Cheap Car Insurance for Drivers with Bad Credit in North Carolina

Whenever people write about car insurance, the word cheap should never be used as a descriptor for car insurance rates. The fact is, cheap car insurance for drivers with bad credit can be hard to find. But don’t let that discourage you, because we can show you some ways you can quote and buy coverage that is cheaper than what you have now.

The car, truck, or SUV needing coverage is one of the largest factors that determines if you can find the cheapest coverage for drivers with bad credit. Vehicles with more horsepower, a lack of safety features, or a history of substantial liability claims will cost significantly more to insure than more modest models. The information below ranks car insurance prices for some of the most cost-effective automobiles to insure.

Table data represents married female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include multi-vehicle, homeowner, safe-driver, multi-policy, and claim-free. Price information does not factor in specific zip code location which can revise prices substantially.

Based on these rates, makes and models like the Chevrolet Traverse, Ford Escape, Honda CR-V, Honda Civic, and Volkswagen Jetta should be the more affordable vehicles to insure for people with poor credit. Auto insurance rates will tend to be more expensive anyway just because there is more claim exposure for drivers with bad credit, but overall those vehicles will most likely have the best rates compared to other vehicles.

Shopping around for low-priced car insurance is difficult, and determining which company offers the most affordable auto insurance rates for drivers with bad credit calls for even more rate comparisons. Insurance premiums will probably be moderately greater than the average rate in North Carolina, with the higher price attributed to the posibility of more claims associated with selling insurance for people with poor credit, but competitive insurance may be available with some perseverence. Every car insurance company has a different process for setting prices, so let’s begin by taking a look at the auto insurance companies with the most affordable rates in North Carolina.

Best Car Insurance Prices with Bad Credit

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Utica National has some of the lowest car insurance rates in North Carolina at around $643 annually. Progressive, Penn National, Liberty Mutual, and NC Farm Bureau also rank well as some of the best North Carolina car insurance companies.

As the rates illustrate above, if you are insured with Progressive and switched to Utica National, you may realize an annual savings of upwards of $8. Customers with Penn National might save as much as $74 a year, and Liberty Mutual customers might lower prices by $85 a year.

Bear in mind that those rates are averaged across all types of drivers and the different vehicles they drive and and are not figured with a rate increase for drivers with bad credit. So the auto insurance company that is best for you may not even be in the list above. That’s why you need to compare rates from as many companies as possible using your own specific driver information and vehicle.

Cost difference between full coverage and liability

Finding cheap auto insurance for drivers with bad credit in North Carolina is probably important to the majority of vehicle owners, and one good way to find cheap insurance is to only pay for liability coverage. The diagram below compares insurance premiums with full physical damage coverage compared to only buying liability only. The price estimates are based on no claims, a clean driving record, $500 deductibles, marital status is single, and no policy discounts are applied.

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If averaged out across all ages, comp and collision coverage costs an additional $1,181 per year over and above liability coverage. That brings up the question if paying for full coverage is a waste of money. There isn’t a written rule of when to phase out comprehensive and collision coverage on your policy, but there is a general guideline. If the annual cost of having full coverage is more than about 10% of replacement cost minus your deductible, then it could be time to drop full coverage.

For example, let’s say your vehicle’s replacement cost is $9,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, you would only receive $8,000 after paying your policy deductible. If it’s costing in excess of $800 annually for physical damage coverage, then it might be time to buy liability only.

There are some cases where only buying liability is not a good plan. If you still have a lienholder on your title, you have to maintain full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle if your current one is in an accident, you should not opt for liability only.

Best rates: Geico, Allstate, State Farm, or Progressive

When it comes to car insurance, the top insurers to get price quotes from are Geico, Allstate, State Farm, and Progressive. Combined they insure about half of the car insurance market in the United States. The data below compares and contrasts some of the different options and features that may be available in your state.

Find cheap auto insurance for drivers with bad credit in North Carolina

Lowering your rates is not difficult, and here are some thrifty ideas that can help North Carolina drivers buy the cheapest auto insurance.

• Safer vehicles generally have cheaper insurance rates
• Save money by only buying liability coverage for older vehicles
• Claim-free drivers earn discounts
• Do not get traffic citations
• Avoid accidents and claims
• Bundle home or renters insurance to earn a discount on car insurance
• Compare rates regularly and switch companies to save money

The last tip is particularly critical, as we noted in this write-up. Insurance prices in North Carolina adjust frequently, so don’t be afraid to switch to a new company if you find a cheaper price.

Having brand loyalty is commendable, but we do not recommend it if that inflexibility results in costing you several hundred dollars every year. Now is a great time to compare rates and find cheaper car insurance for drivers with bad credit.

Who has the cheapest insurance quotes for people with poor credit?

You have a lot of ways to quote and buy auto insurance in North Carolina, but the most popular ways are from an independent insurance agent, an exclusive insurance agent like Liberty Mutual or State Farm, or direct online or over the phone from a company like Progressive or Geico. You can use whichever method you prefer, but they differ in how they price policies.

Independent agents can place your business with multiple companies and can compare rates with each one. These types of agents are usually affiliated with several companies and can give you a larger rate selection, which can help you get more bang for your buck. If prices rise, an independent agent can move your coverage which prevents you from having to find a new agency.

An exclusive ageny is only able to quote rates from a single company such as an Auto-Owners or State Farm agent. Exclusive agents are unable to compare rates from other companies, so they have no alternatives for high prices.

Opting to purchase auto insurance direct means you bypass the middleman (the agent) and instead buy direct either online or via phone. This option may be preferred by consumers who do not have a need for a risk management assessment and have knowledge of what coverages they need.

So which of those three methods works best to buy cheap auto insurance for drivers with bad credit in North Carolina? The obvious answer would be buying from a direct car insurance company saves the most money since it doesn’t require paying agent commissions, but that is generally not the case. An argument could also be made that buying from an independent agent is the best way to go because they can quote many companies, but again, it’s not a sure thing. For some people, exclusive agencies may have prices that are the cheapest in North Carolina.

Because there is so much variation in auto insurance prices, the guaranteed way to not overpay for auto insurance is to get quotes and compare. Smart shoppers will get prices from all three types to give yourself the best selection. For a list of companies offering online discounts, click here to view.