How Much is Car Insurance for Drivers with Bad Credit in Minnesota?

When talking about auto insurance, the word affordable really shouldn’t be used anywhere in the article to describe car insurance prices. Please forgive the oxymoron, but cheap car insurance for drivers with bad credit does not exist. But don’t despair, because we can show you some ways you can find and buy coverage that you can afford.

Comparing quotes for reasonably-priced auto insurance is hard enough, and deciding which companies quote the cheapest car insurance rates for drivers with bad credit takes even more diligence. Insurance rates will be a little bit greater than the average rate in Minnesota, with the higher price attributed to the higher likelihood of claims that goes along with selling insurance for people with poor credit, but competitively-priced insurance may be achievable with some perseverence. Each insurance company uses a different method to set premium rates, so first let’s look at the rankings for the car insurance companies that tend to be cheaper in Minnesota.

Keep in mind that Minnesota car insurance rates are based on many factors which can significantly increase or decrease the price you pay for coverage. This price fluctuation is why it is critical to shop around with many companies to find the most budget-friendly auto insurance quotes for drivers with bad credit. Insurance rates are impacted by many different factors and can change without notice, so the lowest-price company the last time you shopped your coverage around may now be quite expensive.

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Travelers offers some of the most affordable car insurance rates in Minnesota at around $641 each year. USAA, Farm Bureau Mutual, Western National, and The Hartford also are some of the lowest-priced Minnesota insurance companies.

As illustrated above, if you currently have a policy with Farm Bureau Mutual and switched to Travelers, you could earn an annual premium reduction of roughly $188. Policyholders with Western National could save as much as $287 a year, and The Hartford policyholders might reduce rates by $295 a year.

Understand that those premium estimates are averaged across all insureds and vehicles and are not factoring in a rate increase for drivers with bad credit. So the auto insurance company that fits your age and vehicle best may not even be in the company chart above. That helps illustrate why you need to compare rates from multiple companies using your own individual information.

For people with poor credit, one of the largest things that car insurance companies take into consideration when calculating the amount you pay for auto insurance is where you call home in Minnesota. Urban areas that are densely populated like Minneapolis, Maplewood, and Duluth are more likely to pay higher prices, whereas areas with less crime or weather claims have the enjoyment of a little cheaper coverage.

The illustration below rates the most expensive places in Minnesota for drivers with bad credit to buy car insurance in.

Price information shown is estimated as specific Minnesota garaging address can influence auto insurance rates substantially.

The vehicle requiring insurance is a large factor when comparing quotes for cheap auto insurance for drivers with bad credit in Minnesota. Vehicles with average performance, an excellent safety record, or low incidents of liability claims will cost less to insure than adrenaline junky models.

The data below illustrates auto insurance costs for a handful of the most economical automobiles to buy coverage for.

Data based on married female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include claim-free, homeowner, multi-policy, multi-vehicle, and safe-driver. Prices do not factor in specific location which can decrease or increase premium rates greatly.

Looking at the data, makes and models like the Honda Accord, Ford Explorer, Kia Forte, Hyundai Tucson, and Ford Escape should be the more affordable vehicles to insure for people with poor credit. The cost of auto insurance will be more costly because of the fact that there is more inherent risk for drivers with bad credit, but overall those vehicles will have the lowest prices possible.

Finding the right insurance company is hard considering how many different companies there are to choose from in Minnesota. The information listed below can help you select which insurers you want to consider purchasing from. The ratings below are for the largest auto insurers in America, so companies with more of a regional focus will not be included in the list.

Progressive, Allstate, Geico, and State Farm compared

When researching car insurance for people with poor credit in Minnesota, four companies to consider are Progressive, Allstate, Geico, and State Farm. When added together, they insure over 48% of the car insurance market in the United States. The next table compares and contrasts pricing and service ratings, plus some optional coverages shoppers can find with each company.