The words “economical” and “insurance” really should not be used together, in particular when you are shopping around for the cheapest auto insurance for drivers with bad credit. Because it’s not cheap, let’s go over some situations that have an effect on auto insurance premiums, and see if we can help you slash the price of your next policy.
One of the more important considerations that help determine auto insurance rates is where you keep your car in Cleveland. Regions with larger populations or more claims tend to have more expensive car insurance rates, whereas areas that tend to be more rural receive better rates.
The illustration below sorts the most expensive areas in Ohio for drivers with bad credit to buy an auto insurance policy in. Cleveland comes in at #3 with an annual premium of $1,259 on average, which is around $105 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Youngstown | $1,285 |
| 2 | Toledo | $1,267 |
| 3 | Cleveland | $1,259 |
| 4 | Columbus | $1,235 |
| 5 | Cincinnati | $1,210 |
| 6 | Cleveland Heights | $1,178 |
| 7 | Euclid | $1,175 |
| 8 | Hamilton | $1,146 |
| 9 | Akron | $1,135 |
| 10 | Dayton | $1,120 |
| 11 | Springfield | $1,105 |
| 12 | Canton | $1,091 |
| 13 | Lakewood | $1,073 |
| 14 | Fairfield | $1,063 |
| 15 | Middletown | $1,055 |
| 16 | Newark | $1,053 |
| 17 | Kettering | $1,051 |
| 18 | Parma | $1,037 |
| 19 | Mansfield | $1,032 |
| 20 | Strongsville | $1,031 |
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Rate information is estimated as zip code location can influence auto insurance rates noticeably.
Finding budget insurance is not easy, and finding out which companies offer the most affordable car insurance rates for drivers with bad credit involves even more perseverance. Each insurer has their own unique process to determine rates, so first let’s look at the rankings for the car insurance companies with the overall cheapest rates in Cleveland.
Best Cheap Insurance Rates with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $635 |
| 2 | Erie | $667 |
| 3 | Allied | $676 |
| 4 | Frankenmuth | $680 |
| 5 | USAA | $711 |
| 6 | Travelers | $712 |
| 7 | Cincinnati Insurance | $756 |
| 8 | Merchants Insurance Group | $771 |
| 9 | Grange Mutual | $804 |
| 10 | General Casualty | $813 |
| 11 | Motorists Mutual | $816 |
| 12 | Central Mutual | $840 |
| 13 | State Farm | $867 |
| 14 | Hastings Mutual | $893 |
| 15 | Atlantic States | $904 |
| 16 | Westfield | $936 |
| 17 | Western Reserve | $941 |
| 18 | Progressive | $962 |
| 19 | Nationwide | $998 |
| 20 | Auto-Owners | $998 |
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Utica National has some of the best car insurance rates in Cleveland at around $635 each year. This is $405 less than the average premium paid by Ohio drivers of $1,040. Erie, Allied, Frankenmuth, and USAA would also make the list of some of the most economical Cleveland, OH insurance companies.
As illustrated above, if you are insured with USAA and switched to Erie, you could earn a yearly savings of upwards of $44. Policyholders with Travelers could save as much as $45 a year, and Cincinnati Insurance policyholders might see rate reductions of $89 a year.
Understand that those premiums are averages across all insureds and vehicles and do not take into consideration an exact zip code location for drivers with bad credit. So the car insurance company that can offer you the best price may not even be in the top 33 companies in the list above. That emphasizes why you need to quote rates from as many companies as possible using your own personalized driver profile and vehicle information.
The vehicle requiring insurance is probably the largest consideration that determines whether or not you can buy economical auto insurance for drivers with bad credit. Vehicles with economical engines, good safety features, or a track record of few liability claims will cost quite a bit less to insure than fast, unsafe models.
The list below features car insurance rates for a number of the most economical vehicles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX-L 4-Dr Sedan | $1,426 |
| Ford Escape XLS 4WD | $1,436 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,441 |
| Honda CR-V EX-L 2WD | $1,519 |
| Chevrolet Impala LS | $1,524 |
| Ford Explorer XLT 2WD | $1,606 |
| Ford Focus SES 4-Dr Sedan | $1,609 |
| Ford Edge Limited AWD | $1,640 |
| Toyota Prius | $1,643 |
| Honda Odyssey EX W/Rear Entertainment | $1,666 |
| Jeep Grand Cherokee Laredo 4WD | $1,699 |
| Toyota Tacoma Double Cab 4WD | $1,707 |
| Toyota Camry LE | $1,699 |
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Prices above based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include multi-vehicle, homeowner, safe-driver, multi-policy, and claim-free. Estimates do not factor in zip code location which can change price quotes considerably.
Based upon the table data, you can conclude that models like the Honda Accord, Ford Escape, Jeep Wrangler, Honda CR-V, and Chevrolet Impala will definitely be the cheaper vehicles to insure for people with poor credit. The cost of auto insurance will be higher anyway just due to the fact that there is more liability risk for drivers with bad credit, but overall those specific models will have the best rates possible.
Drive safe and save
The easiest method to enjoy the cheapest car insurance rates in Cleveland for people with poor credit is to be a safe driver and avoid accidents and traffic violations. The information below demonstrates how traffic citations and accidents drive up car insurance rates for different age groups. Data assumes a single male driver, full coverage, $250 deductibles, and no discounts are taken into consideration.
In the chart above, the average cost of auto insurance per year with a clean driving record and no accidents is $1,601. Get two speeding tickets and the average cost increases to $2,119, an increase of $518 each year. Then throw in one accident along with the two speeding tickets and the annual cost of car insurance for drivers with bad credit goes up to an average of $2,649. That’s an increase of $1,048, or $87 per month, just for not being a responsible driver!
The example below shows how choosing a deductible can affect insurance premiums when getting quotes for cheap insurance for drivers with bad credit. The premium estimates are based on a single male driver, full physical damage coverage, and no additional discounts are factored in.
As shown above, a 40-year-old driver could reduce rates by $224 a year by switching from a $100 deductible up to a $500 deductible, or save $338 by switching to a $1,000 deductible. Younger drivers, like the 20-year-old, can cut $734 every year by using higher deductibles when buying full coverage.
If you make the decision to raise deductibles, it will be necessary to have plenty of savings on hand to enable you to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
How to get discounts on Cleveland insurance
Insurers that sell policies for drivers with bad credit may provide special discounts that could potentially reduce rates by as much as 30% if you meet the requirements. A few of the larger companies and a selection of discounts can be read below.
- State Farm policyholders can earn discounts including safe vehicle, multiple autos, Steer Clear safe driver discount, driver’s education, passive restraint, and multiple policy.
- GEICO discounts include daytime running lights, multi-vehicle, membership and employees, federal employee, multi-policy, and anti-lock brakes.
- Progressive has discounts for online signing, multi-policy, continuous coverage, multi-vehicle, homeowner, good student, and online quote discount.
- 21st Century includes discounts for homeowners, anti-lock brakes, driver training, teen driver, and defensive driver.
- American Family offers discounts including defensive driver, good driver, accident-free, good student, Steer into Savings, mySafetyValet, and air bags.
- The Hartford may include discounts for bundle, anti-theft, vehicle fuel type, good student, defensive driver, and air bag.
- AAA has savings for pay-in-full, multi-car, AAA membership discount, good driver, education and occupation, and anti-theft.
The information below visualizes the comparison of insurance rates with and without some available policy discounts. The price estimates are based on a male driver, no accidents or driving violations, Ohio state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with homeowner, anti-theft, accident-free, passive restraint, defensive driving course, and multiple policy discounts applied. When discounts are applied, theaverage amount saved on car insurance for drivers with bad credit is 27% or $328.
You are probably paying too much for car insurance
Cleveland, OH car insurance rates are based on many factors that control the price you have to pay. Simply improving your credit, getting married, or getting a few speeding tickets can trigger rate changes that can now make some companies more affordable than before.
In addition, companies change the rates they charge in Ohio as often as every three months to adjust for gains or losses. An unexpected high level of claims can cause more expensive premiums, while profitable underwriting can cause cheaper Cleveland car insurance rates.
To help illustrate this point, the bar chart below compares the cheapest car insurance in Cleveland, OH for a 35-year-old male driver with no violations or accidents, and a decent credit rating. When comparing rates based on his current risk factors, Utica National may have the cheapest car insurance rates in Cleveland at $811 per year. This is $229 less than the average rate paid by Ohio drivers of $1,040. Erie, Allied, Frankenmuth, and Travelers are also on the list of the top five cheapest Cleveland, OH auto insurance companies.
Now we will give the driver in the first chart an at-fault accident, less-than-perfect credit, and a couple of points charged on his driving record. Due to the fact that each insurance company has a different process for determining rates, comparing insurance quotes may result in a substantially altered list of the cheapest companies as shown below.
Merchants Insurance Group now has the lowest car insurance rate in Cleveland with Cincinnati Insurance, Motorists Mutual, Grange Mutual, and General Casualty also being competitive. This shows why it is important to perform a complete rate comparison when trying to find the most affordable auto insurance rates for drivers with bad credit.
Prices can be determined by many things and can decrease or increase without notice, so the best company when you bought your policy may now be one of the higher cost companies.