For people with poor credit, one of the big things that determine insurance cost is where you normally keep your vehicle in Minneapolis. Larger areas will most likely pay more, whereas more rural areas have the benefit of cheaper auto insurance prices.
The illustration below sorts the most expensive cities in Minnesota for drivers with bad credit to buy an auto insurance policy in. Minneapolis is listed at #1 with an annual rate of $2,058 for the average policyholder, which is approximately $172 per month.
|16||Saint Louis Park||$1,702|
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Premium costs are approximated as specific location information can alter auto insurance rates noticeably.
Finding decent, low-priced auto insurance is not always easy, and figuring out which companies have the best auto insurance rates for drivers with bad credit will involve a little more work.
Each company has a proprietary formula to set policy rates, so let’s begin by examining the lowest cost auto insurance companies in Minneapolis. It’s a good idea to be aware that Minnesota auto insurance rates are determined by lots of factors that control the cost of your policy. This price variation is why it is critical to do a thorough rate comparison when trying to find the most economical car insurance rates for drivers with bad credit. Insurance prices are made up of many different factors and change substantially, so the most economical option when you bought your policy may now be priced much higher than other options.
Best Car Insurance Prices with Bad Credit
|Rank||Company||Cost Per Year|
|3||Farm Bureau Mutual||$837|
|5||West Bend Mutual||$943|
|13||Auto Club Group||$1,352|
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Travelers quotes some of the cheapest car insurance rates in Minneapolis at around $647 a year. This is $774 less than the average rate paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and West Bend Mutual also qualify as some of the more affordable Minneapolis, MN car insurance companies.
As the rates illustrate above, if you buy coverage from Western National and switched to Travelers, you might realize an annual premium reduction of upwards of $254. Customers with West Bend Mutual might save as much as $296 a year, and The Hartford policyholders might see rate reductions of $317 a year.
To find out how your current rates compare, click here to get quotes or visit any of the low-priced companies below.
It’s important to note that these premium estimates are averages across all insureds and vehicles and do not take into consideration a specific vehicle garaging location for drivers with bad credit. So the auto insurance company that has the cheapest rates for you may not even be in the top 24 companies in the list above. That point stresses why you need to compare prices as often as possible using your own specific driver and vehicle information.
The make and model of vehicle that is being insured is probably the most important factor when quoting cheaper car insurance for drivers with bad credit. Vehicles with lots of speed or power, a lack of safety features, or a history of substantial liability claims will cost substantially more to insure than more economical and safe models.
The table below features car insurance prices for the most economical vehicles to insure.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$1,458|
|Dodge Grand Caravan CV||$1,599|
|Honda CR-V LX 4WD||$1,632|
|Ford Edge SEL 2WD||$1,656|
|Volkswagen Jetta 2.0T Station Wagon||$1,667|
|Toyota Camry SE||$1,775|
|Honda Odyssey Touring||$1,808|
|Honda Civic DX 4-Dr Sedan||$1,895|
|Honda Accord EX-L 4-Dr Sedan||$1,900|
|Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD||$1,930|
|Chevrolet Malibu LS||$1,933|
|Toyota RAV4 Limited 4WD||$1,943|
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Above prices assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include multi-policy, claim-free, safe-driver, homeowner, and multi-vehicle. Rates do not factor in specific zip code location which can decrease or increase auto insurance rates greatly.
By looking at the data, you can assume that makes and models like the Ford Escape, Dodge Grand Caravan, Honda CR-V, Ford Edge, and Volkswagen Jetta should be some of the more affordable vehicles to insure for people with poor credit. The price for an auto insurance policy will tend to be more expensive because of the fact that there is more claim risk for drivers with bad credit, but overall those specific models will probably have the least expensive rates compared to other types of vehicles.
Choosing a high-quality company can be a challenge considering how many companies there are to choose from in Minneapolis. The company rank data shown next could help you analyze which companies to look at comparing rates from. The ratings below are only made up of the largest companies in the United States, so smaller companies that only insure vehicles in Minnesota are not factored into this list.
Top 10 Large Auto Insurance Companies in Minneapolis Ranked by Claims Service
- Liberty Mutual
- AAA Insurance
- Safeco Insurance
- The General
Top 10 Large Auto Insurance Companies Overall in Minneapolis
- 21st Century
- AAA Insurance
- Liberty Mutual
- Safeco Insurance
- State Farm
- American Family
Discounts on Minneapolis insurance rates
Auto insurance companies that provide policies for drivers with bad credit may also offer premium discounts that can lower rates by as much as 35% or more if you are eligible. The best auto insurance companies and some of the premium reductions they offer include:
- State Farm may include discounts for Drive Safe & Save, passive restraint, accident-free, multiple policy, and defensive driving training.
- Esurance offers discounts for paid-in-full, multi-policy, emergency road assistance, good driver, Pac-12 alumni, and anti-theft.
- Progressive policyholders can earn discounts including good student, online signing, online quote discount, homeowner, continuous coverage, and multi-policy.
- Liberty Mutual includes discounts for teen driver discount, newly married, good student, hybrid vehicle, new graduate, and exclusive group savings.
- Auto-Owners Insurance may have discounts that include teen driver, anti-lock brakes, multi-policy, mature driver, and good student.
- GEICO discounts include federal employee, daytime running lights, air bags, good student, military active duty, and membership and employees.
The illustration below illustrates the comparison of annual premium costs with and without discounts. The costs are based on a male driver, no accidents, no driving violations, Minnesota state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with multiple policy, safe-driver, defensive driving course, claim-free, marriage, and multiple vehicle discounts applied. In this example, theaverage amount saved on auto insurance for drivers with bad credit is 28% or $371.
Difference between liability only and full coverage rates
Buying cheaper auto insurance is the goal of most people, and one common way to pay lower rates for insurance for drivers with bad credit is to buy only liability coverage. The chart below visualizes the comparison of annual premium costs when comparing full coverage to liability only. Data assumes no claims or violations, $500 deductibles, single status, and no discounts are applied.
Averaged out for all age groups, comprehensive and collision coverage on your policy costs $1,498 per year more than buying just liability insurance. That raises the question if it’s a good idea to buy full coverage. There is no definitive rule of when to exclude physical damage insurance, but there is a guideline you can use. If the annual cost of your full coverage insurance is about 10% or more of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
How to find low-cost auto insurance for drivers with bad credit
The list below details some of the recommended thrifty solutions that can help Minneapolis drivers quote low-cost auto insurance.
- Speeding tickets and other violations increase rates
- Being accident-free can lower rates significantly
- Drop full coverage on older vehicles
- Raise comprehensive and collision coverage deductibles
- Drivers with good credit often pay less
- The safer your car, the less it costs to insure
- Shop around and save
That final tip is particularly critical, as we noted in the prior article. Auto insurance rates change a lot, so don’t be afraid to buy from a different company if a better deal can be had. Having a favorite company is great, but it’s not recommended if it’s costing you major coinage every year. It takes less than five minutes to compare prices to find cheaper insurance for drivers with bad credit in Minneapolis.