Finding cheap auto insurance can be tough if you have bad credit. Auto insurance companies use credit tier as a primary rating factor, pricing policies based partially on drivers’ credit scores. Because auto insurers rely on data showing drivers with bad credit histories have a greater likelihood of filing auto insurance claims, they account for for this risk by assigning expensive rates.
Your car insurance costs 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 average car insurance rates for drivers with bad credit in major North Dakota cities and rates from popular auto insurance companies, followed by tips to save on auto insurance if you have a bad credit score in North Dakota.
Drivers in North Dakota pay an average penalty of $1,116 per year for having a credit score at the low end of the scale. Drivers in the "poor" or "below fair to poor" credit tiers will also face higher-than-average rates.
|Credit Tier||Average Annual Rate in North Dakota|
|Below Fair to Poor||$1,972|
|Average — All Credit Tiers||$1,230|
Your auto insurance rates will also depend on the specific area in which you live. Insurers look at your address to better understand your likelihood of filing a claim: the denser your area,, the more expensive rates you’ll pay.
Listed below are major North Dakota cities and their average car insurance rates for those with bad credit.
|City||Average Annual Rate — Worst Credit||Average Annual Rate — Poor Credit||Average Annual Rate — Below Fair to Poor Credit|
Another contributing factor to car insurance rates is the insurance company you select. Each and every car insurance company prices its policies in a different manner, giving rating factors varying weights in their pricing calculations. Credit can be a significant pricing differentiator between insurance companies. In North Dakota, the cheapest major insurance company with bad credit is Allied, which offers average savings of $151 yearly in comparison to the next-cheapest company, North Star Mutual.
See premiums from major auto insurance companies in North Dakota for drivers with bad credit.
|Company||Average Annual Rate — Worst Credit Tier|
|North Star Mutual||$1,815|
If you’re facing the prospect of buying auto insurance with a low credit score, keep these tips in mind: