The words “low-cost” and “auto insurance” really shouldn’t be used together, especially when you are trying to find the lowest insurance rates for drivers with bad credit. To help control this cost, let’s lead off by showing you some of the factors that have an effect on insurance prices, and come up with some ways to take the sting out of the next policy you buy.
Trying to buy low-priced insurance is easier said than done, and finding out which company offers the most affordable insurance rates for drivers with bad credit will involve even more perseverance. Every car insurance company uses slightly different criteria for determining prices, so let’s take a look at the most budget-friendly insurance companies in Nebraska.
It’s important to understand that Omaha insurance rates are calculated based on many things which can substantially decrease or increase your annual premium. That is why it is so important to perform an extensive rate comparison to get the lowest car insurance rates for drivers with bad credit. Insurance prices are calculated by many things and change dramatically, so the best option three years ago may now be one of the more expensive options.
Find Cheaper Car Insurance with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Safeco | $780 |
| 2 | The Hartford | $873 |
| 3 | Auto-Owners | $932 |
| 4 | Allied | $949 |
| 5 | Farm Bureau Mutual | $990 |
| 6 | Nationwide | $1,007 |
| 7 | Farmers Mutual of Nebraska | $1,009 |
| 8 | American National | $1,054 |
| 9 | State Farm | $1,065 |
| 10 | General Casualty | $1,092 |
| 11 | USAA | $1,150 |
| 12 | California Casualty | $1,270 |
| 13 | American Family | $1,284 |
| 14 | MetLife | $1,293 |
| 15 | Iowa Mutual | $1,295 |
| 16 | EMC | $1,300 |
| 17 | GEICO | $1,308 |
| 18 | Progressive | $1,417 |
| 19 | Farmers | $1,602 |
| 20 | North Star | $1,693 |
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Safeco has some of the lowest car insurance rates in Omaha at around $780 a year. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual also qualify as some of the cheapest Omaha, NE auto insurance companies.
As illustrated above, if you have coverage with Allied and switched to Safeco, you might realize annual savings of in the neighborhood of $169. Drivers with Farm Bureau Mutual might save as much as $210 a year, and Nationwide customers might see rate reductions of $227 a year.
To find out how much you can save, click here to start your free quote or quote rates from the companies below.
Remember that these estimates are averages across all types of insureds and vehicles and are not factoring in a specific vehicle garaging location for drivers with bad credit. So the company that can offer you the best rate may not even be in the top 24 companies shown above. That point stresses why you need to compare as many prices as possible using your own specific driver information and vehicle.
The vehicle model you are buying coverage for is one of the biggest factors when quoting the best cheap car insurance for drivers with bad credit. Vehicles with average performance, advanced safety features, or a low likelihood of liability claims will cost less to insure than adrenaline junky models. The next table illustrates auto insurance rates for the most cost-effective vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Toyota Prius | $1,133 |
| Ford Explorer XLT AWD | $1,151 |
| Honda CR-V LX 2WD | $1,177 |
| Toyota Tacoma 2WD | $1,190 |
| Chevrolet Impala LS | $1,195 |
| Ford Escape XLT 2WD | $1,257 |
| Toyota Camry SE | $1,278 |
| Ford Edge Limited AWD | $1,285 |
| Chevrolet Equinox LTZ AWD | $1,301 |
| GMC Sierra SLT Crew Cab 2WD | $1,306 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,379 |
| Chevrolet Silverado LS Regular Cab 2WD | $1,393 |
| Dodge Grand Caravan CV | $1,409 |
| Dodge Ram 3500 Mega Cab SLT 2WD | $1,417 |
| Dodge Ram 2500 Crew Cab ST 4WD | $1,411 |
| Honda Civic LX-S 4-Dr Sedan | $1,439 |
| Honda Odyssey EX | $1,457 |
| GMC Sierra 2500HD SLT Crew Cab 2WD | $1,473 |
| Volkswagen Jetta 2.0T Station Wagon | $1,475 |
| Toyota RAV4 Limited 4WD | $1,487 |
| Chevrolet Malibu Hybrid | $1,497 |
| Jeep Grand Cherokee SRT-8 4WD | $1,489 |
| Ford F-150 Lariat Crew Cab 2WD | $1,517 |
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Data rating is based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include multi-vehicle, claim-free, safe-driver, homeowner, and multi-policy. Estimates do not factor in your specific Omaha, NE location which can alter coverage prices substantially.
Based upon these rates, we can tell that cars like the Toyota Prius, Ford Explorer, and Honda CR-V should be some of the cheaper vehicles to insure for people with poor credit. The price of auto insurance will be higher anyway because there is more claim risk for drivers with bad credit, but generally speaking those makes and models will tend to have the cheapest rates that you’ll find.
One of the many components that determine car insurance rates is where you keep your vehicle. Areas with increased crime or more people tend to have higher rates, whereas less populated areas can boast about having cheaper rates.
The following table shows the most expensive cities in Nebraska for drivers with bad credit to purchase car insurance in. Omaha is ranked #10 with an annual rate of $1,220 for the average policyholder, which is around $102 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Scottsbluff | $1,374 |
| 2 | Gering | $1,357 |
| 3 | Alliance | $1,354 |
| 4 | South Sioux City | $1,303 |
| 5 | McCook | $1,292 |
| 6 | Lexington | $1,277 |
| 7 | North Platte | $1,262 |
| 8 | Kearney | $1,224 |
| 9 | Beatrice | $1,222 |
| 10 | Omaha | $1,220 |
| 11 | Nebraska City | $1,212 |
| 12 | Crete | $1,210 |
| 13 | Bellevue | $1,190 |
| 14 | Blair | $1,188 |
| 15 | Hastings | $1,182 |
| 16 | York | $1,180 |
| 17 | Seward | $1,179 |
| 18 | Fremont | $1,166 |
| 19 | La Vista | $1,162 |
| 20 | Grand Island | $1,158 |
| Compare Prices Now Go | ||
Annual rates are comparative as the specific Omaha residence address can raise or lower coverage prices significantly.
Liability rates compared to full coverage
Finding cheaper insurance is important to the majority of drivers, and one good way to lower the cost of insurance for drivers with bad credit is to not buy comprehensive and collision coverage. The illustration below illustrates the difference between insurance premiums with liability coverage only compared to full coverage. The premium estimates are based on no tickets, no at-fault accidents, $100 deductibles, single marital status, and no additional discounts are factored in.
If the expense is averaged for all age categories, physical damage insurance costs $2,305 per year more than insuring for liability only. That raises the question if paying for full coverage is a waste of money. There is no set rule to delete comprehensive and collision coverage on your policy, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is more than about 10% of the replacement cost of your vehicle minus the policy deductible, the it may be a good time to stop paying for full coverage.
Discount Omaha insurance
Car insurance companies that offer coverage for drivers with bad credit could also offer rate discounts that can lower rates by 40% or more if you are eligible. A list of insurance companies and some of their more popular discounts are:
- State Farm may include discounts for student away at school, accident-free, driver’s education, Drive Safe & Save, anti-theft, and multiple autos.
- Farmers Insurance has savings for switch companies, homeowner, early shopping, teen driver, multi-car, electronic funds transfer, and good student.
- GEICO offers discounts including membership and employees, military active duty, emergency military deployment, multi-policy, anti-lock brakes, and air bags.
- American Family may offer discounts for mySafetyValet, multi-vehicle, good driver, defensive driver, and TimeAway discount.
- Nationwide offers premium reductions for anti-theft, good student, defensive driving, Farm Bureau membership, accident-free, and family plan.
- Progressive offers discounts for good student, homeowner, online signing, multi-vehicle, online quote discount, and continuous coverage.
The example below compares annual premium costs with and without some available policy discounts. The premiums are based on a female driver, a clean driving record, no claims, Nebraska state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with marriage, defensive driving course, safe-driver, claim-free, homeowner, and multiple vehicle discounts applied. In this example, theaverage yearly reduction on insurance for drivers with bad credit is 27% or $449.
Here’s why you should compare rates often
Nebraska insurance rates are impacted by many things that will increase or decrease the price of coverage. Getting older, having a teen driver, or getting into an accident may prompt premium changes that may make certain companies cheaper than before. Not only may your risk profile change, but insurers change rates as often as every quarter in order to remain profitable. An unexpected high level of claims can result in rate increases, while lower claim levels can cause lower-cost Omaha car insurance rates.
To illustrate this example, the data below shows a variety of companies that have the cheapest car insurance in Omaha, NE for a 30-year-old male driver with no prior claims, no tickets, and a good credit rating. If we compare prices based on his current risk profile, Safeco may offer the lowest car insurance rates in Omaha at $933 a year. This is $383 less than the average price paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual are the remainder of the best Omaha, NE auto insurance companies.
The chart below compares rates after we give the driver in the first chart an accident surcharge, slightly worse credit, and a traffic ticket or two. Because every insurance company uses their own formula to set their prices, comparing quotes could now result in a different list of companies as shown below.
Nationwide now has the cheapest car insurance in Omaha with American National, State Farm, General Casualty, and USAA now being in the top five. This shows why consumers need to take the time to shop around when trying to get the best auto insurance quotes for drivers with bad credit. Auto insurance prices can be determined by many factors and can increase or decrease at any time, so the most economical option when you last compared rates may now be one of the more expensive options.