The words “economical” and “insurance” really should not be used together, especially when you are trying to find the best insurance rates for low income drivers. Let’s lead off by showing you a few of the things that have an effect on insurance premiums, and figure out some ways to lower the price of your next policy.
For poor drivers, one of the big considerations that are looked at to help calculate the amount you pay each year for auto insurance is where you keep your car. Cities with larger populations tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims have the luxury of lower rates.
The next table rates the most costly cities in Ohio for low income drivers to buy auto insurance in. Columbus is listed at #3 costing $1,247 on average, which is around $104 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Youngstown | $1,273 |
| 2 | Cleveland | $1,272 |
| 3 | Columbus | $1,247 |
| 4 | Toledo | $1,229 |
| 5 | Cleveland Heights | $1,214 |
| 6 | Euclid | $1,175 |
| 7 | Cincinnati | $1,174 |
| 8 | Akron | $1,123 |
| 9 | Dayton | $1,120 |
| 10 | Hamilton | $1,113 |
| 11 | Newark | $1,095 |
| 12 | Fairfield | $1,085 |
| 13 | Springfield | $1,072 |
| 14 | Middletown | $1,066 |
| 15 | Lakewood | $1,063 |
| 16 | Canton | $1,058 |
| 17 | Mansfield | $1,032 |
| 18 | Strongsville | $1,031 |
| 19 | Beavercreek | $1,027 |
| 20 | Parma | $1,027 |
| 21 | Kettering | $1,020 |
| 22 | Cuyahoga Falls | $997 |
| 23 | Elyria | $995 |
| 24 | Mentor | $978 |
| 25 | Lorain | $975 |
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Rate information is approximated as the vehicle garaging location can modify auto insurance rates substantially.
The car, truck, or SUV you are seeking coverage for is probably the largest consideration when comparison shopping for cheap auto insurance for low income drivers. Vehicles with average performance, modern passenger safety features, or a positive history of liability claims will cost significantly less to insure than high performance models.
The table below presents insurance costs for a selection of the most budget-friendly vehicles to insure in Ohio.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $1,264 |
| Honda CR-V EX 4WD | $1,292 |
| Honda Accord LX 4-Dr Sedan | $1,383 |
| Chevrolet Impala LT | $1,497 |
| Volkswagen Jetta LE 4-Dr Sedan | $1,502 |
| GMC Sierra SL Extended Cab 2WD | $1,497 |
| Toyota Prius | $1,538 |
| Ford Explorer XLT 4WD | $1,548 |
| Ford F-150 XL Super Cab 4WD | $1,553 |
| Jeep Grand Cherokee Limited 4WD | $1,604 |
| Honda Odyssey EX | $1,609 |
| Ford Edge SEL 2WD | $1,604 |
| Dodge Grand Caravan CV | $1,613 |
| Chevrolet Silverado LT Extended Cab 2WD | $1,604 |
| GMC Sierra 3500HD SLE Crew Cab 2WD | $1,631 |
| Chevrolet Equinox LT AWD | $1,637 |
| Toyota RAV4 Sport 2WD | $1,646 |
| Toyota Tacoma 2WD | $1,644 |
| Ford Focus SE 2-Dr Coupe | $1,682 |
| Hyundai Sonata SE 4-Dr Sedan | $1,689 |
| Chevrolet Malibu LS | $1,682 |
| Kia Optima SX | $1,710 |
| Ford F-350 Super Cab Lariat Turbo Diesel 2WD | $1,740 |
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Data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include multi-vehicle, claim-free, safe-driver, homeowner, and multi-policy. Rate quotes do not factor in specific location information which can raise or lower insurance rates substantially.
Looking at the data, models like the Ford Escape, Honda CR-V, Honda Accord, Chevrolet Impala, and Volkswagen Jetta should be a few of the most budget-friendly vehicles to insure for poor drivers.
Irresponsible driving raises your rates
In a perfect world, the ideal way to maintain the cheapest car insurance prices in Columbus for poor drivers is to pay attention while driving and not have accidents or get tickets. The illustration below highlights how traffic violations and at-fault claims drive up insurance costs for different ages of insureds. The information is based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are factored in.
In the example above, the average cost of an auto insurance policy per year with no accidents or violations is $1,308. Get two speeding tickets and the average cost hikes up to $1,735, an increase of $427 each year. Next add two accidents along with the two speeding tickets and the 12-month cost of car insurance for low income drivers increases to an average of $3,243. That’s an increase of $1,935, or $161 per month, just for not driving safely!
Liability-only versus full coverage
Buying cheaper car insurance is important to the majority of people, and an effective way to save on the cost of insurance for low income drivers is to buy liability only. The illustration below compares insurance prices with full physical damage coverage compared to only buying liability only. The premium estimates are based on no claims, a clean driving record, $500 deductibles, drivers are not married, and no discounts are applied.
If all age groups are averaged, full coverage on your policy costs $1,436 per year more than just buying liability only. That amount may make you wonder when is it a good idea to stop buying full coverage. There is no clear-cut rule to exclude physical damage insurance, but there is a broad guideline. If the yearly cost for physical damage coverage is 10% or more of any settlement you would receive from your insurance company, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement cost is $12,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $11,000 after the policy deductible has been paid. If premiums are more than $1,100 a year for your policy with full coverage, then it could be time to drop full coverage.
The diagram below illustrates how your deductible choice can raise or lower insurance costs when quoting cheap insurance for low income drivers. The data assumes a married male driver, full physical damage coverage, and no other discounts are factored in.
As shown above, a 50-year-old driver could cut expenses by $158 a year by switching from a $100 deductible up to a $500 deductible, or save $240 by changing to a $1,000 deductible. Even younger insureds, like the 20-year-old example, could roll back prices up to $528 or even more just by using higher deductibles.
When using a larger deductible, it will be necessary to have plenty of savings on hand to enable you to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Compare rates to save
Columbus car insurance rates are impacted by many things that will increase or decrease the price you pay for coverage. Simply having another birthday, buying a home instead of renting, or having an accident may cause policy rate changes that can now make some companies much cheaper than others.
Not only may things change on your end, but insurers modify pricing as needed to ensure their profitability. A period of increased losses can result in increased policy costs, while less frequent claims can cause cheaper Columbus car insurance rates.
As an example, the bar chart below shows which company has the cheapest car insurance in Columbus, OH for a 30-year-old male driver with no prior claims, no tickets, and a good credit history. If we compare prices based on his personal risk profile, Utica National may have the cheapest car insurance rates in Columbus at $828 a year. This is $212 less than the average premium paid by Ohio drivers of $1,040. Erie, Allied, Travelers, and Frankenmuth round out the rest of the most affordable Columbus, OH auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates an accident claim, a lower credit rating, and an imperfect driving record. Due to the fact that each insurance company has their own formula for establishing rates, analyzing rate quotes may now result in a slightly different list of affordable companies as shown below.
Cincinnati Insurance now has the cheapest car insurance in Columbus, OH with Merchants Insurance Group, Motorists Mutual, General Casualty, and Grange Mutual now rounding out the top five. This shows why Columbus drivers need to do a thorough rate comparison to find the best insurance quotes for low income drivers. Insurance rates are impacted by many factors and can increase or decrease at any time, so the cheapest company two years ago may now cost much more than other companies.