The words “economical” and “insurance” really shouldn’t be used together, in particular when comparison shopping for the cheapest car insurance for low income drivers. In an attempt to save some money, let’s familiarize you with some of the things that help determine car insurance rates, and find a way to cut the cost of the next policy you buy.
The make and model of vehicle driven is a large factor when trying to find cheaper car insurance for low income drivers. Vehicles with higher performance, poor crash test ratings, or a track record of large liability claims will cost much more to insure than safer, lower-performance models.
The next table shows coverage rates for the more affordable automobiles to insure.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $1,245 |
| Honda Accord LX-P 4-Dr Sedan | $1,276 |
| Ford Escape XLT 4WD | $1,310 |
| Volkswagen Jetta 2.0T Station Wagon | $1,339 |
| Ford F-150 Lariat Crew Cab 2WD | $1,378 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $1,384 |
| Toyota Prius | $1,383 |
| Hyundai Elantra Blue 4-Dr Sedan | $1,393 |
| Chevrolet Impala LTZ | $1,419 |
| Ford Explorer Eddie Bauer 2WD | $1,427 |
| Dodge Grand Caravan SE | $1,433 |
| Ford Edge SE AWD | $1,440 |
| Chevrolet Silverado LS Crew Cab 4WD | $1,448 |
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Cost estimates assume married male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include claim-free, homeowner, safe-driver, multi-vehicle, and multi-policy. Premium costs do not factor in your specific Cleveland, OH location which can change premium rates substantially.
Looking at the data, vehicles like the Honda CR-V, Honda Accord, Ford Escape, and Volkswagen Jetta will be the cheaper vehicles to insure for poor drivers.
For poor drivers, one of the more important criteria that help determine insurance cost is where your residence is in Cleveland. Areas with high crime rates or more dense population tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims can boast about having cheaper rates.
The illustration below sorts the most costly cities in Ohio for low income drivers to buy auto insurance in. Cleveland is ranked at #4 having an annual price of $1,235 for the average policyholder, which is about $103 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Youngstown | $1,285 |
| 2 | Toledo | $1,267 |
| 3 | Columbus | $1,247 |
| 4 | Cleveland | $1,235 |
| 5 | Cincinnati | $1,222 |
| 6 | Cleveland Heights | $1,214 |
| 7 | Euclid | $1,164 |
| 8 | Akron | $1,123 |
| 9 | Dayton | $1,108 |
| 10 | Hamilton | $1,102 |
| 11 | Canton | $1,091 |
| 12 | Springfield | $1,072 |
| 13 | Middletown | $1,066 |
| 14 | Newark | $1,063 |
| 15 | Fairfield | $1,063 |
| 16 | Lakewood | $1,041 |
| 17 | Mansfield | $1,032 |
| 18 | Cuyahoga Falls | $1,027 |
| 19 | Beavercreek | $1,027 |
| 20 | Kettering | $1,009 |
| 21 | Parma | $1,007 |
| 22 | Strongsville | $1,001 |
| 23 | Lorain | $985 |
| 24 | Mentor | $978 |
| 25 | Elyria | $975 |
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Premium costs are estimated as specific Cleveland zip code can affect insurance rates significantly.
Finding good, budget auto insurance is challenging, and figuring out which company has the most affordable insurance rates for low income drivers will take even more diligence.
Every insurance company uses their own method to determine rates, so we need to take a look at the insurance companies with the most affordable rates in Cleveland, OH. It’s important to understand that Ohio insurance rates are calculated based on many things which can substantially change the cost of coverage. Simply turning a year older, having a teenage driver, or getting a couple of tickets may cause policy rate changes resulting in some companies being higher-priced than the competition.
Best Insurance Companies in Ohio
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $647 |
| 2 | Erie | $687 |
| 3 | Allied | $690 |
| 4 | Frankenmuth | $708 |
| 5 | Travelers | $712 |
| 6 | USAA | $719 |
| 7 | Cincinnati Insurance | $749 |
| 8 | Merchants Insurance Group | $755 |
| 9 | General Casualty | $813 |
| 10 | Motorists Mutual | $824 |
| 11 | Grange Mutual | $828 |
| 12 | Hastings Mutual | $858 |
| 13 | Central Mutual | $866 |
| 14 | State Farm | $885 |
| 15 | Atlantic States | $931 |
| 16 | Westfield | $936 |
| 17 | Progressive | $953 |
| 18 | Western Reserve | $970 |
| 19 | Auto-Owners | $998 |
| 20 | Farmers | $1,005 |
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Utica National generally has some of the cheapest car insurance rates in Cleveland at around $647 annually. This is $393 less than the average rate paid by Ohio drivers of $1,040. Erie, Allied, Frankenmuth, and Travelers also are some of the more affordable Cleveland, OH auto insurance companies.
In the above example, if you are currently insured with Travelers and switched to Erie, you may realize a yearly savings of about $25. Policyholders with USAA might save as much as $32 a year, and Cincinnati Insurance customers might reduce rates by $62 a year.
Bear in mind that those premiums are averaged for all types of insureds and vehicles and do not take into consideration a vehicle location for low income drivers. So the auto insurance company that fits you best may not even be in the list above. That point stresses why you need to get rate quotes using your own driver and vehicle profiles.
Full coverage or liability only
Reducing premiums for insurance is probably important to most drivers, and one way to buy cheap insurance for low income drivers is to not pay for full coverage. The diagram below shows the comparison of auto insurance rates with and without full coverage. The rate quotes are based on no driving violations, no at-fault accidents, $500 deductibles, drivers are single, and no discounts are applied.
As an average, physical damage coverage costs an additional $1,077 per year more than just buying liability only. At some point, almost every driver questions if full coverage is worth the money. There isn’t a written rule to drop full coverage, but there is a general convention. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost minus the deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s replacement cost is $8,000 and you have $1,000 deductibles. If your vehicle is destroyed, you would only receive $7,000 after you pay the deductible. If premiums are more than $700 a year to have full coverage, then you may want to consider only buying liability coverage.
There are some circumstances where dropping full coverage is not recommended. If you still have a lienholder on your title, you must maintain physical damage coverage as part of the loan conditions. Also, if you don’t have enough money to buy a different vehicle in the event your current vehicle is totaled, you should not drop full coverage.
Buying coverage from the right company is hard considering how many different companies there are to choose from in Ohio. The company rank data below could help you analyze which auto insurance companies to look at when comparing auto insurance rates for low income drivers.
These ratings are only comprised of the largest companies in America, so companies that only write business in Ohio or surrounding areas will not be included in these rankings. If you’d like to compare prices from these and other companies in Ohio, simply click here.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 99 | 100 | 90 | 92% | A++ | 97.4 |
| 21st Century | 89 | 86 | 100 | 88% | A | 92.7 |
| GEICO | 97 | 91 | 88 | 85% | A++ | 92.5 |
| Nationwide | 88 | 94 | 91 | 88% | A+ | 91.3 |
| AAA Insurance | 93 | 87 | 88 | 87% | A | 90.8 |
| Liberty Mutual | 91 | 91 | 92 | 87% | A | 90.7 |
| Safeco Insurance | 90 | 93 | 88 | 86% | A | 90.2 |
| State Farm | 91 | 94 | 80 | 88% | A++ | 90.2 |
| Travelers | 89 | 91 | 94 | 79% | A++ | 90.1 |
| American Family | 88 | 92 | 83 | 88% | A | 89.4 |
| Titan Insurance | 89 | 91 | 83 | 86% | A+ | 89.3 |
| Allstate | 90 | 90 | 84 | 85% | A+ | 89.1 |
| Progressive | 83 | 85 | 99 | 87% | A+ | 88.7 |
| Erie Insurance | 92 | 90 | 82 | 88% | A+ | 88.5 |
| The Hartford | 87 | 89 | 84 | 87% | A+ | 88 |
| Esurance | 84 | 88 | 85 | 83% | A+ | 86 |
| Farmers Insurance | 79 | 88 | 84 | 87% | A | 84.7 |
| The General | 88 | 80 | 85 | 80% | A- | 84.5 |
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Data Source: Insure.com Best Car Insurance Companies
How to get discounts on Cleveland insurance
Car insurance companies that sell policies for low income drivers may also offer special discounts that can reduce rates by as much as 25% or more if you meet certain criteria. The best insurance companies and some of their more popular discounts are shown below.
- 21st Century policyholders can earn discounts including 55 and older, automatic seat belts, driver training, early bird, anti-lock brakes, and teen driver.
- Progressive has discounts for online quote discount, good student, continuous coverage, online signing, homeowner, and multi-policy.
- State Farm offers discounts for Steer Clear safe driver discount, accident-free, multiple policy, good student, and Drive Safe & Save.
- Nationwide may have discounts that include anti-theft, accident-free, family plan, easy pay, and multi-policy.
- Esurance offers discounts including anti-lock brakes, renters, multi-car, anti-theft, Pac-12 alumni, DriveSense, and online shopper.
- The Hartford discounts include defensive driver, driver training, vehicle fuel type, air bag, bundle, anti-theft, and good student.
The chart below shows the comparison of annual premium costs with and without discounts. The premiums assume a female driver, a clean driving record, no at-fault accidents, Ohio state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with accident-free, multiple vehicle, passive restraint, claim-free, safe-driver, and anti-theft discounts applied. When these discounts are applied, theaverage yearly reduction on insurance for low income drivers is 28% or $465.
Here’s why price comparisons are so important
Cleveland, OH insurance rates are determined by lots of factors which can substantially decrease or increase the cost of coverage. Simply getting older, buying a different home, or getting a ticket for running a stop sign may prompt premium changes resulting in some companies being more affordable than before.
Not only may your risk profile change, but insurance companies file new Ohio auto insurance rates as often as every quarter as an adjustment for underwriting gains or losses. Unexpectedly high claims can result in higher priced premiums, while profitable underwriting can cause lower-priced Cleveland car insurance rates.
To illustrate this example, the data below shows which company has the cheapest car insurance in Cleveland, OH for a 45-year-old male driver with a clean driving record, no accidents, and great credit. If we estimate prices based on his personal profile, Utica National has the cheapest car insurance rates in Cleveland at $828 a year. This is $212 less than the average policy premium paid by Ohio drivers of $1,040. Allied, Erie, Frankenmuth, and Travelers are also included in the best Cleveland, OH auto insurance companies.
The example below compares rates after we give the driver from the first rate comparison an accident claim, a lower credit rating, and a blemish on his driving record. Since each auto insurer has a different formula to set premium rates, comparing prices most likely will result in a different ranking of the cheapest car insurance companies in Cleveland as shown below.
Cincinnati Insurance now has the lowest car insurance rate in Cleveland, OH with Merchants Insurance Group, General Casualty, Motorists Mutual, and Grange Mutual now being in the top five. This demonstrates why it is critical to shop around to get affordable insurance rates for low income drivers.
Prices can be altered by many risk factors and can increase or decrease at any time, so the best price the last time you checked may now cost much more than other companies.