The words “low-cost” and “insurance” probably shouldn’t be used in the same sentence, specifically when you are shopping around for the best coverage prices for low credit scores. Because it’s so expensive, let’s introduce you to some of the factors that have a considerable impact on insurance prices, and see if you can cut the cost of the next policy you buy.
One of the many considerations that are looked at to help calculate the cost of insurance is where your car is garaged. Areas with a lot of weather claims or more people tend to have higher auto insurance costs, whereas areas with less people or fewer weather incidents have the benefit of cheaper car insurance.
The following table ranks the priciest cities in Hawaii for low credit scores to purchase a policy in. Honolulu is ranked at #21 having an annual price of $1,005 for coverage, which is approximately $84 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Hilo | $1,109 |
| 2 | Kailua | $1,062 |
| 3 | Royal Kunia | $1,057 |
| 4 | Waipahu | $1,057 |
| 5 | Ewa Beach | $1,057 |
| 6 | Ewa Gentry | $1,057 |
| 7 | Makakilo | $1,057 |
| 8 | Halawa | $1,047 |
| 9 | Wahiawa | $1,047 |
| 10 | Schofield Barracks | $1,047 |
| 11 | Mililani Town | $1,047 |
| 12 | Kihei | $1,026 |
| 13 | Pearl City | $1,016 |
| 14 | Waianae | $1,016 |
| 15 | Mililani Mauka | $1,016 |
| 16 | Waimalu | $1,016 |
| 17 | Nanakuli | $1,016 |
| 18 | Lahaina | $1,016 |
| 19 | Kapolei | $1,005 |
| 20 | Kaneohe | $1,005 |
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Rate quotes are comparative as the specific geographic location can modify coverage prices substantially.
The make and model of vehicle needing coverage is a significant factor when trying to find the cheapest coverage for low credit scores. Vehicles with lots of horsepower, a lack of advanced safety features, or high incidents of liability claims will cost significantly more to insure than safer models. The table below ranks auto insurance premiums for a selection of the most affordable vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $819 |
| Ford Escape XLT 2WD | $827 |
| Honda Accord EX-L 4-Dr Sedan | $891 |
| Toyota Tacoma 2WD | $950 |
| Toyota Camry LE | $968 |
| Nissan Altima 2.5 4-Dr Sedan | $973 |
| Toyota Prius | $993 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,017 |
| Ford Edge Sport AWD | $1,019 |
| Honda Odyssey EX-L | $1,024 |
| Chevrolet Silverado LS Extended Cab 2WD | $1,040 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,050 |
| Ford F-150 Lariat Crew Cab Platinum 4WD | $1,056 |
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Table data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Hawaii minimum liability limits. Discounts applied include homeowner, multi-policy, multi-vehicle, safe-driver, and claim-free. Estimates do not factor in specific Honolulu, HI garaging location which can influence premium rates noticeably.
Based on these rates, we can infer that models like the Honda CR-V, Ford Escape, and Honda Accord are likely to be some of the more affordable vehicles to insure for bad credit.
Establishing which companies offer the cheapest auto insurance rates for low credit scores involves a little more sweat than just getting one or two price quotes. Each insurer uses their own formula to determine premium rates, so we will examine the auto insurance companies with the overall cheapest rates in Hawaii.
It’s a good idea to know that Honolulu, HI auto insurance rates are impacted by many factors which can substantially decrease or increase the price you have to pay for coverage. Simply getting older, buying a new vehicle, or getting into an accident may prompt premium changes that can make some companies cheaper than others.
Cheapest Insurance Rates in Hawaii
USAA normally has some of the best car insurance rates in Honolulu at around $954 per year. This is $642 less than the average price paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive are also some of the most economical Honolulu, HI auto insurance companies.
As shown in the rates above, if you have coverage with Liberty Mutual and switched to State Farm, you may see an annual premium reduction of in the vicinity of $388. Hawaii drivers with Progressive could save as much as $532 a year, and Allstate policyholders might reduce prices by as much as $908 a year.
Bear in mind that those premiums are averages for all types of insureds and vehicles and are not factoring in a specific vehicle garaging location for low credit scores. So the company that fits you best may not even be in the list above. That points out the importance of why you need to get auto insurance quotes using your own personal information and vehicle type.
How accidents and tickets impact rates in Honolulu
A great way to find the most affordable auto insurance rates in Hawaii for bad credit is to pay attention while driving and avoid traffic citations and accidents. The example below demonstrates how speeding tickets and at-fault accidents can increase car insurance costs for different ages of insureds. The rates are based on a married male driver, full physical damage coverage, $250 deductibles, and no discounts are taken into consideration.
In the previous chart, the average cost of car insurance in Honolulu per year with no accidents and a clean driving record is $1,195. Add in two speeding tickets and the average cost surges to $1,645, an increase of $450 each year. Then add in one accident along with the two speeding tickets and the annual cost of auto insurance for low credit scores jumps again to an average of $2,094. That’s an increase of $899, or $75 per month, just for not driving attentively!
Do you need full coverage?
Finding the cheapest auto insurance should be important to the majority of vehicle owners, and one great way to buy cheap insurance for low credit scores is to buy only liability coverage. The chart below illustrates the difference between insurance rates with full physical damage coverage compared to only buying liability only. The data is based on a clean driving record, no at-fault accidents, $250 deductibles, drivers are single, and no discounts are taken into consideration.
Averaged out for all age groups, comprehensive and collision coverage on your policy costs an additional $1,895 per year over and above liability only. Lot’s of drivers question if paying for full coverage is worth it. There is no definitive formula of when to eliminate full coverage on your policy, but there is a guideline you can consider. If the yearly cost for physical damage coverage is 10% or more of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
How to get discounts on Honolulu car insurance
Insurance companies that provide coverage for low credit scores may also give you special discounts that can lower rates by as much as 35% or more if you are eligible. The best auto insurance companies and some of the discounts can be read below.
- State Farm includes discounts for accident-free, safe vehicle, student away at school, passive restraint, good driver, and good student.
- Progressive offers premium reductions for multi-vehicle, continuous coverage, good student, online signing, online quote discount, and multi-policy.
- Progressive discounts include multi-vehicle, online quote discount, good student, homeowner, and multi-policy.
- MetLife offers discounts including accident-free, good driver, defensive driver, claim-free, and multi-policy.
- Farm Bureau may have discounts that include multi-vehicle, safe driver, driver training, youthful driver, and 55 and retired.
- GEICO has discounts for anti-theft, anti-lock brakes, seat belt use, multi-policy, driver training, military active duty, and membership and employees.
- SAFECO policyholders can earn discounts including anti-theft, accident prevention training, bundle discounts, safe driver, drive less, and anti-lock brakes.
The example below illustrates the comparison of yearly insurance costs with and without discounts applied to the policy premium. The rates are based on a male driver, no claims or violations, Hawaii state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with accident-free, vehicle safety, passive restraint, claim-free, multiple policy, and defensive driving course discounts applied. With discounts applied, theamount saved on auto insurance for low credit scores is 28% or $378.
How to find the cheapest auto insurance for low credit scores
Here are a few money-saving ideas that can help you locate more affordable coverage.
- Drop full coverage on older vehicles
- Save money by observing traffic laws and speed limits
- Drive vehicles with five-star safety ratings
- Maintain a safe distance and avoid accidents
- Better credit rating means better rates
- Increase deductibles to save money
- Comparison shop at least once a year
That last tip is extraordinarily necessary, as was affirmed in this piece. Coverage prices adjust frequently, so don’t be afraid to switch carriers if you find a cheaper price.
Having brand loyalty is commendable, but we do not recommend it if it’s costing you a lot of money every month. If you have a few minutes, compare prices and find cheaper auto insurance for low credit scores in Honolulu.
The agents shown below are a good start to help you make a decision which coverages are best, as some drivers aren’t sure which coverage they need and prefer to have some professional guidance when comparing insurance rates for bad credit. It’s not always easy to find the best coverage on your own, and using a licensed agent can give peace of mind knowing your policy gives you suitable coverage if you ever need to use it.
To locate a Honolulu car insurance agency in your neighborhood, click the button below the list.
- Pyramid Insurance Center Ltd
420 Waiakamilo Rd – Honolulu, HI 96817 – (808) 527-7667 - Scott Saito – State Farm Insurance Agent
1150 S King St #901d – Honolulu, HI 96814 – (808) 946-8464 - Doug Kam-Young – State Farm Insurance Agent
2841 Kaonawai Pl – Honolulu, HI 96822 – (808) 988-7011