The words “bargain” and “auto insurance” really should not be used together, especially when you are looking for the lowest insurance prices for drivers with bad credit. In an attempt to save some money, let’s get started by showing you some of the things the can have a considerable influence on car insurance premiums, and find out if you can take the bite out of your next policy.
Comparing quotes for cheap auto insurance is not always easy, and determining which company quotes the cheapest auto insurance rates for drivers with bad credit will take a little more work.
Each company has their own unique process for determining rates, so let’s take a look at the auto insurance companies with the overall cheapest rates in Wisconsin.
Best Insurance Companies with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $604 |
| 2 | Partners Mutual | $632 |
| 3 | Erie | $696 |
| 4 | Rural Mutual Insurance | $749 |
| 5 | Pekin Insurance | $752 |
| 6 | Nationwide | $752 |
| 7 | Rockford Mutual | $754 |
| 8 | Integrity Mutual | $794 |
| 9 | Western National | $801 |
| 10 | Travelers | $804 |
| 11 | State Farm | $896 |
| 12 | General Casualty | $926 |
| 13 | West Bend Mutual | $926 |
| 14 | Auto Club Group | $939 |
| 15 | The Hartford | $950 |
| 16 | American Family | $1,125 |
| 17 | Progressive | $1,152 |
| 18 | Auto-Owners | $1,160 |
| 19 | Farmers | $1,165 |
| 20 | GEICO | $1,226 |
| Compare Rates Now Go | ||
USAA quotes some of the most affordable car insurance rates in Madison at around $604 annually. This is $557 less than the average rate paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rural Mutual Insurance, and Pekin Insurance also make the cut as some of the most economical Madison, WI insurance companies.
As the example above demonstrates, if you are a customer of Erie and switched to USAA, you may realize yearly savings of around $92. Customers with Rural Mutual Insurance might save as much as $145 a year, and Pekin Insurance insureds might lower prices by $148 a year.
To get a quick, customized rate comparison, click here to start your free quote or visit any of the low-priced companies below.
Understand that those rates are averaged across all ages of drivers and types of vehicles and do not take into consideration a specific zip code for drivers with bad credit. So the company that can offer the best rates for your situation may not even be in the list above. That affirms the importance of why you need to get rate quotes using your own driver information and specific vehicle type.
For people with poor credit, one of the big components that are looked at to help calculate auto insurance rates is where you keep your vehicle in Madison. Cities with more crime and/or more people are more likely to have higher rates, whereas more rural areas benefit from lower coverage costs.
The next table shows the most expensive cities in Wisconsin for drivers with bad credit to buy auto insurance in. Madison shows up at #14 with the yearly price of $1,040 for car insurance, which is approximately $87 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Milwaukee | $1,354 |
| 2 | Wauwatosa | $1,305 |
| 3 | West Allis | $1,234 |
| 4 | Greenfield | $1,204 |
| 5 | Oak Creek | $1,190 |
| 6 | Kenosha | $1,182 |
| 7 | Racine | $1,181 |
| 8 | Beloit | $1,130 |
| 9 | Franklin | $1,129 |
| 10 | Waukesha | $1,054 |
| 11 | La Crosse | $1,053 |
| 12 | Janesville | $1,053 |
| 13 | Eau Claire | $1,049 |
| 14 | Madison | $1,040 |
| 15 | Wausau | $1,037 |
| 16 | Brookfield | $1,035 |
| 17 | New Berlin | $1,029 |
| 18 | Menomonee Falls | $1,026 |
| 19 | Manitowoc | $997 |
| 20 | Fond du Lac | $995 |
| 21 | Oshkosh | $989 |
| 22 | West Bend | $987 |
| 23 | Green Bay | $941 |
| 24 | Appleton | $926 |
| 25 | Sheboygan | $925 |
| Compare Rates Now Go | ||
Premium amounts are approximated as the specific garaging location can impact auto insurance rates noticeably.
Rate increases following a ticket or accident
A great way to snag affordable auto insurance rates in Wisconsin for people with poor credit is to drive carefully and avoid tickets and accidents. The illustration below illustrates how traffic citations and fender-benders can raise auto insurance rates for different age groups. The premium estimates are based on a married male driver, full coverage, $250 deductibles, and no discounts are applied to the premium.
The data charted above shows the average cost of auto insurance in Wisconsin per year with no accidents or violations is $1,042. Add in one speeding ticket and the average cost jumps to $1,193, an increase of $151 each year. Then add two accidents along with the one speeding ticket and the yearly cost of auto insurance for drivers with bad credit goes up to an average of $2,513. That’s an increase of $1,471, or $123 per month, just for not driving safely!
Full coverage versus liability only rates
Reducing premiums for auto insurance should be important to the majority of vehicle owners, and one common way to lower the cost of insurance for drivers with bad credit is to buy only liability coverage. The illustration below visualizes the comparison of insurance prices with liability coverage only compared to full coverage. The prices are based on no tickets, no at-fault accidents, $500 deductibles, drivers are not married, and no discounts are taken into consideration.
If all age groups are averaged, physical damage coverage on your policy costs $1,092 per year over and above liability only. That may make you wonder if paying for full coverage is a waste of money. There is no definitive formula to stop paying for full coverage, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is more than 10% of the vehicle’s replacement cost less your deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s replacement value is $6,500 and you have $1,000 deductibles. If your vehicle is severely damaged, you would only receive $5,500 after paying your policy deductible. If it’s costing in excess of $550 a year for full coverage, then you may need to consider dropping full coverage.
Auto insurance company ratings
Insuring your vehicle with the highest-rated car insurance company is hard considering how many choices you have in Wisconsin. The company information displayed below could help you analyze which car insurance companies to look at buying from.
These rankings are only comprised of companies that insure vehicles across America, so companies that have a smaller presence will not be included in the list. To compare prices from the insurers below and more, click here.
Top 10 Large Auto Insurance Providers in Madison Ranked by Customer Satisfaction
- USAA – 92%
- Erie Insurance – 88%
- American Family – 88%
- State Farm – 88%
- Nationwide – 88%
- 21st Century – 88%
- AAA Insurance – 87%
- Liberty Mutual – 87%
- Farmers Insurance – 87%
- The Hartford – 87%
Top 10 Large Auto Insurance Providers in Madison Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- State Farm – A++
- GEICO – A++
- Nationwide – A+
- Esurance – A+
- The Hartford – A+
- Erie Insurance – A+
- Progressive – A+
- Allstate – A+