Determining which company has the most affordable insurance rates for drivers with bad credit will require a little more work in order to find a policy that fits your budget.
Each auto insurer has their own process for setting prices, so let’s rank the most budget-friendly insurance companies in California. It’s important to understand that San Jose insurance rates are calculated based on many things that can increase the price you pay. Simply having a birthday, moving to a different location, or having an at-fault accident may generate price changes resulting in some rates now being much cheaper than others.
Find the Best Cheap Insurance with Bad Credit
USAA offers some of the lowest car insurance rates in San Jose at around $1,143 each year. This is $508 less than the average policy premium paid by California drivers of $1,651. Century National, Wawanesa, CSAA, and Nationwide also qualify as some of the more affordable San Jose, CA auto insurance companies.
As illustrated above, if you are currently insured with CSAA and switched to Century National, you might realize annual savings of in the neighborhood of $8. Insureds with Nationwide may save as much as $85 a year, and 21st Century insureds might see rate reductions of $160 a year.
Understand that those policy prices are averaged across all drivers and vehicles in California and and are not calculated with a specific location for drivers with bad credit. So the car insurance company that has the cheapest rates for you may not even be in the top 24 companies in the list above. That helps illustrate why you need to compare prices as often as possible using your own specific driver and vehicle information.
The vehicle model on the policy is one of the main factors when comparing affordable auto insurance for drivers with bad credit. Vehicles with more horsepower, poor safety features, or high incidents of liability claims will cost quite a bit more to insure than more modest models. The next table outlines insurance rates for a selection of the cheapest vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$881|
|Jeep Wrangler Rubicon 4WD 2-Dr||$967|
|Ford Edge Sport AWD||$1,072|
|Toyota Corolla S||$1,079|
|Ford Escape XLT 4WD||$1,081|
|Volkswagen Jetta SEL 4-Dr Sedan||$1,093|
|Dodge Grand Caravan CV||$1,110|
|Honda Accord EX-L 4-Dr Sedan||$1,146|
|GMC Sierra 2500HD SLT Crew Cab 4WD||$1,148|
|Chevrolet Impala LS||$1,155|
|Kia Optima EX||$1,165|
|Toyota Camry Hybrid||$1,175|
|Toyota RAV4 Sport 2WD||$1,171|
|Dodge Ram 2500 Crew Cab Laramie 4WD||$1,184|
|Dodge Ram 3500 Crew Cab SLT 2WD||$1,186|
|Ford F-150 XL Crew Cab 4WD||$1,209|
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Price data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include homeowner, safe-driver, claim-free, multi-vehicle, and multi-policy. Price information does not factor in specific zip code location which can affect premiums significantly.
Looking at the rates, we can expect cars like the Honda CR-V, Toyota Prius, Jeep Wrangler, and Ford Edge are most likely to be a few of the most affordable vehicles to insure for people with poor credit. The price for an auto insurance policy will tend to be higher because of the fact that there is a higher risk for drivers with bad credit, but in general those specific models will have the lowest insurance rates compared to other vehicles.
One of the more important things that help determine auto insurance rates is where your car is garaged. Larger areas tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.
The information below lists the highest-priced areas in California for drivers with bad credit to buy auto insurance in. San Jose ranks #20 with an annual cost of $1,381 for the average insured, which is approximately $115 per month.
|Rank||City||Average Per Year|
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Rates are estimated as specific location information can lower or raise prices noticeably.
The information below illustrates how your choice of deductibles can increase or decrease insurance costs when trying to find cheap insurance for drivers with bad credit. The premium estimates are based on a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
As shown above, a 40-year-old driver could pocket $436 a year by switching from a $100 deductible to a $500 deductible, or save $656 by choosing a $1,000 deductible. Youthful drivers, like the age 20 example, could save as much as $1,432 each year by choosing a larger deductible amount. When using a larger deductible, it is necessary to have plenty of discretionary funds to be able to cover the extra out-of-pocket expense, which deters some people from using high deductibles.
Insuring your vehicle with the highest-rated insurance company can be a challenge considering how many companies provide coverage in California. The company ratings listed below could help you pick which car insurance companies you want to consider when comparing rate quotes. These rankings are only made up of the largest companies in the United States, so companies that focus mainly on California business are not taken into consideration for this list.
Top 10 Large Auto Insurance Companies in San Jose Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Nationwide – A+
- Allstate – A+
- Mercury Insurance – A+
- Progressive – A+
- Titan Insurance – A+
Here’s why you should shop around
San Jose insurance rates are based on many factors that can increase the cost of having a policy. Improving your credit rating, moving to a different location, or getting a ticket for running a stop sign can trigger changes in premium resulting in some rates now being cheaper than others.
Not only may your situation change, but insurance companies file new California car insurance rates at least once a year to reflect underwriting profits or losses. Larger than normal claims can cause additional price hikes, while less frequent claims can result in lower-cost San Jose car insurance rates.
To help illustrate this point, the data below shows a variety of companies that have the cheapest car insurance in San Jose, CA for a 40-year-old male driver with no prior accidents, a clean driving record, and a high credit rating. If we compare prices based on his personal risk profile, USAA may have the most affordable car insurance rates in San Jose at $1,169 each year. This is $482 less than the average premium paid by California drivers of $1,651. Wawanesa, Nationwide, Century National, and CSAA also make the list of the most affordable San Jose, CA auto insurance companies.
Now we will give the driver in the first example a claim or two, a lower credit rating, and a blemish on his driving record. Because each company has a different formula for setting prices, analyzing rate quotes could now result in a new list of affordable companies as shown below.
Grange now has the lowest car insurance rate in San Jose, CA with Mercury, Allied, Progressive, and Allstate completing the list. This example shows why it is important to compare lots of rates when trying to get the best auto insurance quotes for drivers with bad credit. Car insurance prices are influenced by many risk factors and change substantially, so the best option a year ago may now be one of the higher cost companies.
Ideas for buying cheaper auto insurance for drivers with bad credit
Lowering your rates is not difficult, and here are some thrifty ideas that can help San Jose drivers buy lower-cost auto insurance.
- Accident-free drivers may qualify for discounts
- Bundle home and auto and save
- Vehicles with safetly features generally cost less to insure
- Full coverage is expensive so only insure older vehicles for liability only
- Good credit can help you save money
- Ensure you have the best deal by shopping around regularly
That last piece of advice is especially crucial, as was stressed in the article above. Auto insurance rates change frequently, so drivers shouldn’t be resistant to switch to a new company if a better rate can be found. Having a favorite company is great, but it isn’t a good idea if that loyalty results in overpaying a considerable chunk of change every month. Now is a great time to compare prices and find cheaper car insurance for drivers with bad credit in San Jose.
If you have coverage questions and would like to have some professional guidance when trying to find the best insurance rates for drivers with bad credit, the insurance agencies below can help you determine which policy fits your needs best. To locate a San Jose auto insurance agent using an interactive map, click the link at the bottom or click here to get price quotes now.
Taylor Benefits Insurance Agency
4820 Harwood Rd #130 – San Jose, CA 95124 – (408) 358-7502
Gatewood Insurance Agency Inc
1095 Bird Ave #2 – San Jose, CA 95125 – (408) 298-1611
1080 Minnesota Ave # 4 – San Jose, CA 95125 – (408) 294-4348