Wouldn’t it be excellent if you could just magically know the one auto insurance company that has the cheapest car insurance rates for drivers with bad credit? It’s not that easy, however, as there are a whole slew of unknown aspects like whether you are single or married, whether you are male or female, your financial responsibility, and the number of miles you drive in a year, that all have an effect on the price. We will try to teach you about some of these things and will hopefully give you a good start in finding the cheapest insurance in Jersey City.
For people with poor credit, one of the largest things that are looked at to determine the price you pay for insurance is where you keep your car in Jersey City. Areas with high crime rates or more dense population tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims benefit from having to pay less for coverage.
The information below rates the most expensive places in New Jersey for drivers with bad credit to buy an auto insurance policy in. Jersey City is ranked #12 with an annual cost of $2,253 for car insurance, which is approximately $188 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Newark | $2,572 |
| 2 | West New York | $2,506 |
| 3 | East Orange | $2,495 |
| 4 | Union City | $2,450 |
| 5 | Elizabeth | $2,398 |
| 6 | Paterson | $2,376 |
| 7 | Kearny | $2,335 |
| 8 | Passaic | $2,325 |
| 9 | Hoboken | $2,283 |
| 10 | Clifton | $2,276 |
| 11 | Bayonne | $2,274 |
| 12 | Jersey City | $2,253 |
| 13 | Camden | $2,199 |
| 14 | Fort Lee | $2,123 |
| 15 | Atlantic City | $2,106 |
| 16 | Linden | $2,099 |
| 17 | Perth Amboy | $2,081 |
| 18 | Hackensack | $1,940 |
| 19 | Trenton | $1,916 |
| 20 | New Brunswick | $1,913 |
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Information shown are approximated as the specific garaging location can lower or raise rates noticeably.
Determining which company has the lowest-priced car insurance rates for drivers with bad credit will take a tad more effort in order to find the best price. Each auto insurer has a different process for setting prices, so let’s take a look at the overall cheapest car insurance companies in Jersey City, NJ.
Lowest Insurance Price Quotes with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | 21st Century | $1,078 |
| 2 | Travelers | $1,156 |
| 3 | New Jersey Manufacturers | $1,271 |
| 4 | Penn National | $1,325 |
| 5 | Palisades | $1,382 |
| 6 | The Hartford | $1,491 |
| 7 | California Casualty | $1,495 |
| 8 | Allstate | $1,523 |
| 9 | USAA | $1,553 |
| 10 | Mercury | $1,603 |
| 11 | Esurance | $1,838 |
| 12 | Amica | $1,869 |
| 13 | MetLife | $1,932 |
| 14 | Progressive | $1,938 |
| 15 | State Farm | $2,160 |
| 16 | GEICO | $2,174 |
| 17 | Encompass | $2,327 |
| 18 | Liberty Mutual | $2,978 |
| 19 | Hanover | $3,869 |
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21st Century may have some of the lowest car insurance rates in Jersey City at around $1,078 each year. This is $774 less than the average premium paid by New Jersey drivers of $1,852. Travelers, New Jersey Manufacturers, Penn National, and Palisades also make the cut as some of the cheapest Jersey City, NJ auto insurance companies.
In the above example, if you currently have coverage with Penn National and switched to 21st Century, you may see yearly savings of roughly $247. Customers with Palisades could save as much as $304 a year, and The Hartford policyholders might see rate reductions of $413 a year.
Remember that these policy rates are averaged across all drivers and vehicles and do not take into consideration a specific vehicle garaging location for drivers with bad credit. So the auto insurance company that fits your needs best may not even be in the top 19 companies shown above. That helps illustrate why you need to get quotes using your own specific driver information and vehicle.
The make and model of vehicle requiring insurance is one of the biggest factors that determines whether or not you can buy the cheapest car insurance for drivers with bad credit. Vehicles with higher performance characteristics, a lack of modern safety features, or a history of substantial liability claims will cost quite a bit more to insure than more economical and safe models. The table below shows insurance premiums for some of the cheaper automobiles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $1,299 |
| Honda Accord EX 4-Dr Sedan | $1,485 |
| Ford Escape Limited 2WD | $1,518 |
| Nissan Altima 2.5 4-Dr Sedan | $1,534 |
| Chevrolet Malibu LT | $1,562 |
| Ford Edge Sport AWD | $1,614 |
| Hyundai Elantra GLS 4-Dr Sedan | $1,620 |
| Chevrolet Silverado LS Regular Cab 4WD | $1,635 |
| Ford F-150 XL Super Cab 2WD | $1,644 |
| Toyota Corolla XRS | $1,643 |
| Nissan Rogue S 2WD | $1,648 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,656 |
| Dodge Grand Caravan SE | $1,668 |
| Honda Odyssey LX | $1,746 |
| Ford Fusion SEL AWD 4-Dr Sedan | $1,754 |
| Toyota Camry Hybrid | $1,756 |
| Toyota Prius | $1,769 |
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Cost estimates assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, claim-free, multi-vehicle, safe-driver, and multi-policy. Rate information does not factor in specific location which can impact premiums considerably.
Looking at the numbers, makes and models like the Honda CR-V, Honda Accord, and Ford Escape will be a few of the most economical vehicles to insure for people with poor credit. Prices will be more costly because there is more claim risk for drivers with bad credit, but overall those particular vehicles will tend to have the lowest insurance rates compared to other types of vehicles.
The diagram below illustrates how your choice of deductibles can impact insurance costs when getting quotes for cheap insurance for drivers with bad credit. The premiums are based on a married male driver, comprehensive and collision coverage, and no additional discounts are factored in.
In the chart above, a 40-year-old driver could cut expenses by $400 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $604 by using a $1,000 deductible. Even younger drivers, like the Age 20 chart data, have the ability to save $1,336 every year just by choosing higher deductibles. When using a larger deductible, it’s a good idea to have enough savings set aside to offset the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
Accidents and violations increase rates
The common sense way to score affordable car insurance rates in New Jersey for people with poor credit is to be a careful driver and avoid accidents and traffic citations. The illustration below illustrates how violations and accident claims can impact insurance rates for different age groups. The prices are based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are factored in.
In the previous chart, the average cost of auto insurance in New Jersey per year with no violations or accidents is $2,745. Receive one speeding ticket and the average cost increases to $3,092, an increase of $346 each year. Then add two accidents along with the one speeding ticket and the annual cost of car insurance for drivers with bad credit goes up to an average of $6,008. That’s an increase of $3,262, or $272 per month, just for not being more responsible behind the wheel!
How to find budget-friendly auto insurance for drivers with bad credit
Lowering your rates is not difficult, and here are many thrifty suggestions that can help New Jersey drivers find lower-cost car insurance.
- Buy a car with high safety ratings
- Save money by staying claim-free
- Serious violations like DUI or careless driving can make car insurance unaffordable
- Bundle home and auto and earn a discount
- Being accident-free can lower rates significantly
- Check for cheaper rates once a year
That last tip is extraordinarily significant, as we pointed out in this write-up. Insurance prices in Jersey City can change considerably based on profitability, so drivers shouldn’t be resistant to change to a new company if you can find a cheaper rate.
Many drivers have brand loyalty and that’s fine, but we do not recommend it if it’s costing you lots of money. In just a couple of minutes you could shop around to find cheaper insurance for drivers with bad credit.