Who Has the Cheapest Auto Insurance for Low Credit Scores in New Orleans?

The words “bargain” and “insurance” really should not be used together, especially when shopping around for the best car insurance rates for low credit scores. In an attempt to save some money, let’s take a look at a few of the factors that have an impact on car insurance premiums, and figure out some ideas to take the bite out of the next policy you buy.

Establishing which companies quote the best car insurance rates for low credit scores will take a bit more effort in order to find a policy that fits your budget.

Every insurance company has a unique approach for determining rates, so let’s take a look at the most competitive car insurance companies in New Orleans.

Lowest Insurance Price Quotes in Louisiana

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USAA offers some of the most affordable car insurance rates in New Orleans at around $1,594 annually. This is $820 less than the average price paid by Louisiana drivers of $2,414. MetLife, GEICO, Progressive, and Safeway also qualify as some of the best New Orleans, LA insurance companies.

In the above example, if you are a policyholder with Progressive and switched to MetLife, you might achieve a yearly price reduction of in the neighborhood of $113. Customers with Safeway could save as much as $262 a year, and Southern Farm Bureau customers might reduce prices by as much as $289 a year.

To compare your rates to other Louisiana insurance companies, click here to start a quote or quote prices from the following companies.

These estimates are averages across all types of drivers and the different vehicles they drive and do not take into consideration a specific vehicle garaging location for low credit scores. So the insurer that can offer you the lowest price may not even be in the top 12 companies shown above. That helps illustrate why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.

The make and model of vehicle you are insuring is one of the biggest factors in finding the best insurance for low credit scores. Vehicles with lots of speed or power, poor passenger safety features, or a history of substantial liability claims will cost quite a bit more to insure than safer, lower-performance models. The next table shows coverage costs for a number of the most cost-effective automobiles to insure in Louisiana.

Table data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include safe-driver, claim-free, homeowner, multi-policy, and multi-vehicle. Premium amounts do not factor in New Orleans, LA location which can modify coverage rates substantially.

Looking at the rates, we can assume that vehicles like the Honda Accord, Honda CR-V, Ford Escape, and Toyota Prius will be a few of the cheapest vehicles to insure for bad credit.

For bad credit, one of the more important things that are looked at to determine insurance cost is your address. Larger areas are more likely to pay higher prices, whereas areas with less people or fewer weather incidents have the benefit of cheaper car insurance.

The next table lists the most expensive places in Louisiana for low credit scores to purchase a policy in. New Orleans ranks #1 with an annual premium of $2,914 for the average policyholder, which is approximately $243 each month.

Premium costs are comparative as the garaging address in New Orleans can increase or decrease auto insurance rates greatly.

Impact of violations and accidents on rates

In a perfect world, the best way to score cheap car insurance prices in New Orleans for bad credit is to drive safe and avoid traffic citations and accidents. The example below illustrates how traffic citations and at-fault collisions increase insurance costs for each different age category. The costs are based on a single male driver, full physical damage coverage, $100 deductibles, and no policy discounts are applied.

The data charted above shows the average cost of a car insurance policy in New Orleans per year with no accidents or violations is $2,655. Get written up for two speeding tickets and the average cost jumps to $3,526, an increase of $871 each year. Now add in one accident along with the two speeding tickets and the annual cost of car insurance for low credit scores jumps again to an average of $4,398. That’s an increase of $1,743, or $145 per month, just for not being a responsible driver!

The illustration below illustrates how your choice of deductibles can influence insurance rates when quoting cheap insurance for low credit scores. The rates are based on a married male driver, full physical damage coverage, and no discounts are taken into consideration.

In the chart above, a 30-year-old driver could lower their policy premium by $498 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $756 by switching to a $1,000 deductible. Young drivers, like the 20-year-old, can save $1,510 or even more just by using higher deductibles. When using a larger deductible, it is essential to have additional funds squirreled away to enable you to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.

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New Orleans, LA car insurance rates are determined by lots of factors which can significantly increase or decrease the cost of coverage. Turning one year older, having a teenage driver, or getting into an accident may prompt premium changes resulting in some rates now being more affordable than others.

In addition, auto insurance companies file new rates every year or even multiple times each year in order to offset underwriting gains or losses. Higher than normal claim frequency or severity can cause more expensive prices, while lower claim levels may result in more affordable New Orleans car insurance rates.

To help illustrate this point, the chart below shows the company with the cheapest car insurance in New Orleans, LA for a 40-year-old male driver with a good driving record, no prior claims, and great credit. If we estimate prices based on his current rating profile, USAA has the most affordable car insurance rates in New Orleans at $2,839 each year. This is $425 more than the average policy premium paid by Louisiana drivers of $2,414. MetLife, GEICO, Progressive, and Safeway are also on the list of the cheapest New Orleans, LA auto insurance companies.

In this next rate comparison, we will give the driver from the first example a claim surcharge, a little lower credit rating, and an imperfect driving record. Since each auto insurance company has their own guidelines for determining prices, analyzing rates may now result in a significantly different list of affordable companies as shown below.

Southern Farm Bureau now has the cheapest rate in New Orleans, LA with State Farm, USAA, Safe Auto, and GEICO now being in the top five. This example proves why Louisiana drivers need to shop around with many companies to find affordable auto insurance quotes for low credit scores. Insurance rates can be altered by many things and can increase or decrease at any time, so the cheapest rate two years ago may now be quite expensive.