Best Cheap Car Insurance for Drivers with Bad Credit in New Jersey

You have probably watched the catchy commercials from car insurance companies like Nationwide, Progressive, and The General that claim enormous savings. So you just need to pick one at random, right?

It’s just not that easy, however, as there are a whole bunch of unknown factors like how far you drive each year, your date of birth, your financial stability, and if you have ever let your policy lapse, that all impact the price you pay. We will touch on the types of situations that result in high rates and will hopefully give you a jump start in finding the best auto insurance.

Locating budget car insurance is confusing at best, and determining which company offers the cheapest insurance rates for drivers with bad credit calls for even more diligence. Insurance prices will probably be slightly pricier than the average policy in New Jersey, with the increase attributed to the potentially higher risk related to selling coverage for people with poor credit, but economical coverage may be available with some perseverence. Each insurer has a different process for establishing rates, so we’ll go over the insurance companies with the overall cheapest rates in New Jersey.

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21st Century quotes some of the cheapest car insurance rates in New Jersey at around $1,100 per year. Travelers, New Jersey Manufacturers, Penn National, and Palisades would also be considered some of the most economical New Jersey car insurance companies.

In the above example, if you are insured with Penn National and switched to 21st Century, you may see yearly savings of about $238. Policyholders with Palisades could save as much as $295 a year, and Allstate policyholders might cut rates by $393 a year.

To discover how much you can save, click here to start your custom quote or feel free to get quotes from the companies below.

It’s important to note that these premiums are averages for all types of drivers and the different vehicles they drive and and are not figured with a price increase for drivers with bad credit. So the auto insurance company that can offer you the best price may not even be featured in the company chart above. That emphasizes why you need to compare as many prices as possible using your own specific driver and vehicle information.

For New Jersey drivers, one of the considerations that insurance companies take into consideration when calculating the price of your policy is where your residence is in New Jersey. Cities with larger populations or higher claim trends like East Orange, West New York, and Paterson tend to pay higher rates, whereas cities that are not as densely populated generally pay less for insurance.

The illustration below displays the higher priced cities in New Jersey for drivers with bad credit to purchase a policy in.

Table data uses approximated as the vehicle garaging location can impact insurance rates greatly.

Violations and accidents raise rates

The common sense way to earn the best cheap car insurance for drivers with bad credit in New Jersey is to be a cautious driver and avoid accidents and traffic citations. The example below highlights how traffic violations and accidents can impact insurance rates for each age group. Data assumes a single female driver, comp and collision included, $100 deductibles, and no discounts are applied.

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In the previous chart, the average cost of an auto insurance policy in New Jersey per year with no accidents or violations is $3,545. Get written up for one speeding ticket and the average cost increases to $4,018, an increase of $473 each year. Now add in one accident along with the one speeding ticket and the yearly cost of insurance for drivers with bad credit goes up to an average of $5,368. That’s an increase of $1,822, or $152 per month, just for being a little careless behind the wheel!

Find the best cheap car insurance for drivers with bad credit in New Jersey

Lowering your rates is not difficult, and here are some penny-pinching ideas that can help New Jersey drivers quote low-cost car insurance.

• Buying home and auto together can help save money
• Pay for smaller claims out-of-pocket
• Buy a car with high safety ratings
• Accident-free drivers may qualify for discounts
• You will pay more if you get tickets or have at-fault accidents
• Compare rates regularly to ensure the best deal

The last tip is particularly necessary, as was affirmed in the prior information. Prices charged by car insurance companies fluctuate considerably, so don’t be afraid to change insurance companies if a more affordable rate is found. Brand loyalty is not necessarily bad, but is isn’t recommended if that faithfulness ends up costing you a fortune every year. In just a few minutes you could shop around to find cheaper insurance for drivers with bad credit.