Finding car insurance with bad credit doesn't have to be a struggle. Learn more about how to save.
It can be tough to find cheap car insurance if you have bad credit. Car insurance companies use credit history as a primary rating factor, assigning their premiums based in part on drivers’ credit scores. Because auto insurance companies rely on data showing drivers with poor credit have a greater likelihood of filing car insurance claims, the companies compensate for this risk by assigning expensive rates.
How much you pay for car insurance with bad credit depends on where you live, which car insurance company you use, and an array of other rating factors. We've gathered below typical insurance premiums for drivers with bad credit in major New Jersey cities and rates from top auto insurance companies, along with tips to save on car insurance with bad credit in New Jersey.
Drivers in New Jersey pay a penalty of $1,591 per year for having a credit score at the low end of the scale. A driver in either the “poor” or “below fair to poor” credit tier will also pay higher-than-average rates.
|Credit Tier||Average Annual Rate in New Jersey|
|Below Fair to Poor||$2,641|
|Average — All Credit Tiers||$1,679|
Car insurance rates will also vary depending on the geographic area in which you drive. Car insurance companies rely on your address to estimate how likely you are to file a claim: the denser and claim-prone your immediate area is, the more expensive your rates will be.
Listed below are major New Jersey cities and their average car insurance rates for drivers with poor credit ratings.
|City||Average Annual Rate — Worst Credit||Average Annual Rate — Poor Credit||Average Annual Rate — Below Fair to Poor Credit|
Another contributing factor to how much you pay for auto insurance is the insurance company you buy from. Each and every car insurance company rates policies in a unique manner, giving rating factors varying weights in their calculations. Credit history can be a primary pricing differentiator between otherwise-similar car insurance companies. In New Jersey, the most affordable insurance company with bad credit is New Jersey Manufacturers Insurance, which offers a discount of $1,167 annually compared to the second-most affordable company, Progressive.
See below prices from leading auto insurance companies in New Jersey for drivers with bad credit.
|Company||Average Annual Rate — Worst Credit Tier|
|New Jersey Manufacturers Insurance||$1,870|
|Drive New Jersey Insurance Company||$3,675|
If you're having a hard time buying auto insurance with a low credit score, consider these tips: