You have most likely seen the captivating commercials from auto insurance companies like State Farm, Farmers, and The General that make claims of the cheapest price. So drivers just need to select the one with the best jingle, right?
It’s not that easy, however, as there are a lot of unknowns such as your age, the deductible level you need, if you are currently insured, and the amount of liability coverage you want, that all impact the cost of your policy. We will touch on these things and will hopefully give you a good start to your coverage search.
Finding good, low-cost insurance is challenging, and figuring out which company has the cheapest insurance rates for low credit scores calls for even more shopping around. Each auto insurance company has a proprietary method to determine rates, so let’s begin by taking a look at the lowest cost insurance companies in Oregon.
Cheap Insurance Rates in Oregon
|Rank||Company||Cost Per Year|
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Grange quotes some of the cheapest car insurance rates in Portland at around $694 each year. This is $784 less than the average policy premium paid by Oregon drivers of $1,478. Oregon Mutual, Country, Travelers, and USAA also qualify as some of the cheaper Portland, OR insurance companies.
As depicted above, if you are a policyholder with Oregon Mutual and switched to Grange, you might achieve yearly savings of approximately $125. Oregon drivers with Country may save as much as $153 a year, and Travelers customers might reduce prices by as much as $258 a year.
These prices are averaged for all types of drivers and the different vehicles they drive and do not take into consideration an exact zip code location for low credit scores. So the insurer that can offer you the best rate may not even be in the top 22 companies shown above. That illustrates why you need to get rate quotes using your own specific driver and vehicle information.
For bad credit, one of the largest components that are looked at to determine the cost of insurance is where your residence is in Portland. Areas with more people or even just a higher incidence of claims are more likely to have higher rates, whereas areas with less people or fewer weather incidents have the benefit of cheaper auto insurance prices.
The next table ranks the priciest cities in Oregon for low credit scores to buy auto insurance in. Portland is ranked #2 with an annual cost of $1,544 for the average policyholder, which is approximately $129 monthly.
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Table data uses approximated as the garaging address in Portland can alter insurance rates noticeably.
The vehicle model you are trying to insure is one of the largest factors that determines whether or not you find economical auto insurance for low credit scores. Vehicles with limited speed and performance, good crash test ratings, or low incidents of liability claims will cost less to insure than high performance models.
The next table ranks car insurance rates for a handful of the most affordable vehicles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$1,681|
|Chevrolet Impala LS||$1,698|
|Dodge Grand Caravan Hero||$1,731|
|Volkswagen Jetta S 4-Dr Sedan||$1,738|
|Chevrolet Malibu LT||$1,764|
|Jeep Wrangler Unlimited Sport 4WD 4-Dr||$1,794|
|Honda CR-V LX 2WD||$1,797|
|Honda Accord EX-L 4-Dr Sedan||$1,819|
|Chevrolet Equinox LTZ AWD||$1,854|
|Kia Optima LX||$1,857|
|Ford Edge SEL AWD||$1,948|
|Hyundai Elantra SE Touring Station Wagon||$1,953|
|GMC Sierra SLT Crew Cab 4WD||$1,981|
|Toyota Camry Hybrid||$1,989|
|Jeep Grand Cherokee Laredo 4WD||$1,984|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$2,022|
|Ford Explorer Eddie Bauer 4WD||$2,028|
|Dodge Ram Quad Cab ST 2WD||$2,028|
|Toyota Corolla XRS||$2,126|
|Toyota RAV4 Sport 2WD||$2,133|
|Toyota Camry LE||$2,126|
|Ford Fusion SE 4-Dr Sedan||$2,135|
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Prices above based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Oregon minimum liability limits. Discounts applied include multi-policy, multi-vehicle, claim-free, safe-driver, and homeowner. Rate information does not factor in vehicle garaging location which can impact coverage rates significantly.
Based upon the table data, we can tell that cars like the Toyota Prius, Ford Escape, Chevrolet Impala, Dodge Grand Caravan, and Volkswagen Jetta will be a few of the most budget-friendly vehicles to insure for bad credit.
The example below demonstrates how choosing different deductibles can impact insurance rates when quoting cheap insurance for low credit scores. The data assumes a single male driver, comprehensive and collision coverage, and no discounts are applied.
A 50-year-old driver could pocket $356 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $534 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, can cut up to $1,186 annually by choosing larger deductibles on their policy.
If you make the decision to raise deductibles, it’s a good idea to have enough in a savings account to be able to cover the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Rate difference between full and liability-only coverage
Paying a lower price for insurance is probably important to the majority of drivers, and an easy way to save on the cost of insurance for low credit scores is to only buy liability insurance. The chart below illustrates the comparison of annual premium costs when comparing full coverage to liability only. The price estimates are based on no violations or accidents, $100 deductibles, single marital status, and no policy discounts are applied.
Averaged for all ages 20 through 70, full coverage on your policy costs $2,498 per year more than just buying liability insurance. At some point, every insured wonders if you should buy full coverage. There is no exact formula to eliminate full coverage on your policy, but there is a general convention. If the annual cost of comprehensive and collision coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then you might want to think about dropping full coverage.
There are some scenarios where dropping full coverage is not a good idea. If you still have a lienholder on your title, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if you don’t have enough money to buy a different vehicle in case of an accident, you should keep full coverage on your policy.
Buying coverage from the right auto insurance provider can be difficult considering how many choices you have in Oregon. The rank data in the lists below can help you select which companies you want to consider comparing rates from. The ratings below are for the largest auto insurers in America, so companies that have a smaller presence are not included in the list.
Top 10 Major Auto Insurance Companies in Portland Ranked by Claims Service
- State Farm
- AAA Insurance
- Liberty Mutual
- The Hartford
- The General
- 21st Century
Ideas to find budget-friendly car insurance for low credit scores
Here are many thrifty suggestions that can help you buy cheaper coverage.
- Earn discounts for being claim-free
- Don’t waste money on full coverage for older vehicles
- Buying home and auto insurance together can earn discounts
- Improve your credit
- Buy a car with high safety ratings
- Increase deductibles to save money
- Compare rates often to find the best deal
That last tip is very significant, as was affirmed in the article above. Coverage rates in Portland fluctuate considerably, so don’t be afraid to change to a new company if you can save money. Many consumers stick with the same company and that’s fine, but it’s not recommended if it’s costing you money that could be spent on other things. In just a couple of minutes you could compare rates to find cheaper auto insurance for low credit scores.