23 companies in the list above. That point stresses why you need to quote rates from many companies using your own specific driver information and vehicle.
The type of vehicle to be insured is a large consideration in finding cheaper insurance for drivers with bad credit. Vehicles with reasonable performance levels, modern passenger safety features, or a low likelihood of having liability claims will cost much less to insure than higher performance models.
The list below ranks coverage prices for a selection of the cheaper vehicles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Volkswagen Jetta S 2.5 Station Wagon||$907|
|Ford Explorer XLT 4WD||$939|
|Honda CR-V LX 2WD||$957|
|Ford Escape XLS 4WD||$967|
|Honda Odyssey EX||$972|
|Chevrolet Silverado LS Extended Cab 4WD||$990|
|Honda Accord LX 4-Dr Sedan||$1,028|
|Hyundai Elantra GLS 4-Dr Sedan||$1,042|
|Jeep Grand Cherokee Limited 4WD||$1,061|
|Ford Focus SE 2-Dr Coupe||$1,113|
|Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD||$1,134|
|Chevrolet Malibu LS||$1,138|
|Chevrolet Impala LT||$1,145|
|Jeep Wrangler Sahara 4WD 2-Dr||$1,150|
|Dodge Grand Caravan Crew||$1,159|
|Toyota Tacoma Double Cab 4WD||$1,164|
|Ford F-150 STX Super Cab 4WD||$1,175|
|Ford Edge Limited 2WD||$1,190|
|Toyota Corolla XLE||$1,196|
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Price data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, multi-policy, claim-free, safe-driver, and multi-vehicle. Premium costs do not factor in vehicle location which can influence rates considerably.
Based upon the table data, we can infer that models like the Volkswagen Jetta, Ford Explorer, and Honda CR-V will definitely be some of the cheaper vehicles to insure for people with poor credit. The cost of auto insurance will tend to be more expensive because there is more claim exposure for drivers with bad credit, but generally speaking those makes and models will have the cheapest auto insurance rates compared to other vehicles.
One of the many things that are used to help calculate the cost of insurance is where you call home. Larger areas tend to have higher auto insurance costs, whereas more rural areas have the benefit of cheaper auto insurance prices.
The next table ranks the most expensive areas in Texas for drivers with bad credit in which to purchase auto insurance. Plano makes the list at #21 with the yearly price of $1,576 for the average insurance policy, which is about $131 monthly.
|Rank||City||Premium Per Year|
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Prices are approximated as specific Plano zip code can modify premiums significantly.
Discounts on Plano insurance rates
Auto insurance companies that sell policies for drivers with bad credit may additionally offer special discounts that could lower prices by as much as 35% if you meet eligibility requirements. A few of the larger companies and a summarized list of policyholder discounts are detailed below.
- State Farm offers premium reductions for Steer Clear safe driver discount, good student, defensive driving training, good driver, and driver’s education.
- Farmers Insurance may have discounts that include alternative fuel, pay in full, switch companies, early shopping, homeowner, and electronic funds transfer.
- Progressive may offer discounts for good student, online signing, homeowner, multi-policy, continuous coverage, and multi-vehicle.
- GEICO may include discounts for anti-lock brakes, seat belt use, multi-policy, good student, emergency military deployment, membership and employees, and air bags.
- Auto-Owners Insurance has savings for anti-theft, paperless, safe driver, multiple vehicles, student away at school, teen driver, and mature driver.
- The Hartford discounts include anti-theft, vehicle fuel type, defensive driver, good student, and air bag.
- Farm Bureau policyholders can earn discounts including safe driver, renewal discount, multi-vehicle, driver training, multi-policy, and youthful driver.
- USAA offers discounts for driver training, vehicle storage, safe driver, multi-vehicle, and new vehicle.
The illustration below shows the difference between auto insurance rates with and without discounts applied to the rates. The costs are based on a female driver, a clean driving record, no at-fault accidents, Texas state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with claim-free, accident-free, multiple policy, safe-driver, defensive driving course, and passive restraint discounts applied. When discounts are applied, the average savings per year on auto insurance for drivers with bad credit is 28% or $524.
Should you buy full coverage?
Lowering the price of auto insurance should be important to most vehicle owners, and a great way to pay less for insurance for drivers with bad credit is to not buy comprehensive and collision coverage. The illustration below illustrates the difference between yearly insurance costs when comparing full coverage to liability only. The data assumes no accidents or driving violations, $1,000 deductibles, single status, and no discounts are taken into consideration.
As an average, comp and collision coverage costs $1,598 per year over and above liability coverage. That is a big expense that brings up the question if buying full coverage is worth the money. There is no definitive formula of when to drop physical damage insurance, but there is a general guideline you can use. If the yearly cost of full coverage is 10% or more of replacement cost minus your deductible, then it may be the right time to buy liability only.
There are some circumstances where buying only liability insurance is not a good idea. If you still owe money on your vehicle, you must maintain physical damage coverage as part of the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should keep full coverage in place.
The diagram below shows how choosing a deductible can change yearly insurance costs when searching for cheap insurance for drivers with bad credit. The data is based on a married female driver, full physical damage coverage, and no other discounts are factored in.
The chart above illustrates that a 40-year-old driver could save $362 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $546 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, can save up to $900 each year by using a higher deductible.
If you do raise deductibles, it is important to have spare funds to enable you to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
How to find more affordable car insurance for drivers with bad credit
The list below details a few penny-pinching suggestions that can help drivers buy more affordable coverage.
- Bundle car and home insurance and save money
- Vehicles with good safety ratings have lower liability rates
- On older vehicles, drop full coverage
- Drive attentively and avoid accidents
- Better credit rating means better rates
- Comparison shop at least every other year
That last idea is especially necessary, as we pointed out in the article above. Coverage prices can be changed at any time, so don’t be afraid to switch to a new company if a more affordable rate is found.
Loyalty to a specific company is fine, but we do not recommend it if that stubbornness costs you hundreds of dollars a year. Spend a few minutes and shop around and find cheaper insurance for drivers with bad credit in Plano.
If you aren’t sure which coverage you need and prefer to have some advice when comparing insurance rates for drivers with bad credit, the insurance agencies listed below can probably help you decide which car insurance company is the best fit.
To find a Plano insurance agent in your neighborhood, click the button link following the list or click here to compare rates now.
- Brad Salter – State Farm Insurance Agent
8000 Coit Rd #100 – Plano, TX 75025 – (972) 731-0350
- Farmers Insurance – Joseph Qiu
5016 Tennyson Pkwy – Plano, TX 75024 – (972) 781-0808
- Allstate Insurance: John Clements
2500 Dallas Pkwy Ste 150 – Plano, TX 75093 – (972) 312-1800