The car, truck, or SUV requiring insurance is a large consideration that determines whether or not you find the most affordable insurance for drivers with bad credit. Vehicles with lower acceleration and performance, advanced safety features, or a low likelihood of liability claims will cost less to insure than higher performance models. The data below ranks coverage premiums for some of the most cost-effective vehicles to insure in Wisconsin.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Hyundai Elantra SE Touring Station Wagon||$1,837|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,866|
|Dodge Grand Caravan CV||$1,905|
|Ford Edge SEL 2WD||$1,970|
|Chevrolet Malibu LS||$2,008|
|Jeep Grand Cherokee Laredo 2WD||$2,017|
|Toyota RAV4 Limited 2WD||$2,008|
|GMC Sierra SL Extended Cab 2WD||$2,015|
|Toyota Tacoma Double Cab 4WD||$2,050|
|Ford Escape Limited 2WD||$2,136|
|Honda CR-V EX-L 2WD||$2,146|
|Nissan Rogue S 2WD||$2,153|
|Ford Fusion Sport 4-Dr Sedan||$2,156|
|Nissan Altima 3.5 SR 4-Dr Sedan||$2,164|
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Data variables include single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include safe-driver, multi-vehicle, multi-policy, claim-free, and homeowner. Price estimates do not factor in specific zip code location which can decrease or increase coverage prices greatly.
By looking at the data, cars like the Hyundai Elantra, Jeep Wrangler, and Toyota Prius are going to be some of the cheaper vehicles to insure for people with poor credit. The price of auto insurance will be more costly just due to the fact that there is a higher risk for drivers with bad credit, but in general those models will probably have the best insurance prices compared to other vehicles.
Establishing which company quotes the cheapest auto insurance rates for drivers with bad credit will require a bit more effort than just getting one or two price quotes.
Every insurance company used slightly different criteria to set their prices, so let’s take a look at the most budget-friendly auto insurance companies in Milwaukee. It’s a good idea to know that Wisconsin auto insurance rates are based on many factors that may substantially change the cost of a policy. Simply having another birthday, buying another vehicle, or getting a DUI may cause policy rate changes that can now make some companies more affordable than others.
Best Insurance Companies with Bad Credit
|Rank||Company||Cost Per Year|
|5||Rural Mutual Insurance||$749|
|12||West Bend Mutual||$917|
|14||Auto Club Group||$939|
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USAA quotes some of the lowest car insurance rates in Milwaukee at around $580 a year. This is $581 less than the average price paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Pekin Insurance, and Rural Mutual Insurance would also be considered some of the more affordable Milwaukee, WI car insurance companies.
As shown in the table above, if you are insured with Partners Mutual and switched to USAA, you may realize an annual premium reduction of roughly $34. Drivers with Erie may save as much as $137 a year, and Pekin Insurance customers might cut rates by $165 a year.
Remember that these policy rates are averages for all ages of drivers and types of vehicles and and are not calculated with an exact zip code location for drivers with bad credit. So the company that can offer you the lowest price may not even be in the top 30 companies shown above. That point stresses why you need to get auto insurance quotes using your own personal information and vehicle type.
For people with poor credit, one of the largest criteria that help determine the amount you pay for auto insurance is where your residence is in Milwaukee. Cities with larger populations likely pay more, whereas areas that tend to be more rural have the enjoyment of a little cheaper coverage.
The information below shows the most expensive places in Wisconsin for drivers with bad credit to purchase auto insurance in. Milwaukee comes in at #1 with a yearly premium of $1,368 for the average insured, which is around $114 each month.
|Rank||City||Premium Per Year|
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Rate information is approximated as the specific zip code location can change premiums considerably.
Full coverage rates compared to liability-only
Saving money when shopping for auto insurance is the goal of the majority of drivers, and one way to lower the cost of insurance for drivers with bad credit is to not pay for full coverage. The example below compares yearly insurance costs with full physical damage coverage and with liability coverage only. The premiums assume no driving violations, no at-fault accidents, $500 deductibles, single marital status, and no discounts are factored in.
If the expense is averaged for all age categories, full coverage on your policy costs an additional $1,195 per year over having just liability coverage. That is a big expense that brings up the question if physical damage coverage is worth the money. There is no definitive formula for eliminating comp and collision coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is 10% or more of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s replacement value is $12,000 and you have $1,000 policy deductibles. If your vehicle is totaled, the most you would receive is $11,000 after you pay the deductible. If you are paying more than $1,100 a year to have full coverage, then you might consider buying liability only.
There are some circumstances where buying only liability insurance is not recommended. If you have an outstanding loan on your vehicle, you have to maintain full coverage as part of the loan requirements. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should keep full coverage on your policy.
Insurance rate increases from tickets or accidents
The ideal way to score the best auto insurance rates for people with poor credit is to be a safe driver and not receive tickets or have accidents. The information below illustrates how traffic citations and accidents can influence insurance premiums for different age groups. The premiums are based on a married male driver, comp and collision included, $500 deductibles, and no discounts are applied to the premium.
The data in the chart shows the average cost of an auto insurance policy per year with no violations or accidents is $1,237. Factor in two speeding tickets and the average cost increases to $1,704, an increase of $467 each year. Now add in two accidents along with the two speeding tickets and the annual cost of auto insurance for drivers with bad credit jumps again to an average of $3,535. That’s an increase of $2,298, or $192 per month, just for not being attentive to the road!
How to get discounts on Milwaukee insurance
Car insurance companies that offer quotes for drivers with bad credit may also provide rate discounts that could potentially reduce rates by as much as 30% if you qualify. A few popular companies and a summarized list of policyholder discounts are:
- American Family offers discounts including good student, TimeAway discount, defensive driver, bundled insurance, and air bags.
- Nationwide offers premium reductions for multi-policy, defensive driving, accident-free, business or organization, family plan, anti-theft, and good student.
- MetLife includes discounts for defensive driver, good driver, claim-free, multi-policy, accident-free, good student
- 21st Century may offer discounts for air bags, teen driver, anti-lock brakes, good student, student driver, driver training, and early bird.
- Farmers Insurance has discounts for mature driver, homeowner, teen driver, alternative fuel, multi-car, and good student.
- Allstate may have discounts that include anti-theft, new car, eSmart discount, premier discount, good student, economy car, and auto/life discount.
The information below compares auto insurance rates with and without some available policy discounts. The information is based on a female driver, no claims or driving citations, Wisconsin state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with passive restraint, homeowner, claim-free, marriage, anti-theft, and safe-driver discounts applied. When taking advantage of discounts, theaverage yearly reduction on auto insurance for drivers with bad credit is 27% or $286.
How to find cheaper insurance for drivers with bad credit
Lowering your rates is not difficult, and here are many money-saving suggestions that can help Wisconsin drivers find lower-cost auto insurance.
- Save money by insuring older vehicles for liability only
- Buying your home and auto policies from the same company can earn a discount
- Vehicles with good safety ratings are usually cheaper to insure
- Having too many claims will increase rates substantially
- Increase your physical damage deductibles
- Pay cheaper rates with good credit scores
- Comparison shop frequently
The last suggestion is particularly valuable, as we noted in the prior article. Auto insurance prices can change in a short period of time, so don’t be tentative to change insurance companies if you can save money. Many drivers tend to have loyalty to a certain company, but it isn’t a good idea if that dedication is costing hundreds of dollars a year. Take a couple minutes and compare rates and find cheaper auto insurance for drivers with bad credit in Milwaukee.