Who Has the Cheapest Auto Insurance for Drivers with Bad Credit in Austin?

Figuring out which companies offer the most affordable car insurance rates for drivers with bad credit will take a bit more effort in order to find coverage that fits your budget.

Every car insurance company uses a different method to establish rates, so let’s look at the rankings for the lowest cost car insurance companies in Austin, TX.

Lowest Insurance Price Quotes with Bad Credit

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Texas auto insurance company rankings
Rank Company Cost Per Year
1 Travelers $1,010
2 USAA $1,084
3 Texas Farm Bureau $1,247
4 Germania Mutual $1,294
5 Esurance $1,379
6 California Casualty $1,396
7 State Farm $1,450
8 Mercury $1,461
9 Safe Auto $1,549
10 Nationwide $1,585
11 Progressive $1,715
12 Allstate $1,718
13 Amica $1,723
14 GEICO $2,072
15 Home State $2,155
16 MetLife $2,183
17 Unitrin $2,241
18 Encompass $2,255
19 21st Century $2,469
20 Titan $2,568
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Travelers quotes some of the best car insurance rates in Austin at around $1,010 annually. This is $894 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the more affordable Austin, TX insurance companies.

As the rates illustrate above, if you currently buy coverage from Germania Mutual and switched to USAA, you might see annual savings of in the neighborhood of $210. Customers with Esurance may save as much as $295 a year, and California Casualty policyholders might see rate reductions of $312 a year.

To find the cheapest rates for your vehicle, click here to start your custom quote or quote prices from the following companies.

Remember that these premium estimates are averaged for all types of drivers and the different vehicles they drive and do not factor in a vehicle location for drivers with bad credit. So the auto insurance company that fits your situation best may not even be in the list above. That illustrates why you need to get quotes using your own specific driver information and vehicle.

One of the many components that are looked at to help calculate the cost of insurance is the neighborhood you call home in Austin. Cities with more crime and/or more people will most likely have higher rates, whereas less populated areas receive better rates.

The table below sorts the most costly cities in Texas for drivers with bad credit in which to purchase auto insurance. Austin is listed at #14 with an annual cost of $1,676 for car insurance, which is around $140 monthly.

How much does car insurance cost in Austin, TX?
Rank City Average Per Year
1 McAllen $1,996
2 Brownsville $1,908
3 Amarillo $1,858
4 Dallas $1,855
5 Laredo $1,851
6 Garland $1,850
7 Houston $1,835
8 Pasadena $1,794
9 Mesquite $1,771
10 Grand Prairie $1,757
11 Lubbock $1,733
12 Irving $1,719
13 Beaumont $1,702
14 Austin $1,676
15 San Antonio $1,671
16 Fort Worth $1,653
17 Carrollton $1,647
18 Arlington $1,642
19 Corpus Christi $1,636
20 El Paso $1,632
21 Waco $1,569
22 McKinney $1,561
23 Plano $1,560
24 Killeen $1,533
25 Abilene $1,499
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Rate quotes are comparative as the specific area where the vehicle is garaged can lower or raise insurance rates greatly.

The vehicle to be insured is probably the most important factor when looking for cheaper insurance for drivers with bad credit. Vehicles with reasonable performance levels, a great safety record, or a positive history of liability claims will cost less to insure than fast, unsafe models.

The next table features car insurance prices for a handful of the most affordable automobiles to buy insurance for.

Cheapest Vehicles to Insure in Austin, TX
Make, Model, and Trim Level Estimated Cost for Full Coverage
Honda CR-V EX 4WD $942
Toyota Prius $1,024
Ford Focus S 4-Dr Sedan $1,071
Volkswagen Jetta 2.0T Station Wagon $1,082
Chevrolet Impala LT $1,091
Dodge Grand Caravan Hero $1,097
Honda Accord EX-L 4-Dr Sedan $1,100
Ford Escape Limited 4WD $1,123
Jeep Wrangler Sport Islander Package 4WD 2-Dr $1,147
Toyota Camry XLE $1,149
GMC Sierra 2500HD SLE Regular Cab 4WD $1,171
Kia Optima LX $1,180
Nissan Altima 2.5 4-Dr Sedan $1,197
Jeep Grand Cherokee Laredo 2WD $1,207
GMC Sierra SLE Crew Cab 2WD $1,197
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Data rating is based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, multi-vehicle, multi-policy, safe-driver, and claim-free. Prices do not factor in vehicle location which can decrease or increase auto insurance rates considerably.

Based upon the rates shown, cars like the Honda CR-V, Toyota Prius, and Ford Focus are likely to be the more affordable vehicles to insure for people with poor credit. The price for car insurance will tend to be higher just because there is more liability exposure for drivers with bad credit, but overall those specific models will have the best insurance prices that you’ll find.

Full coverage versus liability-only

Saving money when shopping for car insurance is the goal of the majority of vehicle owners, and a good way to find cheap insurance for drivers with bad credit is to not buy comprehensive and collision coverage. The illustration below visualizes the comparison of yearly insurance costs when comparing full coverage to liability only. The rates are based on no accidents or driving violations, $500 deductibles, drivers are not married, and no discounts are applied.

Averaged for all age groups, physical damage insurance costs an additional $2,393 per year more than just insuring for liability. Many people question if paying for full coverage is a waste of money. There is no clear-cut rule of when to exclude full coverage, but there is a guideline you can use. If the yearly cost of comp and collision coverage is more than about 10% of the replacement cost of your vehicle minus the policy deductible, then it could be time to drop full coverage.

For example, let’s pretend your vehicle’s settlement value is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company will settle for is $4,000 after paying the physical damage deductible. If you are paying in excess of $400 annually for comprehensive and collision coverage, then it may be the right time to buy liability only.

There are a few cases where only buying liability is not a good plan. If you haven’t paid off your loan, you have to carry full coverage to protect the lienholder’s interest in the vehicle. Also, if you don’t have enough money to buy a different vehicle in the even your car is totaled, you should not opt for liability only.

Discounts on Austin insurance rates

Save on car insurance for people with poor credit in AustinInsurance companies that offer quotes for drivers with bad credit may also give you premium discounts that may potentially lower prices by as much as 30% if you are eligible. A list of car insurance companies and a selection of discounts are included below.

The example below illustrates the difference between auto insurance costs with and without discounts applied to the rates. The data assumes a female driver, a clean driving record, no claims, Texas state minimum liability limits, comp and collision included, and $100 deductibles.

The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with multiple policy, defensive driving course, vehicle safety, claim-free, passive restraint, and homeowner discounts applied. When taking advantage of discounts, theaverage yearly reduction on car insurance for drivers with bad credit is 28% or $633.

Ending up with a highly-rated car insurance company can be rather challenging considering how many companies there are to choose from in Austin. The rank data shown below can help you decide which auto insurance companies to look at comparing rates from.

The rankings below include companies who write in the majority of U.S. states, so smaller companies are not factored into these rankings. To check prices from these and other companies in Texas, follow this link.

Top 10 Major Auto Insurance Companies in Austin Ranked by Customer Satisfaction

  1. USAA – 91%
  2. AAA Insurance – 90%
  3. Esurance – 90%
  4. Mercury Insurance – 89%
  5. Nationwide – 89%
  6. Travelers – 88%
  7. Progressive – 88%
  8. Safeco Insurance – 88%
  9. State Farm – 88%
  10. Allstate – 88%

Top 10 Major Auto Insurance Companies in Austin Ranked by A.M. Best Rating

  1. Travelers – A++
  2. USAA – A++
  3. GEICO – A++
  4. State Farm – A++
  5. Titan Insurance – A+
  6. Esurance – A+
  7. Progressive – A+
  8. The Hartford – A+
  9. Allstate – A+
  10. Nationwide – A+

If you wish to have professional advice when shopping for cheaper insurance for drivers with bad credit, the insurance agencies below can probably help you determine which insurance coverage will be best for you.

To find an Austin insurance agency nearest to you, click the button link following the list.

Herman Askew – State Farm Insurance Agent
13201 Pond Springs Rd #105Austin, TX 78729(512) 250-5533

Larry Evins – State Farm Insurance Agent
4534 West Gate Blvd #202Austin, TX 78745(512) 327-0303

Nationwide Insurance: James Gary Howe
3720 Far West Blvd #114Austin, TX 78731(512) 346-7645

Bridgette Hearne – State Farm Insurance Agent
3407 W Slaughter Ln bAustin, TX 78748(512) 441-3704

More Austin, TX insurance agents

How to find cheaper auto insurance for drivers with bad credit

The list below details many thrifty solutions that can help you buy low-cost car insurance.

The last tip is certainly critical, as we discussed in the prior information. Auto insurance rates change frequently, so don’t hesitate to switch carriers if a better rate can be found. Having a favorite company is fine, but is isn’t recommended if that stubbornness costs you a fortune every year. It only take a few minutes to shop around to find cheaper car insurance for drivers with bad credit in Austin.