Getting car insurance for those with bad credit involves doing a little more research to find a company that can meet your needs and stay within your budget. It is no secret that car insurance rates get affected by your credit score, but you might be surprised to find out that insurance, even with bad credit, is more affordable than you thought it would be.

Bad Credit and Car Insurance
Your credit score is one of the factors insurance companies use to determine what your individual rates will be. Most insurance companies consider the dividing line between a good and bad credit score to be between 600 and 650, and preferential rates are given to applicants with progressively higher credit scores. This adjustment based on your credit is common in financial transactions, including insurance, loan applications and mortgage loans. The best solution, financially, is to bring up your credit score, but you can lower your car insurance by rethinking your policy.

The obvious solution is to improve your credit score by paying down your debts and to work on a way to manage your finances better.  While this solution is the best fix, there are still other ways you can ensure you’re getting the lowest possible car insurance rates.

Special Discounts Save Money
One way to get cheaper car insurance for people with bad credit is to have multiple lines of insurance with the same company. For example, car insurance and renter’s insurance policies, when both are purchased through the same company, will earn you savings on your premiums. Similarly, keeping the same policy through multiple renewals will earn you a customer loyalty discount.

Using Deductibles to Manage Premiums
You can also lower your premiums by setting a higher deductible. By electing to pay more of the cost of a claim out of pocket, you become less of an insurance risk, and the savings get passed back to you. Be careful not to set your deductibles higher than you are prepared to pay at a moment’s notice, or you could find that the claim cannot be settled until you come up with the money for the deductible.

Drop Unnecessary Coverage
If your policy includes types of coverage that you no longer need, you can lower the cost of coverage by dropping the excess coverage. Collision insurance may not be necessary if you are driving an older car, for example. As another example, older cars may not need the same level of coverage, and optional plans such as comprehensive coverage could be dropped to bring the cost of car insurance back in line with what you would like to pay.

About the Author: is a writer for US Insurance Agents. She works hard to help provide a fresh perpsective to insurance, personal finance and related topics. Google+