The words “low-priced” and “auto insurance” really shouldn’t be used in the same sentence, in particular when looking for the lowest insurance rates for drivers with bad credit. To save some money, let’s lead off by showing you some of the factors that have a considerable impact on car insurance rates, and see if we can help you take a little off the next policy you buy.
The make and model of vehicle requiring insurance is one of the biggest factors when comparison shopping for economical insurance for drivers with bad credit. Vehicles with limited top-end speed, excellent safety ratings, or a low likelihood of having liability claims will cost quite a bit less to insure than adrenaline junky models. The next list features coverage rates for a number of the most cost-effective vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $1,520 |
| Ford Escape XLS 4WD | $1,664 |
| Ford Edge SE 2WD | $1,670 |
| Ford Explorer XLT AWD | $1,703 |
| Honda CR-V EX 4WD | $1,713 |
| Jeep Grand Cherokee Laredo 4WD | $1,800 |
| Toyota RAV4 Sport 2WD | $1,807 |
| Chevrolet Malibu Hybrid | $1,800 |
| Toyota Prius | $1,897 |
| Jeep Wrangler Sahara 4WD 2-Dr | $1,931 |
| GMC Sierra 2500HD SLE Crew Cab 4WD | $1,934 |
| Chevrolet Impala LS | $1,944 |
| Volkswagen Jetta 2.0T 4-Dr Sedan | $1,934 |
| Ford Fusion SEL 4-Dr Sedan | $1,941 |
| Dodge Grand Caravan Hero | $1,972 |
| Ford F-150 Lariat Super Cab 4WD | $2,011 |
| Chevrolet Silverado LT Extended Cab 4WD | $2,025 |
| Ford Focus SEL 4-Dr Sedan | $2,042 |
| Toyota Camry Hybrid | $2,061 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $2,072 |
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Prices based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include homeowner, multi-policy, claim-free, safe-driver, and multi-vehicle. Estimates do not factor in Memphis, TN location which can decrease or increase prices significantly.
Based upon these rates, you can conclude that makes and models like the Hyundai Elantra, Ford Escape, Ford Edge, Ford Explorer, and Honda CR-V are likely to be a few of the most economical vehicles to insure for people with poor credit. Car insurance rates will tend to be more expensive anyway because of the fact that there is more inherent risk for drivers with bad credit, but in general those vehicles will probably have the cheapest auto insurance rates compared to other types of vehicles.
One of the more important considerations that help determine the amount you pay for auto insurance is where your residence is in Memphis. Cities with larger populations tend to pay more, whereas areas that tend to be more rural have the benefit of cheaper auto insurance prices.
The illustration below ranks the highest-priced places in Tennessee for drivers with bad credit in which to buy car insurance. Memphis shows up at #1 having an annual price of $1,446 on average, which is around $121 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,446 |
| 2 | Bartlett | $1,405 |
| 3 | Germantown | $1,320 |
| 4 | Collierville | $1,309 |
| 5 | Jackson | $1,305 |
| 6 | Knoxville | $1,230 |
| 7 | Columbia | $1,226 |
| 8 | Oak Ridge | $1,210 |
| 9 | La Vergne | $1,197 |
| 10 | Murfreesboro | $1,194 |
| 11 | Smyrna | $1,194 |
| 12 | Spring Hill | $1,193 |
| 13 | Maryville | $1,172 |
| 14 | Cookeville | $1,171 |
| 15 | Clarksville | $1,170 |
| 16 | Brentwood | $1,168 |
| 17 | Gallatin | $1,167 |
| 18 | Nashville | $1,165 |
| 19 | Morristown | $1,159 |
| 20 | Cleveland | $1,135 |
| 21 | Franklin | $1,129 |
| 22 | Chattanooga | $1,127 |
| 23 | Hendersonville | $1,124 |
| 24 | Johnson City | $1,063 |
| 25 | Kingsport | $1,057 |
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Price information shown is comparative as vehicle location can raise or lower rates substantially.
Types of discounts on Memphis auto insurance
Insurers that sell policies for drivers with bad credit may also offer rate discounts that could lower prices by 30% or more if you qualify. A list of companies and some of the premium reductions they offer are:
- GEICO offers discounts including military active duty, five-year accident-free, daytime running lights, driver training, and air bags.
- Travelers includes discounts for continuous insurance, save driver, early quote, hybrid/electric vehicle, good student, and payment discounts.
- Farm Bureau may have discounts that include multi-vehicle, renewal discount, 55 and retired, good student, safe driver, youthful driver, and multi-policy.
- Liberty Mutual discounts include new move discount, multi-car, new vehicle discount, preferred payment discount, teen driver discount, and new graduate.
- American Family may offer discounts for air bags, good driver, accident-free, defensive driver, TimeAway discount, mySafetyValet, and early bird.
- Progressive offers premium reductions for online signing, continuous coverage, good student, homeowner, and multi-vehicle.
The diagram below shows the comparison of yearly insurance costs with and without discounts. The data is based on a male driver, no violations or claims, Tennessee state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with homeowner, safe-driver, accident-free, claim-free, vehicle safety, and defensive driving course discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on insurance for drivers with bad credit is 27% or $456.
Liability rates compared to full coverage
Saving money when shopping for insurance is probably important to most vehicle owners, and a great way to buy cheaper insurance for drivers with bad credit is to not buy comprehensive and collision coverage. The information below illustrates the difference between yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Tennessee. The data assumes no claims or driving citations, $1,000 deductibles, single marital status, and no discounts are factored in.
If the expense is averaged for all age categories, comp and collision coverage costs $1,217 per year over liability only. That amount may make you wonder if it’s a good idea to buy full coverage. There is no clear-cut rule that is best for determining when to drop comp and collision coverage, but there is a guideline you can use. If the annual cost of having full coverage is about 10% or more of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
There are some circumstances where only buying liability is not financially feasible. If you still have a loan on your vehicle, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should not consider dropping full coverage.
If you wish to have some advice when trying to find the best insurance rates for people with poor credit, the professional agents shown below can help you decide which policy is best.
To find an auto insurance agency close to you, click the link at the bottom.
- GEICO Insurance Agent
420 S Germantown Pkwy #109 – Cordova, TN 38018 – (901) 761-5240 - Farmers Insurance: Calvit Ratcliffe
5865 Ridgeway Center Pkwy #300 – Memphis, TN 38120 – (901) 761-6083 - Nationwide Insurance: Clarence Mosley Jr
4132 Elvis Presley Blvd – Memphis, TN 38116 – (901) 346-2550
More insurance agents in Memphis, TN
How to find low-cost car insurance for drivers with bad credit
The list below shows some of the recommended thrifty suggestions that can help Tennessee drivers locate low-cost coverage.
- Higher credit scores can equal lower rates
- Drive safe vehicles
- Prevent price hikes by avoiding at-fault accidents
- Save money by obeying traffic laws and keeping a clean driving record
- Avoid filing excessive claims
- Keep rates low by shopping around frequently
The last tip in the list is particularly necessary, as was discussed in this article. Prices adjust frequently, so don’t hesitate to buy from a different company if a more affordable rate is found.
Many drivers prefer to stick with one company, but it’s not a good idea if that inflexibility results in costing you a small fortune year after year. Take a few minutes and compare rates to find cheaper insurance for drivers with bad credit in Memphis.