The words “affordable” and “auto insurance” really shouldn’t be used together, specifically when trying to find the best price on coverage for low credit scores. Because it’s not cheap, let’s teach you a few of the factors the can have a considerable influence on auto insurance prices, and find a way to slash the price of the next policy you buy.
The make and model of vehicle you are trying to insure is one of the primary factors when quoting cheaper insurance for low credit scores. Vehicles with average performance, advanced safety features, or a positive history of liability claims will cost less to insure than fast, unsafe models. The table below shows car insurance rates for some of the most affordable vehicles to insure in Michigan.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 2WD | $4,403 |
| Toyota Prius | $4,761 |
| Ford Explorer XLT 2WD | $4,831 |
| Hyundai Elantra GLS Touring Station Wagon | $4,930 |
| Ford Escape Limited 2WD | $5,039 |
| Chevrolet Equinox LS AWD | $5,095 |
| Toyota Corolla S | $5,359 |
| Volkswagen Jetta SE 4-Dr Sedan | $5,453 |
| Chevrolet Silverado 2500HD LTZ Crew Cab 4WD | $5,461 |
| Toyota Tacoma 4WD | $5,528 |
| Honda Accord EX 2-Dr Coupe | $5,726 |
| Ford Focus SE 4-Dr Sedan | $5,734 |
| Toyota RAV4 2WD | $5,834 |
| Chevrolet Malibu LT | $5,947 |
| Nissan Altima 3.5 SR 2-Dr Coupe | $6,084 |
| Ford Edge Sport 2WD | $6,140 |
| Toyota Camry SE | $6,146 |
| Honda Odyssey EX-L W/Rear Entertainment | $6,140 |
| Chevrolet Silverado LS Regular Cab 2WD | $6,235 |
| Jeep Grand Cherokee Laredo 2WD | $6,239 |
| Dodge Grand Caravan Hero | $6,249 |
| Ford Fusion S 4-Dr Sedan | $6,239 |
| GMC Sierra 2500HD SLE Extended Cab 4WD | $6,253 |
| Find Cheaper Rates Go | |
Data rating is based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include multi-policy, claim-free, multi-vehicle, homeowner, and safe-driver. Price information does not factor in the specific area where the vehicle is garaged which can change coverage rates greatly.
Looking at the data, models like the Honda CR-V, Toyota Prius, Ford Explorer, Hyundai Elantra, and Ford Escape are most likely going to be the cheaper vehicles to insure for bad credit.
Finding out which company quotes the most affordable car insurance rates for low credit scores may require a little more effort than just picking a company at random. Each insurance company has a different formula to determine premium rates, so let’s examine the lowest cost car insurance companies in Detroit.
Find Cheaper Car Insurance in Michigan
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $949 |
| 2 | GEICO | $1,023 |
| 3 | Safeco | $1,069 |
| 4 | MetLife | $1,310 |
| 5 | Chubb | $1,428 |
| 6 | Pioneer State Mutual | $1,444 |
| 7 | MEEMIC | $1,450 |
| 8 | Hastings Mutual | $1,627 |
| 9 | Frankenmuth | $1,645 |
| 10 | Auto-Owners | $1,702 |
| 11 | SECURA | $1,778 |
| 12 | Progressive | $1,866 |
| 13 | Wolverine Mutual | $2,191 |
| 14 | Allied | $2,263 |
| 15 | Allmerica | $2,316 |
| 16 | Grange Mutual | $2,322 |
| 17 | Hanover | $2,399 |
| 18 | Auto Club Group | $2,416 |
| 19 | Nationwide | $2,541 |
| 20 | Farm Bureau | $2,599 |
| Get a Custom Quote Go | ||
USAA has some of the most affordable car insurance rates in Detroit at around $949 each year. GEICO, Safeco, MetLife, and Chubb are also some of the more affordable Detroit, MI insurance companies.
As shown in the table above, if you currently have coverage with MetLife and switched to USAA, you could earn annual savings of about $361. Policyholders with Chubb may save as much as $479 a year, and Pioneer State Mutual policyholders might see rate reductions of $495 a year.
If you want to see how much you could save, click here or click several companies below for low rates.
Understand that those policy prices are averages across all drivers and vehicles in Michigan and and are not figured with a specific vehicle garaging location for low credit scores. So the company that has the cheapest price for you may not even be in the list above. That points out the importance of why you need to quote rates from many companies using your own driver information and specific vehicle type.
How accidents and tickets impact rates
The easiest way to find affordable car insurance prices for bad credit is to pay attention while driving and avoid getting tickets or having accidents. The diagram below demonstrates how traffic citations and at-fault claims can drive up car insurance costs for different age categories. The premiums are based on a married female driver, comp and collision included, $250 deductibles, and no discounts are factored in.
In the previous chart, the average cost of a car insurance policy per year with no violations or accidents is $3,694. Get one speeding ticket and the average cost surges to $4,310, an increase of $616 each year. Next add two accidents along with the one speeding ticket and the yearly cost of car insurance for low credit scores jumps again to an average of $9,663. That’s an increase of $5,969, or $497 per month, just for not driving attentively!
Discounts on Detroit auto insurance rates
Insurance providers that offer cheap quotes for low credit scores could also offer policy discounts that can lower rates by as much as 40% or more if you meet specific eligibility requirements. A few popular companies and a partial list of their discounts include:
- Progressive may offer discounts for continuous coverage, good student, homeowner, online quote discount, online signing, multi-policy, and multi-vehicle.
- AAA offers discounts for good student, education and occupation, good driver, multi-policy, multi-car, and AAA membership discount.
- Farmers Insurance includes discounts for switch companies, good student, pay in full, early shopping, teen driver, and mature driver.
- GEICO policyholders can earn discounts including multi-vehicle, seat belt use, good student, military active duty, anti-theft, and air bags.
- Esurance has discounts for anti-lock brakes, emergency road assistance, defensive driver, online shopper, and homeowner.
- SAFECO offers discounts including multi-car, anti-lock brakes, drive less, teen safety rewards, and anti-theft.
- State Farm discounts include multiple autos, accident-free, passive restraint, good driver, defensive driving training, and anti-theft.
The example below shows the comparison of car insurance costs with and without discounts applied to the policy rates. The costs are based on a female driver, a clean driving record, no claims, Michigan state minimum liability limits, comprehensive and collision coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with multiple vehicle, anti-theft, defensive driving course, marriage, multiple policy, and passive restraint discounts applied. When these discounts are applied to the policy premium, the average savings per year on car insurance for low credit scores is 28% or $1,034.
Here’s why price comparisons are so important
Detroit car insurance rates are calculated based on many things which can substantially decrease or increase the policy premium. Turning one year older, marrying your spouse, or having a fender bender can trigger rate changes resulting in some rates now being cheaper than competitors.
Not only may your risk profile change, but auto insurance companies modify rates as needed in order to remain profitable. A period of higher than normal claims can cause increased policy costs, while profitable underwriting can produce cheaper Detroit car insurance rates.
For instance, the bar chart below shows which companies have the cheapest car insurance in Detroit, MI for a 40-year-old female driver with no violations or accidents, and good financial standing. Based on her current rating profile, USAA might quote the most affordable car insurance rates in Detroit at $2,302 a year. This is $91 less than the average premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are the remaining cheapest Detroit, MI auto insurance companies.
Now let’s give the driver in the first example some claims, poor credit, and a speeding ticket. Because every insurance company uses their own formula to establish rates, analyzing rate quotes could result in a different set of the cheapest companies as shown below.
MEEMIC now has the lowest price on auto insurance in Detroit with Safeco, GEICO, USAA, and Hastings Mutual now being in the top five. This example demonstrates why it is critical to compare rates when trying to get cheap car insurance quotes for low credit scores. Rates consist of many different factors and can change substantially, so the most economical option three years ago may now be one of the higher cost companies.