Best Car Insurance Company for Bad Credit (Deals & Tips)
The best car insurance companies for bad credit are GEICO and Nationwide. Bad credit auto insurance is about $157 a month. However, your rates will vary. If you qualify for several discounts, you could save over 40% on bad credit car insurance. Shop around and compare the top auto insurance companies for drivers with bad credit to secure the best rates.
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Written by
D. Gilson, PhD
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Reviewed by
Leslie Kasperowicz
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UPDATED: Jan 31, 2022
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- Bad credit correlates to a higher risk of filing claims
- California, Hawaii, and Massachusetts have outlawed credit-based car insurance
- Alert your car insurance company whenever your credit score improves
- Bad credit can increase your car insurance rates by at least 77%
Are you searching for the best auto insurance companies for bad credit? Wondering if you can get car insurance if you have bad credit, or if there is a way to get car insurance with no credit?
Don’t worry – our guide will answer all your frequently asked questions.
Car insurance with bad credit can be expensive, but we’ll show you the best car insurance companies for bad credit, which states are the cheapest, and what discounts can slow down costly car insurance rates.
After you learn about the best car insurance companies for bad credit, enter your ZIP code in the free online quote tool above to compare quotes from multiple insurance companies near you.
Table of Contents
What are the best car insurance companies for bad credit?
It can be challenging to get affordable car insurance for bad credit. Start with this list if you’re looking for the top auto insurance companies for drivers with bad credit:
| Car Insurance Companies | Average Monthly Full Coverage Rates with Bad Credit |
|---|---|
| Allstate | $247 |
| Farmers | $200 |
| GEICO | $157 |
| Liberty Mutual | $284 |
| Nationwide | $167 |
| Progressive | $232 |
| State Farm | $212 |
| USAA | $168 |
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GEICO is one of the cheapest car insurance companies in the United States, followed by Nationwide.
But did you know that some states generate cheaper rates on average? State Farm and Liberty Mutual may have more affordable auto insurance rates for bad credit in other states.
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Which state has the cheapest car insurance for drivers with bad credit?
According to the National Association for Insurance Commissioners (NAIC), full coverage auto insurance is $90 a month on average.
Bad credit car insurance quotes produce expensive rates. But some averages are much cheaper than expected, even for full coverage car insurance.
Let’s compare each state to see how car insurance for bad credit varies:
| States | Average Monthly Full Coverage Rates with Bad Credit (350 - 579) | Average Monthly Full Coverage Rates with Good Credit (740 - 799) |
|---|---|---|
| Alabama | $259 | $135 |
| Alaska | $189 | $130 |
| Arizona | $234 | $129 |
| Arkansas | $288 | $160 |
| California* | $176 | $172 |
| Colorado | $277 | $168 |
| Connecticut | $247 | $154 |
| Delaware | $249 | $148 |
| Florida | $485 | $197 |
| Georgia | $262 | $165 |
| Hawaii* | $101 | $94 |
| Idaho | $146 | $87 |
| Illinois | $219 | $124 |
| Indiana | $218 | $105 |
| Iowa | $197 | $105 |
| Kansas | $264 | $142 |
| Kentucky | $344 | $177 |
| Louisiana | $386 | $227 |
| Maine | $119 | $80 |
| Maryland | $245 | $156 |
| Massachusetts* | $106 | $102 |
| Michigan | $517 | $192 |
| Minnesota | $257 | $137 |
| Mississippi | $224 | $149 |
| Missouri | $236 | $138 |
| Montana | $241 | $145 |
| Nebraska | $239 | $128 |
| Nevada | $273 | $187 |
| New Hampshire | $181 | $106 |
| New Jersey | $276 | $146 |
| New Mexico | $211 | $118 |
| New York | $406 | $193 |
| North Carolina | $147 | $110 |
| North Dakota | $199 | $105 |
| Ohio | $173 | $86 |
| Oklahoma | $252 | $156 |
| Oregon | $191 | $112 |
| Pennsylvania | $213 | $123 |
| Rhode Island | $258 | $168 |
| South Carolina | $231 | $126 |
| South Dakota | $262 | $137 |
| Tennessee | $201 | $112 |
| Texas | $254 | $152 |
| Utah | $197 | $109 |
| Vermont | $156 | $101 |
| Virginia | $192 | $109 |
| Washington | $151 | $98 |
| Washington, D.C. | $256 | $155 |
| West Virginia | $220 | $125 |
| Wisconsin | $453 | $99 |
| Wyoming | $196 | $125 |
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California, Hawaii, and Massachusetts are three states that have outlawed credit-based auto insurance, and unsurprisingly Hawaii, Massachusetts, and Maine have the most affordable auto insurance rates for drivers with bad credit.
Michigan and Washington have also outlawed car insurance based on credit, but their rates are still much higher than average.
Bad credit can drive your rates up by 77%. Sometimes poor credit doubles your auto insurance rates. But there’s a way around high prices.
Which discounts can lower bad credit car insurance quotes?
Discounts can lower your auto insurance rates by hundreds, even if you have bad credit.
Here are a few discounts that can help you save money on bad credit auto insurance.
- Multi-Vehicle Discount – Varies
- Anti-Theft Features Discount – Varies
- Paperless Billing Discount – At least 2%
- Automatic Payments Discount – At least %2
- Multi-Policy Discount – Up to 25%
- Safe Driver Discount – Up to 40%
- Safety Features Discount – Up to 15%
- Pay-In-Full Discount – Up to 5%
The most effective discount you can receive is the safe driver discount. Some companies call it a defensive driver discount.
Now imagine if you stack discounts. The hundreds of dollars you expected to spend will come to a screeching halt.
Are there other ways I can save on bad credit car insurance?
The answer is yes. Before you buy car insurance with bad credit, try developing habits where you drive less. Driving fewer miles during your policy can reduce your auto insurance rates by 10%.
Take it a step further and enroll in a usage-based insurance program. The top auto insurance companies have programs where you can save money based on your driving habits.
Why do car insurance companies care about credit history?
According to the Federal Trade Commission (FTC), auto insurance companies use credit scores, from drivers’ credit reports, to determine risk.
People with poor credit correlate to high chances of filing claims. Therefore, car insurance is more expensive if you have a credit score lower than 580. A credit-based insurance score allows auto insurers to determine what annual rates are appropriate for each individual driver.
Compare the best insurance companies to secure auto insurance quotes that work best for your budget.
How can I improve my credit score?
Your credit score won’t stay low forever if you’re making payments on outstanding debt.
No credit can be even worse for your financial options, but you can establish credit by making payments to small loans and other lines of credit.
Is no-credit-check car insurance more expensive?
The short answer is yes. It’s a useful car insurance option when you can’t find an insurance company that will accept your policy request, but no-credit-check auto insurance is more expensive.
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How to find the Best Car Insurance Companies for Bad Credit
A poor credit score makes it difficult to find affordable auto insurance. But bad credit doesn’t disqualify you from car insurance discounts.
If you can’t find cheap auto insurance with the best companies, try smaller market insurance companies like The General or Esurance.
Now that you know more about the best car insurance companies for bad credit drivers, use our free online quote tool to compare multiple companies in your area.