Best auto insurance in Ohio with bad credit

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When looking for the best car insurance for bad credit in Ohio, it helps to understand the role of credit scores in insurance. Auto insurance companies often use credit scores to calculate insurance rates for customers. Credit scores help determine the financial risks associated with insuring a given driver. In the United States, all states except for California, Hawaii, Massachusetts and Michigan allow the use of credit scores in this way. As a result, credit scores may directly impact auto insurance premiums for most drivers in the United States.

Average cost of full coverage car insurance in Ohio by credit

Provider Poor credit Average credit Good credit Excellent credit
Ohio average $2,075 $1,231 $1,034 $960
National average $3,873 $1,865 $1,674 $1,487

Best car insurance in Ohio with bad credit

On average, Ohio drivers with poor credit pay $401 more than the national average for drivers with good credit. The overall national average for car insurance is $1,674 per year for a full coverage policy. This helps to highlight why finding cheap car insurance for poor credit in Ohio may be especially important for some drivers. Knowing the way that insurance providers classify which credit tier you fall under may be tricky. Each insurance company uses its own tiering system.

The three big credit bureaus are Equifax, Experian and TransUnion. While all three determine credit scores from similar data and use similar systems, they generally compile different scores and use slightly different metrics. Auto insurance companies use one or more of these credit scores to factor into their insurance scores.

Annual car insurance premiums by company for bad credit

Comparing the top auto insurance providers in Ohio by market share, the following providers had the cheapest national average rates on full coverage policies for drivers with bad credit.

Company Good credit Poor credit % Difference
Nationwide $1,485 $1,924 +30%
Geico $1,405 $1,978 +41%
Grange $1,504 $2,054 +37%
USAA $1,225 $2,270 +85%

Why does my credit affect my car insurance rates in Ohio?

Credit scores are typically used with other variables to determine financial risk levels. These systems can determine how likely a customer is to file a claim or to miss policy payments. Auto insurers may use credit scores to calculate insurance scores, which represent the estimated financial risk of customers. According to the Insurance Information Institute (III), people with lower insurance scores are more likely to file a claim.

It is often the case that improving your credit score can ultimately contribute to lower insurance rates. However, this is not an immediate process. Some companies may not compute a new insurance score or rate until it is time for your policy to renew. Other companies may make more frequent adjustments to your insurance score. Consider asking your agent about your insurer’s process so you can understand when you might expect rates reflective of your improved credit.

In certain situations, switching auto insurance providers may save you money on premiums or give you a policy more suited to your needs and budget. This approach may be helpful at times, such as during big life changes or events, significant changes in your finances, moving and changing vehicles may all be reasonable times to consider new providers.

What other factors impact auto insurance rates in Ohio?

While credit scores do play a partial role in calculating car insurance premiums, it is far from being the only factor involved. The Bankrate True Cost report breaks down some of the significant variables involved in determining auto insurance rates. Chief among these are insurance scores, vehicle type and driving history. But while these three are important, many factors come into play.

  • State or metro – Where you live in your state or city could have a noticeable impact on your rates, as the risk of accidents and the average cost of vehicles usually varies between different ZIP codes. It may be possible to move to a nearby city with lower rates for an even more significant difference, though moving entire states to save on car insurance is rarely practical.
  • Cost of your vehicle – The cost of your vehicle plays a significant role in the premiums. The financial value of cars is a substantial part of what auto insurance covers. The more expensive the car, the more expensive it could be to repair or replace. Because of this, insurance companies will usually charge more for coverage. Choosing a less expensive vehicle over a luxury car generally saves you money on insurance rates.
  • Driving record – How long you go without receiving tickets or citations for traffic violations often contributes to your insurance costs. A cleaner record with few to no offenses on it will generally see a lower insurance rate. For instance, in Ohio, drivers who have an at-fault auto accident see an average increase of $432 on their annual car insurance costs.

How to get cheap car insurance in Ohio with poor credit

When it comes to finding cheap car insurance for bad credit in Ohio, every little bit of savings may help. With that in mind, we compiled a list of tips to consider in finding bad credit car insurance in Ohio.

  1. Research the discounts that your provider offers and see which ones you may be able to qualify for.
  2. Consider other providers and gather quotes to see if another insurer might offer you better rates with your credit score.
  3. You can often save on rates by increasing your deductible, but consider the impact it will have on your out-of-pocket costs in a claim.
  4. If you are insuring an old vehicle, it may be worth considering lower coverage amounts to account for the car’s value.

Frequently asked questions

Will I get a credit check when I obtain an insurance quote?

Even the best auto insurance companies may use your credit score to inform their insurance score system. Thankfully, insurance companies typically perform what is called a soft credit check. Unlike a hard credit check, these soft checks do not have an impact on your credit score.

What is the best way to improve my credit?

Credit scores can be complicated because of numerous variables contributing to them. To improve your score, consider paying down debt and reducing your credit utilization. Following an in-depth guide to building your credit may help you to develop more strategies for improving your score.

How much car insurance in Ohio do I need?

Each state differs in how much car insurance you need. For Ohio, drivers are required to carry $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident and $25,000 in property damage liability.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, varied credit tiers and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA

Written by
Joshua Cox-Steib
Joshua Cox-Steib has two years of experience in writing for insurance domains such as Bankrate.com, Coverage.com, Thesimpledollar.com, Reviews.com, and more. His work has also been featured on such sites as Msn.com and BBB.org. His insurance writing career has spanned across multiple product lines, with a primary focus on auto insurance, life insurance, and home insurance.
Edited by
Insurance Editor