It’s impossible to miss the captivating ads from insurers like Nationwide and Farmers that make promises of dirt cheap rates, so you should just select the one with the best jingle, right?
It’s not that simple, unfortunately, as there are a whole bunch of unknowns such as what deductibles you want to use, if you need full coverage or just liability, and if you have ever had a coverage lapse. We will touch on the causes of high insurance rates and will hopefully give you a good start in finding the cheapest insurance in Dallas.
For bad credit, one of the more important factors that help determine the amount you pay each year for auto insurance is where you call home. Cities with larger populations or higher claim trends are more likely to have higher rates, whereas areas that tend to be more rural get the luxury of paying less.
The illustration below sorts the highest-priced areas in Texas for low credit scores to buy an auto insurance policy in. Dallas comes in at #3 with the annual price of $1,893 for coverage, which is about $158 each month.
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Prices are comparative as the specific zip code location can alter auto insurance rates substantially.
The vehicle on the policy is one of the biggest factors that determines the availability of the cheapest coverage for low credit scores. Vehicles with higher performance, a lack of modern safety features, or a track record of large liability claims will cost more to insure than safer, lower-performance models.
The next table ranks coverage costs for some of the cheaper vehicles to insure.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 4WD||$987|
|Ford Explorer Eddie Bauer 2WD||$1,079|
|Honda Accord EX 4-Dr Sedan||$1,103|
|Ford Escape XLS 2WD||$1,112|
|Nissan Altima 3.5 SR 4-Dr Sedan||$1,222|
|GMC Sierra SL Crew Cab 4WD||$1,232|
|Chevrolet Silverado LS Crew Cab 4WD||$1,222|
|Volkswagen Jetta SEL 4-Dr Sedan||$1,229|
|Ford F-150 STX Regular Cab 4WD||$1,230|
|GMC Sierra 3500HD SLE Extended Cab 2WD||$1,246|
|Ford Edge Limited 2WD||$1,273|
|Nissan Rogue SL AWD||$1,280|
|Toyota RAV4 Limited 4WD||$1,305|
|Ford F-250 XL Cabela Package 2WD||$1,313|
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Prices above based on married female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, safe-driver, multi-vehicle, multi-policy, and claim-free. Information does not factor in vehicle location which can affect coverage prices significantly.
Based upon the rates shown, models like the Honda CR-V, Ford Explorer, and Honda Accord are most likely to be some of the less-costly vehicles to insure for bad credit.
Finding decent, cost effective insurance is not easy, and deciding which company has the most affordable car insurance rates for low credit scores will require even more rate comparisons.
Every insurance provider has their own process to set policy rates, so to begin we’ll rank the car insurance companies that tend to have lower prices in Dallas, TX. It’s a good idea to know that Dallas car insurance rates are influenced by many factors that can increase the price of coverage. Things like getting older, buying higher coverage limits, or getting a reckless driving citation can cause premium changes that can make some companies more affordable than others.
Cheap Insurance Rates in Texas
|Rank||Company||Cost Per Year|
|4||Texas Farm Bureau||$1,247|
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Travelers offers some of the cheapest car insurance rates in Dallas at around $1,010 each year. USAA, Germania Mutual, Texas Farm Bureau, and California Casualty also rank well as some of the cheapest Dallas, TX car insurance companies.
In the rate table above, if you are insured with Germania Mutual and switched to Travelers, you may see savings of roughly $234. Policyholders with Texas Farm Bureau may save as much as $237 a year, and California Casualty policyholders might reduce prices by as much as $372 a year.
To see if you’re overpaying, click here to get a free quote or quote rates from the companies below.
Bear in mind that those premium estimates are averaged for all insureds and vehicles and are not factoring in a specific vehicle garaging location for low credit scores. So the company that fits your situation best may not even be in the top 23 companies in the list above. That is why you need to get car insurance quotes using your own personal information and vehicle type.
The diagram below shows how choosing a deductible can increase or decrease insurance rates when getting quotes for cheap insurance for low credit scores. The costs are based on a single male driver, comprehensive and collision coverage, and no policy discounts are applied.
A 50-year-old driver could lower rates by $314 a year by increasing from a $100 deductible up to a $500 deductible, or save $472 by selecting a $1,000 deductible. Younger drivers, like the 20-year-old, could shave as much as $1,026 every year by selecting a higher deductible.
When insureds make the decision to increase the deductibles on their policy, it is a good idea to have enough in a savings account to enable you to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Impact of careless driving on car insurance rates
In a perfect world, the ideal way to snag the best car insurance prices in Dallas for bad credit is to drive attentively and avoid traffic citations and accidents. The example below illustrates how traffic citations and fender-benders can affect insurance costs for each different age category. The rate quotes are based on a married male driver, comprehensive and collision coverage, $1,000 deductibles, and no other discounts are factored in.
The data above shows the average cost of a car insurance policy in Dallas per year with no accidents and a clean driving record is $1,358. Factor in one speeding ticket and the average cost jumps to $1,564, an increase of $206 each year. Now add in two accidents along with the one speeding ticket and the yearly cost of car insurance for low credit scores increases to an average of $3,497. That’s an increase of $2,139, or $178 per month, just for not being more responsible behind the wheel!
If you aren’t clear which coverage you need and would like to have professional advice when shopping for the best coverage for low credit scores, the agents shown below are a good start to provide answers to your questions and help you determine which car insurance policy is best.
To find a Dallas insurance agent nearest to you, click the button at the bottom of the list or click here to compare price quotes.
John Hamman – State Farm Insurance Agent
8330 Abrams Rd #104 – Dallas, TX 75243 – (214) 341-3050
5495 Belt Line Rd #333 – Dallas, TX 75254 – (972) 245-0266
12160 Abrams Rd – Dallas, TX 75243 – (972) 234-5588
Tips to find more affordable auto insurance for low credit scores
Here are some of the recommended money-saving ideas that can help you get lower-cost car insurance.
- Do not get tickets or violations
- Do not get into accidents
- Earn a discount by not filing claims
- Drivers with good credit often pay less
- Buy vehicles with good safety ratings
- Shop around for lower rates once a year
The final tip is especially vital, as we emphasized in the prior information. Auto insurance prices in Dallas can be adjusted at any time, so don’t be unwilling to buy from a new company if you find a better deal. Being loyal to a particular company is commendable, but is isn’t recommended if that dedication is costing money that could be going to better use. In just a couple of minutes you could shop around and find cheaper car insurance for low credit scores.