The words “cheap” and “auto insurance” probably shouldn’t be used together, in particular when you are shopping around for the lowest insurance prices for drivers with bad credit. Because of the high cost, let’s get started by showing you some situations that have an effect on auto insurance rates, and find out if we can help you reduce the cost of your next policy.
Finding reliable, reasonably-priced auto insurance is not the easiest thing to do, and determining which company has the lowest-priced car insurance rates for drivers with bad credit may require even more rate comparisons. Every auto insurer has a proprietary method for determining prices, so first let’s look at the rankings for the overall cheapest car insurance companies in Tennessee.
Find the Cheapest Car Insurance with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $760 |
| 2 | Auto-Owners | $827 |
| 3 | Cincinnati Insurance | $884 |
| 4 | Penn National | $899 |
| 5 | Tennessee Farmers | $923 |
| 6 | USAA | $947 |
| 7 | Erie | $987 |
| 8 | Nationwide | $1,002 |
| 9 | Allied | $1,049 |
| 10 | Westfield | $1,079 |
| 11 | GEICO | $1,110 |
| 12 | Progressive | $1,178 |
| 13 | Travelers | $1,201 |
| 14 | The Hartford | $1,208 |
| 15 | State Farm | $1,213 |
| 16 | Direct General | $1,214 |
| 17 | State Auto | $1,217 |
| 18 | Shelter | $1,235 |
| 19 | 21st Century | $1,313 |
| 20 | Chubb | $1,316 |
| View More Rates Go | ||
Utica National may offer some of the lowest car insurance rates in Nashville at around $760 annually. This is $568 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers also rank well as some of the best Nashville, TN car insurance companies.
As depicted above, if you are a customer of Cincinnati Insurance and switched to Utica National, you might see an annual premium reduction of in the vicinity of $124. Customers with Penn National might save as much as $139 a year, and Tennessee Farmers customers might reduce rates by $163 a year.
To discover how much you can save, click here to begin a quote or click several companies below for low rates.
Understand that those premium estimates are averaged across all ages of drivers and types of vehicles and do not take into consideration an exact vehicle garaging location for drivers with bad credit. So the company that can offer the best rates for your situation may not even be in the top 30 companies shown above. That affirms the importance of why you need to get car insurance quotes using your own specific driver and vehicle information.
For people with poor credit, one of the more important things that are used to help calculate the annual cost of car insurance is where you keep your vehicle. Cities with larger populations or higher claim trends tend to have more expensive auto insurance rates, whereas more rural areas profit from lower rates.
The information below shows the highest-priced areas in Tennessee for drivers with bad credit in which to purchase auto insurance. Nashville comes in at #12 with an annual premium of $1,201 for coverage, which is about $100 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Memphis | $1,446 |
| 2 | Bartlett | $1,419 |
| 3 | Germantown | $1,374 |
| 4 | Collierville | $1,363 |
| 5 | Jackson | $1,266 |
| 6 | Oak Ridge | $1,260 |
| 7 | Knoxville | $1,230 |
| 8 | Columbia | $1,214 |
| 9 | Maryville | $1,208 |
| 10 | Clarksville | $1,206 |
| 11 | Spring Hill | $1,205 |
| 12 | Nashville | $1,201 |
| 13 | La Vergne | $1,186 |
| 14 | Smyrna | $1,183 |
| 15 | Brentwood | $1,179 |
| 16 | Morristown | $1,171 |
| 17 | Cookeville | $1,171 |
| 18 | Hendersonville | $1,170 |
| 19 | Murfreesboro | $1,148 |
| 20 | Franklin | $1,140 |
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Premium costs are estimated as specific Nashville garaging address can alter premiums considerably.
Cost comparison with and without full coverage
Paying a lower price for car insurance is the goal of most vehicle owners, and one good way to reduce the cost of insurance for drivers with bad credit is to not pay for full coverage. The diagram below illustrates the comparison of premium costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on no claims or driving citations, $100 deductibles, single marital status, and no discounts are taken into consideration.
If the expense is averaged for all age categories, physical damage coverage on your policy costs $2,220 per year over having just liability coverage. At some point, about every driver wonders if buying full coverage is a good investment. There is no clear-cut rule for phasing out comprehensive and collision coverage on your policy, but there is a broad guideline. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then you might want to consider buying only liability coverage.
For example, let’s pretend your vehicle’s book value is $11,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $10,000 after the policy deductible has been paid. If it’s costing you more than $1,000 a year for your policy with full coverage, then it may be the right time to buy liability only.
Discounts on Nashville car insurance
Insurers that offer coverage for drivers with bad credit may also offer special discounts that can reduce rates by as much as 35% if you are eligible for them. Large car insurance companies and some of the discounts are included below.
- GEICO discounts include membership and employees, emergency military deployment, multi-policy, multi-vehicle, military active duty, and daytime running lights.
- MetLife policyholders can earn discounts including good driver, accident-free, defensive driver, claim-free, good student, multi-policy
- State Farm may include discounts for Drive Safe & Save, multiple autos, safe vehicle, anti-theft, good driver, driver’s education, and defensive driving training.
- Progressive may offer discounts for good student, online quote discount, multi-policy, homeowner, and continuous coverage.
- Mercury Insurance offers discounts for anti-theft, low natural disaster claims, location of vehicle, professional/association, good student, and multi-policy.
- 21st Century has discounts for defensive driver, early bird, theft prevention, teen driver, air bags, and anti-lock brakes.
- Allstate offers premium reductions for early signing, good student, 55 and retired, eSmart discount, and resident student.
The illustration below illustrates the comparison of insurance costs with and without discounts applied. The costs are based on a female driver, no accidents or driving violations, Tennessee state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with homeowner, marriage, vehicle safety, multiple policy, passive restraint, and claim-free discounts applied. When taking advantage of discounts, the average savings per year on car insurance for drivers with bad credit is 28% or $535.
Finding the top car insurance provider is difficult considering how many different insurance companies sell coverage in Nashville. The ranking data displayed below may help you select which insurers you want to consider putting your business with. These rankings are only made up of companies with a national presence, so companies that only write business in Tennessee or surrounding areas will not be included in this list.
Top 10 Major Auto Insurance Providers in Nashville Ranked by Customer Satisfaction
- USAA – 91%
- AAA Insurance – 90%
- Esurance – 90%
- Nationwide – 89%
- Travelers – 88%
- Progressive – 88%
- Safeco Insurance – 88%
- State Farm – 88%
- Allstate – 88%
- The Hartford – 87%
Low rates today, overpriced tomorrow
Tennessee car insurance rates are influenced by many factors that control the cost of coverage. Simply improving your credit, adding a teenager to your policy, or getting a ticket for careless driving can trigger price changes that can now make some companies affordable when they were higher priced. Additionally, insurers change their prices every year or even multiple times each year as an adjustment for underwriting gains or losses. A period of higher than normal claims can result in higher prices, while a better claims history can result in lower-priced Nashville car insurance rates.
To illustrate this example, the bar chart below shows rates for the cheapest car insurance in Nashville, TN for a 40-year-old female driver with no prior accidents, a clean driving record, and good financial standing. When quoting prices based on her personal risk profile, Utica National may have the cheapest car insurance rates in Nashville at $863 per year. This is $465 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA are the remaining most affordable Nashville, TN auto insurance companies.
Now we will give the driver in the first chart an at-fault accident, poor credit, and a few blemishes on her driving record. Due to the fact that every insurance company has a proprietary method to determine rates, comparing prices most likely will result in a slightly different list of companies as shown below.
Erie now has the best insurance rate in Nashville with Allied, Nationwide, Westfield, and Auto-Owners now being in the top five. This example demonstrates why it is so important to perform an extensive rate comparison to get the most affordable car insurance rates for drivers with bad credit.
Rates are impacted by many things and change substantially, so the lowest-price company the last time you compared rates may now be an over-priced policy.
The professional agents shown below can most likely help you determine which insurance coverage will be best for you, since some people have coverage questions and would like to have a consultation when shopping around for cheaper insurance for drivers with bad credit. It’s not always easy to find the cheapest rate yourself, so agents can give you peace of mind knowing you have enough coverage if you have a claim.
To locate a Nashville auto insurance agent using an interactive map, click the button at the bottom or click here to get price quotes now.
- Affordable Insurance Agency
3225 Gallatin Pike – Nashville, TN 37216 – (615) 645-1900 - Jerry Matthews – State Farm Insurance Agent
2010 Old Murfreesboro Rd – Nashville, TN 37217 – (615) 361-1516 - Barbara Stewart – State Farm Insurance Agent
3055 Lebanon Pike #2103 – Nashville, TN 37214 – (615) 391-5300 - Wally Knox – State Farm Insurance Agent
5110 Delaware Ave – Nashville, TN 37209 – (615) 297-3527