The type of vehicle driven is probably the most important factor when shopping around for the best cheap auto insurance for drivers with bad credit. Vehicles with higher performance, a lack of safety features, or a track record of large liability claims will cost significantly more to insure than safer models.
The next list ranks coverage costs for a handful of the cheapest automobiles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$1,351|
|Honda CR-V EX 2WD||$1,549|
|Chevrolet Equinox LT AWD||$1,599|
|Ford F-150 FX2 2WD||$1,630|
|Ford Focus SEL 4-Dr Sedan||$1,651|
|Jeep Grand Cherokee SRT-8 4WD||$1,712|
|Hyundai Sonata GLS 4-Dr Sedan||$1,719|
|Chevrolet Silverado LS Extended Cab 2WD||$1,712|
|Ford Fusion SEL 4-Dr Sedan||$1,722|
|Ford Explorer Eddie Bauer 2WD||$1,738|
|Chevrolet Impala LS||$1,799|
|Chevrolet Malibu LS||$1,833|
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Data variables include single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, safe-driver, multi-policy, multi-vehicle, and homeowner. Estimates do not factor in your specific Sacramento, CA location which can modify premium rates noticeably.
Based upon these rates, we can tell that makes and models like the Ford Escape, Toyota Prius, Honda CR-V, and Chevrolet Equinox are going to be the most budget-friendly vehicles to insure for people with poor credit. Car insurance rates will be more expensive just because there is more claim exposure for drivers with bad credit, but in general those specific models will tend to have the least expensive rates that you’ll find.
One of the many criteria that help determine car insurance rates is where you keep your vehicle. Cities with larger populations or higher claim trends likely pay more, whereas less populated areas profit from lower rates.
The information below rates the most expensive areas in California for drivers with bad credit to buy an auto insurance policy in. Sacramento ranks #5 with an annual cost of $1,652 for the average policy, which is around $138 each month.
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Prices are estimated as specific Sacramento zip code can modify insurance rates significantly.
Cost of full coverage
Saving money on auto insurance is probably important to most drivers, and one great way to save on the cost of insurance for drivers with bad credit is to buy only liability coverage. The example below illustrates the comparison of annual premium costs with full physical damage coverage compared to only buying the minimum liability limits required in California. The rate quotes are based on no claims, a clean driving record, $500 deductibles, single marital status, and no additional discounts are factored in.
Averaged for all ages 20 through 70, physical damage coverage costs an extra $2,075 per year more than insuring for liability only. That is a large expense and it proposes the question if it’s a good idea to buy full coverage. There is no definitive formula of when to drop full coverage on your policy, but there is a general guideline. If the yearly cost of full coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.
The chart below shows how different deductible levels can raise or lower premium costs when searching for cheap insurance for drivers with bad credit. The information is based on a married male driver, full coverage, and no policy discounts are applied.
The chart above illustrates that a 40-year-old driver could pocket $428 a year by switching from a $100 deductible to a $500 deductible, or save $648 by changing to a $1,000 deductible. Young drivers, such as the Age 20 example, could reduce their rates up to $1,434 or even more by using a higher deductible.
If you make the decision to raise deductibles, it is a good idea to have enough savings to be able to pay the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.
Selecting the highest-rated insurance provider is difficult considering how many companies sell insurance in California. The company rank data in the next section could help you choose which insurers to look at when comparing auto insurance rates for drivers with bad credit.
The rankings below are for large, nationwide insurance companies, so smaller regional companies are not taken into consideration for these rankings. If you’d like to compare prices from these companies and more, click here.
Top 10 Major Auto Insurance Companies in Sacramento Ranked by Value
- American Family
- The Hartford
- AAA of Southern California
- Titan Insurance
- The General
- AAA Insurance
- State Farm
- Mercury Insurance
Why you are probably overpaying for car insurance
Sacramento, CA auto insurance rates are based on many factors that can increase your annual premium. Simply having a birthday, buying a new vehicle, or having a fender bender may cause policy rate changes that can now make some companies cheaper than competitors. Not only that, but insurance companies amend premium rates as needed to ensure their profitability. Heavy losses can result in more expensive premiums, while profitable underwriting can cause more affordable Sacramento car insurance rates.
The bar chart below shows the cheapest car insurance in Sacramento, CA for a 40-year-old female driver with no prior accidents, a clean driving record, and a good credit rating. Based on her current situation, USAA might quote the most affordable car insurance rates in Sacramento at $1,463 annually. This is $188 less than the average policy premium paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide are the remainder of the cheapest Sacramento, CA auto insurance companies.
The chart below compares rates after we give the driver in the first example a claim, slightly worse credit, and a blemish on her driving record. Since each insurance company has a proprietary formula for determining prices, analyzing rates most likely will result in a new list of the cheapest companies as shown below.
Grange now has the cheapest insurance rate in Sacramento, CA with Mercury, Allied, Progressive, and Allstate also being competitive. This shows why Sacramento drivers need to perform a complete rate comparison to get affordable insurance quotes for drivers with bad credit. Car insurance prices are determined by many things and can change substantially, so the lowest-price company the last time you shopped your coverage around may now be costing you a lot of money.