Deciding which insurers offer the best auto insurance rates for drivers with bad credit calls for a little more work in order to find coverage that fits your budget. Each insurer uses different criteria to determine premium rates, so we will examine the lowest cost auto insurance companies in Maryland.
It’s a good idea to know that Baltimore auto insurance rates are influenced by many factors that control the cost of your policy. Improving your credit score, filing a claim, or getting a couple of tickets can cause premium changes that can cause some rates to be cheaper than others.
Best Auto Insurance Prices with Bad Credit
|Rank||Company||Cost Per Year|
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USAA offers some of the lowest car insurance rates in Baltimore at around $958 per year. Liberty Mutual, Erie, Penn National, and State Auto are also some of the lowest-priced Baltimore, MD auto insurance companies.
As shown in the rates above, if you are a policyholder with Penn National and switched to Liberty Mutual, you could earn a yearly savings of around $23. Maryland drivers with State Auto could save as much as $64 a year, and Amica policyholders might lower prices by $220 a year.
It’s important to note that these policy prices are averages for all insureds and vehicles and do not factor in a specific zip code for drivers with bad credit. So the car insurance company that can offer you the lowest price may not even be in the list above. That affirms the importance of why you need to quote rates from many companies using your own personalized driver profile and vehicle information.
One of the many criteria that aid in calculating the price you pay for insurance is where you live in Baltimore. Larger areas are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates get the luxury of paying less.
The table below sorts the highest-priced places in Maryland for drivers with bad credit to purchase auto insurance in. Baltimore comes in at #1 with a yearly premium of $1,760 for the average policyholder, which is around $147 per month.
|21||Bel Air South||$1,222|
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Rate information is estimated as the specific Baltimore residence address can decrease or increase price quotes greatly.
The car, truck, or SUV driven is one of the largest factors when comparing low-cost car insurance for drivers with bad credit. Vehicles with lots of speed or power, a lack of modern safety features, or an increased likelihood of liability claims will cost much more to insure than more modest models. The list below ranks coverage premiums for the most economical vehicles to insure.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Focus SE 4-Dr Sedan||$2,844|
|Toyota Camry LE||$2,901|
|Toyota RAV4 Limited 4WD||$2,906|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$2,958|
|Honda CR-V LX 4WD||$3,008|
|Ford Escape Limited 4WD||$3,043|
|Chevrolet Silverado LT Crew Cab 4WD||$3,111|
|Ford Explorer XLT 4WD||$3,153|
|Dodge Grand Caravan SE||$3,159|
|Honda Accord EX 2-Dr Coupe||$3,264|
|Nissan Rogue SL AWD||$3,271|
|Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD||$3,313|
|Kia Optima EX||$3,320|
|Toyota Camry Hybrid||$3,330|
|Jeep Grand Cherokee Laredo 2WD||$3,328|
|GMC Sierra SLE Crew Cab 2WD||$3,333|
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Premium data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Maryland minimum liability limits. Discounts applied include homeowner, claim-free, multi-vehicle, multi-policy, and safe-driver. Rate information does not factor in garaging location in Baltimore, MD which can change auto insurance rates considerably.
Based upon these rates, we can conclude that models like the Ford Focus, Toyota Camry, Toyota RAV4, and Dodge Ram 3500 will be the more affordable vehicles to insure for people with poor credit. Auto insurance rates will trend higher just due to the fact that there is more claim exposure for drivers with bad credit, but generally speaking those particular vehicles will have the lowest prices that you are likely to find.
The illustration below illustrates how your choice of deductibles can influence premium costs when researching cheap insurance for drivers with bad credit. The rate quotes are based on a married female driver, full physical damage coverage, and no other discounts are factored in.
A 30-year-old driver could lower their policy premium by $450 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $678 by selecting a $1,000 deductible. Young drivers, such as the 20-year-old example, could save as much as $958 each year just by choosing higher deductibles. When insureds make the decision to increase the deductibles on their policy, it is a good idea to have additional funds squirreled away to be able to cover the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Liability-only versus full coverage
Paying less for auto insurance should be important to most vehicle owners, and a good way to lower the cost of insurance for drivers with bad credit is to not insure for full coverage. The chart below shows the difference between insurance prices with full physical damage coverage compared to only buying liability only. The data assumes a clean driving record, no claims, $500 deductibles, marital status is single, and no discounts are applied to the premium.
If we average the cost for all age groups, physical damage insurance costs an additional $1,910 per year more than insuring for liability only. Many drivers will wonder when is it a good idea to stop buying full coverage. There is no written rule to delete comp and collision coverage, but there is a guideline you can consider. If the annual cost of having full coverage is more than around 10% of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.
There are some scenarios where only buying liability is not a good plan. If you still owe a portion of the original loan, you have to maintain full coverage to satisfy the loan requirements. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should not opt for liability only.
Ratings for Baltimore auto insurance companies
Finding a good quality car insurance provider can be rather challenging considering how many companies sell coverage in Maryland. The rank data shown next could help you decide which auto insurance companies you want to consider when trying find the best insurance for drivers with bad credit. These rankings are only comprised of companies who write in the majority of U.S. states, so companies with more of a regional focus are not factored into these rankings.
Top 10 Major Auto Insurers Overall in Baltimore
- AAA Insurance
- State Farm
- The Hartford
- Safeco Insurance
- American Family
Top 10 Major Auto Insurers in Baltimore Ranked by Customer Satisfaction
- USAA – 91%
- AAA Insurance – 90%
- Esurance – 90%
- Nationwide – 89%
- Travelers – 88%
- Progressive – 88%
- Safeco Insurance – 88%
- State Farm – 88%
- Allstate – 88%
- The Hartford – 87%
The benefit of shopping around
Maryland auto insurance rates are determined by lots of factors which can significantly increase or decrease the cost of your policy. Improving your credit score, increasing deductibles, or getting a few speeding tickets can trigger price changes that may make certain companies affordable when they were higher priced.
Not only that, but insurers amend pricing every year or even multiple times each year to ensure their profitability. Heavier than normal losses can cause increased rates, while better underwriting can result in cheaper Baltimore car insurance rates.
To illustrate this point, the data below shows which company has the cheapest car insurance in Baltimore, MD for a 45-year-old male driver with a clear driving record, no claims, and good credit. If we compare prices based on his personal risk profile, USAA might quote the cheapest car insurance rates in Baltimore at $1,636 each year. This is $77 more than the average policy premium paid by Maryland drivers of $1,559. Liberty Mutual, Penn National, Erie, and State Auto round out the rest of the top five cheapest Baltimore, MD auto insurance companies.
In this next rate comparison, we will give the driver in the first example a chargeable accident, poor credit, and a traffic citation. Since every insurance provider has a different process for determining rates, comparing insurance quotes could result in a new list of affordable companies as shown below.
MetLife now has the cheapest rate in Baltimore, MD with Nationwide, Travelers, GEICO, and California Casualty completing the list. This example shows why consumers need to perform a complete rate comparison when trying to find the most affordable auto insurance quotes for drivers with bad credit. Auto insurance prices can be determined by many different factors and change frequently, so the most affordable company three years ago may now be wasting a lot of money.