Find affordable car insurance with bad credit by comparing rates.
It can be tough to find cheap auto insurance with bad credit. Auto insurers utilize credit score as a major rating factor, pricing policies based in part on drivers’ credit scores. Since auto insurance companies rely on data that show drivers with bad credit are more apt to file car insurance claims, the companies compensate for that extra risk by charging more expensive rates.
How much you pay for car insurance with a low credit score depends on where you live, which insurance company you use, and a variety of other factors. We've gathered below typical insurance rates for drivers with bad credit in major Minnesota cities and rates from a few of the most popular auto insurance companies, plus tips on how to save on car insurance with bad credit in Minnesota.
Drivers in Minnesota pay an average penalty of $1,350 each year for having a credit score at the low end of the scale. Drivers in either the “poor” or “below fair to poor” credit tier will also pay above-average rates for a car insurance policy.
|Credit Tier||Average Annual Rate in Minnesota|
|Below Fair to Poor||$2,146|
|Average — All Credit Tiers||$1,258|
Your auto insurance rates will also vary depending on the precise area in which you live. Insurers look at your address to better understand how likely you are to file an insurance claim: the denser and claim-prone your immediate area is, the more expensive your rates.
See below major Minnesota cities and their typical car insurance costs 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 factor that contributes to how much you pay for auto insurance is the auto insurance company you buy from. Each and every auto insurance company prices its policies differently, giving rating factors varying weights in their pricing calculations. Credit score can be a major price differentiator between otherwise-similar car insurance companies. In Minnesota, the most affordable insurance company for drivers with bad credit is North Star Mutual, which offers a discount of $39 per year in comparison to the second-cheapest company, American Family.
See prices from leading car insurance companies in Minnesota for drivers with bad credit.
|Company||Average Annual Rate — Worst Credit Tier|
|North Star Mutual||$1,992|
|Owners Insurance Company||$2,068|
If you're dealing with the difficulty of buying auto insurance with a low credit score, keep these tips in mind: