Wouldn’t it be great if we could instantly tell you the exact company that has the most affordable coverage for low credit scores? Unfortunately, it’s just not that easy, as there are a whole bunch of unknown elements such as how experienced of a driver you are, the miles you drive each year, and if you want the added protection of full coverage. In this article, we will cover the different ways to avoid overpaying and should give you a good start to your coverage search.
Comparing rates for cheap insurance is tough enough, and figuring out which company offers the cheapest car insurance rates for low credit scores will take even more perseverance.
Each insurer has their own unique process for determining rates in each state, so first we will examine the car insurance companies that tend to be cheaper in Memphis. It’s a good idea to know that Tennessee car insurance rates are impacted by many things that may substantially change the policy premium. Events such as a birthday, buying a different home, or getting a ticket for running a stop sign can produce rate changes resulting in some rates now being more affordable than the competition.
Cheap Insurance Rates in Tennessee
Utica National may have some of the lowest car insurance rates in Memphis at around $737 per year. This is $591 less than the average policy premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Tennessee Farmers, and Penn National also make the cut as some of the best Memphis, TN car insurance companies.
As shown in the rates above, if you currently buy coverage from Cincinnati Insurance and switched to Utica National, you may realize an annual premium reduction of in the vicinity of $121. Customers with Tennessee Farmers might save as much as $186 a year, and Penn National customers might lower prices by $198 a year.
Be aware that those estimates are averages for all ages of drivers and types of vehicles and do not factor in a specific zip code for low credit scores. So the company that is most affordable for your situation may not even be in the top 30 companies in the list above. That’s why you need to compare rates from multiple companies using your own specific driver information and vehicle.
The type of vehicle driven is probably the largest consideration when trying to find low-priced insurance for low credit scores. Vehicles with limited top-end speed, excellent safety ratings, or a track record of few liability claims will cost significantly less to insure than fast, unsafe models. The table below showcases insurance costs for some of the cheapest vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $1,385 |
| Honda Accord EX-L 4-Dr Sedan | $1,503 |
| Ford Escape XLS 4WD | $1,509 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,520 |
| Dodge Grand Caravan SE | $1,552 |
| Ford Explorer Eddie Bauer 2WD | $1,559 |
| Toyota Camry XLE | $1,724 |
| Hyundai Elantra SE 4-Dr Sedan | $1,732 |
| Toyota Corolla S | $1,724 |
| Toyota Prius | $1,733 |
| Ford Focus SE 4-Dr Sedan | $1,747 |
| Honda Odyssey EX W/Rear Entertainment | $1,753 |
| GMC Sierra SL Crew Cab 4WD | $1,759 |
| Jeep Grand Cherokee SRT-8 4WD | $1,767 |
| Toyota Tacoma Double Cab 4WD | $1,825 |
| Chevrolet Malibu LT | $1,832 |
| Toyota RAV4 4WD | $1,833 |
| Chevrolet Equinox LS 2WD | $1,838 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,871 |
| Ford F-150 Lariat Super Cab 4WD | $1,874 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $1,882 |
| Ford Fusion Sport AWD 4-Dr Sedan | $1,877 |
| Ford Edge Sport AWD | $1,885 |
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Above prices assume married male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include homeowner, safe-driver, multi-policy, multi-vehicle, and claim-free. Price estimates do not factor in specific garaging location which can revise price quotes considerably.
Based on these rates, you can infer that cars like the Honda CR-V, Honda Accord, Ford Escape, and Jeep Wrangler are going to be a few of the cheaper vehicles to insure for bad credit.
For bad credit, one of the more important components that are looked at to help calculate the price you pay for insurance is where your residence is in Memphis. Cities with larger populations or higher claim trends tend to have higher rates, whereas areas with less congestion benefit from lower prices.
The next table rates the highest-priced areas in Tennessee for low credit scores to buy car insurance in. Memphis is listed at #1 with a yearly premium of $1,446 for the average policy, which is approximately $121 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,446 |
| 2 | Bartlett | $1,363 |
| 3 | Collierville | $1,363 |
| 4 | Germantown | $1,320 |
| 5 | Jackson | $1,305 |
| 6 | Columbia | $1,226 |
| 7 | Oak Ridge | $1,223 |
| 8 | Knoxville | $1,218 |
| 9 | Nashville | $1,213 |
| 10 | Clarksville | $1,206 |
| 11 | Maryville | $1,196 |
| 12 | Smyrna | $1,194 |
| 13 | La Vergne | $1,186 |
| 14 | Murfreesboro | $1,183 |
| 15 | Cookeville | $1,171 |
| 16 | Spring Hill | $1,157 |
| 17 | Gallatin | $1,155 |
| 18 | Chattanooga | $1,149 |
| 19 | Brentwood | $1,144 |
| 20 | Franklin | $1,129 |
| 21 | Morristown | $1,125 |
| 22 | Hendersonville | $1,124 |
| 23 | Cleveland | $1,091 |
| 24 | Johnson City | $1,063 |
| 25 | Kingsport | $1,026 |
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Prices are approximated as the specific geographic location can change premiums noticeably.
The illustration below shows how choosing a deductible can impact insurance premiums when getting quotes for cheap insurance for low credit scores. The premiums assume a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
A 30-year-old driver could lower their policy premium by $264 a year by switching from a $100 deductible to a $500 deductible, or save $400 by changing to a $1,000 deductible. Young drivers, such as the 20-year-old example, could potentially save up to $778 or even more by choosing a larger deductible amount.
When increasing deductibles, it is necessary to have additional funds in a savings account to allow you to pay the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Discounts on Memphis car insurance
Insurance providers that sell policies for low credit scores could also offer special discounts that could lower prices by 30% or more if you meet the requirements. A few popular companies and some of their more popular discounts can be read below.
- State Farm may have discounts that include driver’s education, student away at school, Steer Clear safe driver discount, defensive driving training, Drive Safe & Save, good student, and passive restraint.
- GEICO offers discounts including military active duty, defensive driver, five-year accident-free, anti-lock brakes, anti-theft, and emergency military deployment.
- Progressive has discounts for homeowner, online quote discount, online signing, multi-vehicle, and continuous coverage.
- 21st Century discounts include driver training, anti-lock brakes, air bags, teen driver, homeowners, and theft prevention.
- American Family may include discounts for good student, good driver, air bags, bundled insurance, TimeAway discount, accident-free, and defensive driver.
- The Hartford may offer discounts for driver training, air bag, good student, defensive driver, and bundle.
- AAA offers premium reductions for anti-theft, multi-car, good driver, education and occupation, multi-policy, and AAA membership discount.
The diagram below shows the comparison of insurance costs with and without discounts applied to the policy premium. The premiums are based on a male driver, no violations or claims, Tennessee state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows the price with no discounts. The lower bar shows the rates with marriage, multiple vehicle, passive restraint, vehicle safety, safe-driver, and claim-free discounts applied. In this example, theaverage amount saved on car insurance for low credit scores is 27% or $456.
Cost difference between full coverage and liability
Lowering the price of car insurance is important to the majority of vehicle owners, and one of the best ways to find cheaper insurance for low credit scores is to not insure for full coverage. The example below shows the comparison of auto insurance rates when comparing full coverage to liability only. The data is based on no claims or driving citations, $250 deductibles, drivers are single, and no discounts are applied.
If we average all the age groups together, comp and collision coverage costs $2,030 per year more than just buying liability insurance. That brings up the question when is the right time to remove full coverage. There isn’t a written rule to delete full coverage on your policy, but there is a broad guideline. If the annual cost of your full coverage insurance is more than around 10% of the replacement cost minus the deductible, then you may want to consider only buying liability coverage.
There are a few situations where removing full coverage is not a good plan. If you still have a lienholder on your title, you have to keep full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should not opt for liability only.
How to find economical car insurance for low credit scores
The list below details some of the recommended money-saving solutions that can help Memphis drivers get lower-cost coverage.
- Buy a car with high safety ratings
- Improve your credit rating
- Save money by staying claim-free
- Being accident-free can lower rates significantly
- Avoid getting tickets or violations
- Shop around for cheaper prices
The last idea is very necessary, as was discussed in the prior information. Auto insurance prices fluctuate considerably, so drivers shouldn’t be reluctant to change to a new company if a cheaper rate is available.
Being loyal to a particular company is commendable, but it’s not a great idea if your bullheadedness ends up costing you a small fortune. Spend a few minutes and compare rates and find cheaper insurance for low credit scores in Memphis.
If you aren’t sure which coverage to buy and prefer to have some professional guidance when trying to find lower insurance rates for low credit scores, the agents listed below are a good start to provide answers to your questions and help you determine which is the best policy. To locate an agency using an interactive map, click the link after the list or click here to compare prices now.
- Farmers Insurance: Candace Hall
1444 E Shelby Dr #329 – Memphis, TN 38116 – (901) 345-2615 - Zach Jaworski – State Farm Insurance Agent
6060 Primacy Pkwy #221 – Memphis, TN 38119 – (901) 794-3691 - Sylvia Walker – State Farm Insurance Agent
2900 Kirby Pkwy Ste 2 – Memphis, TN 38119 – (901) 794-8848 - Farris Evans Insurance Agency Inc
1568 Union Ave – Memphis, TN 38104 – (901) 274-5424 - Deloris Burrow – State Farm Insurance Agent
3558 Hickory Hill Rd – Memphis, TN 38115 – (901) 373-8052