See car insurance quotes from our partners

Your information is kept secure.

Cheapest car insurance for drivers with bad credit

If you have bad or poor credit, GEICO may have the cheapest car insurance rates for you.

Headshot of Rachael Brennan
Headshot of Andrew Hurst

By

Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.&Andrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Edited by

Anna SwartzAnna SwartzSenior Managing EditorAnna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.
|

Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

Updated|3 min read

Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

In most states, having a poor credit score means higher car insurance rates. That’s because insurance companies are more likely to consider you a high-risk driver if you have bad credit — they actually look at something called an insurance score, but your credit score is a big part of that.

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

It’s still possible to find cheap car insurance rates even with a poor credit score. Our independent agents can help you shop for car insurance and find your best rates.

Does credit score affect car insurance?

Yes, your credit score can affect what you pay for car insurance. Insurance companies check your credit or credit-based insurance score when you apply for coverage. 

Companies match your profile to their existing data to try and calculate how likely you'll be to file a claim, and having a low credit can put you in a higher-risk category.

States that don’t use credit score for car insurance

There are some states where your credit score doesn’t affect what you pay for car insurance thanks to laws forbidding companies from checking your credit:

  • California

  • Hawaii

  • Maryland

  • Massachusetts

  • Michigan

  • Oregon

  • Utah

Who has cheap car insurance for bad credit?

We found that GEICO has the cheapest car insurance for drivers with bad credit. On average, car insurance from GEICO costs you $157 a month or $1,885 a year if you have bad credit — 40% cheaper than the national average of $3,117 a year.

USAA, Nationwide, COUNTRY Financial, and others also have cheap car insurance for drivers with bad credit. You should always compare car insurance quotes before you buy so you can be sure you’re finding your cheapest options.

Average monthly rate

Average yearly rate

GEICO

$157

$1,885

USAA

$170

$2,042

Nationwide

$181

$2,166

COUNTRY Financial

$188

$2,251

Travelers

$210

$2,523

Kemper

$224

$2,686

Erie

$241

$2,887

Farm Bureau

$250

$3,000

American Family

$254

$3,049

Auto-Owners Insurance

$254

$3,051

Collapse table

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

Why you can trust our picks for the cheapest car insurance with bad credit

We found the cheapest companies for drivers with bad credit by analyzing rates from Quadrant Information Services. These rates were for every ZIP code in the country and were for the following amounts of insurance:

  • Bodily injury liability: $50,000 per person, $100,000 per accident

  • Property damage liability: $50,000 per accident

  • Uninsured/underinsured motorist: $50,000 per person, $100,000 per accident

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

Our sample driver was a single 30-year-old driver who drove a 2017 Toyota Camry and had a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Best car insurance companies for drivers with bad credit

The best car insurance companies for drivers with bad credit are USAA (which is only available for drivers affiliated with the military) Erie, and GEICO. These companies have the highest Policygenius scores and the cheapest rates.

Rates with poor credit

Policygenius score

USAA

$170

5.0 out of 5

Erie

$241

4.9 out of 5

GEICO

$157

4.8 out of 5

COUNTRY Financial

$188

4.7 out of 5

Travelers

$210

4.7 out of 5

Auto-Owners Insurance

$254

4.7 out of 5

Nationwide

$181

4.3 out of 5

American Family

$254

4.3 out of 5

Kemper

$224

Not rated

Farm Bureau

$250

Not rated

Collapse table
Methodology: Why you can trust our picks for the best car insurance with bad credit

Our Policygenius score considers cost, availability, customer experience and satisfaction, coverage options and feedback from our own Policygenius agents — who have years of experience working with real car insurance shoppers.

We assigned weights to each category based on its relative importance, then found the weighted average of these values for each company. The raw scores we assigned to each company were converted into a “z-score” and then a “t-score,” which were then standardized on a 5-point scale. Here’s how our ratings categories break down:

  • Price (35%): We gave each company a score based on its average rate and available discounts.

  • Financial strength (25%): We gave point values based on each company’s A.M. Best Financial Strength Rating, S&P credit rating, and Moody’s credit rating.

  • Customer experience (20%): We scored companies based on how they performed on the most recent J.D. Power Auto Claims Satisfaction and Digital Experience surveys. This category also considers a company's complaint index, which is provided by the National Association of Insurance Commissioners.

  • Coverage options (20%): We scored companies for the number of coverage types offered and the quality of these options. Less common endorsements earned higher scores compared to add-ons that most companies offer.

Cheapest car insurance for bad credit in every state

We found that GEICO has the cheapest car insurance for drivers with bad credit in 22 states, more than any other company. Remember, not every state allows insurance companies to use credit scores to set rates.

State

Cheapest company

Monthly cost

Alabama

Safeway

$136

Alaska

USAA

$142

Arizona

GEICO

$130

Arkansas

USAA

$150

Colorado

GEICO

$136

Connecticut

GEICO

$105

Delaware

GEICO

$182

District of Columbia

GEICO

$191

Florida

GEICO

$267

Georgia

GEICO

$159

Idaho

GEICO

$82

Illinois

Pekin

$109

Indiana

GEICO

$106

Iowa

West Bend Mutual

$128

Kansas

GEICO

$123

Kentucky

GEICO

$173

Louisiana

USAA

$207

Maine

USAA

$87

Maryland

GEICO

$105

Michigan

GEICO

$146

Minnesota

West Bend Mutual

$137

Mississippi

National General

$146

Missouri

USAA

$115

Montana

GEICO

$146

Nebraska

Nationwide

$131

Nevada

GEICO

$129

New Hampshire

USAA

$105

New Jersey

Selective

$169

New Mexico

GEICO

$123

New York

GEICO

$136

North Carolina

National General

$83

North Dakota

USAA

$118

Ohio

GEICO

$96

Oklahoma

USAA

$146

Oregon

GEICO

$137

Pennsylvania

Nationwide

$124

Rhode Island

GEICO

$175

South Carolina

USAA

$139

South Dakota

Kemper

$114

Tennessee

USAA

$129

Texas

Redpoint

$113

Utah

Nationwide

$143

Vermont

GEICO

$91

Virginia

Nationwide

$126

West Virginia

USAA

$136

Wisconsin

GEICO

$97

Wyoming

American National

$94

Collapse table

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

Cost of car insurance by credit score

Your car insurance rates depend in part on your credit score. We found that the average cost of car insurance with a poor credit score is $260 a month or $3,117 a year. 

The better your credit score, the lower your car insurance rates — drivers with a “fair” score paid an average of $173 a month and drivers with “good” credit paid an average of $142 a month.

Credit tier

Average monthly car insurance rate

Average annual car insurance rate

Excellent (800-850)

$117

$1,400

Very good (740-799)

$129

$1,550

Good (670-739)

$142

$1,703

Fair (580-669)

$173

$2,073

Poor (300-579)

$260

$3,117

Credit ranges based on Experian, scoring ranges can vary by carrier

What is no-credit check car insurance?

No-credit check car insurance doesn’t really exist. As long as you live in a state that permits it, almost every car insurance company will use your credit score to set your rates.

Are there car insurance companies that don’t check your credit?

While nearly every car insurance company considers your credit, some don’t put as much importance on credit scores as others. Companies that set your rates based on how well or how much you drive, don’t tend to care as much about your credit score.

One car insurance company where your credit isn’t as important to your rates is Root, a usage-based company that sets rates based mostly on your driving habits and not other factors, pledged to phase out the use of credit scores by 2025.

Does shopping for car insurance hurt your credit?

No, it doesn’t hurt your credit score to shop for car insurance, even if you get quotes from lots of different insurance companies.

When you get car insurance, insurance companies do what’s called a “soft pull” or “soft credit inquiry.” A soft pull is different from a hard pull, which is what credit card companies do when you apply for a card, for example.

A soft inquiry shows up on your credit record but doesn’t affect your score at all.

How to get cheaper insurance if you have bad credit

There are a few ways to get car cheap car insurance (even with bad credit):

  • Avoid accidents and claims: Car insurance will be even more expensive if you get into an accident and have to make a claim, so drive safely and obey traffic laws. 

  • Compare quotes: Comparing quotes from multiple car insurance companies is the best way to avoid overpaying for coverage and to find companies that have lower rates for drivers with bad credit.

  • Complete a driving class: Most insurance companies offer insurance discounts if you complete an accredited defensive driving class. 

  • Get the right amount of coverage: Consider lowering your coverage if you drive an old car that doesn’t need full coverage.

  • Raise your deductible: A higher deductible means lower rates, but it also means you pay more out of pocket in the event of a claim.

  • Re-shop your policy: As your credit improves and you qualify for cheaper rates, re-shop your car insurance to see if you can get a better rate with another insurance company.

How to improve your credit score

One other way to get cheaper car insurance is by improving your credit score over time. It takes a while for your credit to get better, but even small gains can pay off big. 

Think of it like this: the average car insurance premium for a fair credit score is $2,073 a year, more than $1,000 cheaper per year than for poor credit.

You can improve your credit score by:

  • Making regular on-time payments to your outstanding credit card debt

  • Paying down other debt and loan balances you have

  • Avoiding hard credit inquiries, like for new credit cards

  • Using only a small percentage of your available credit balance

  • Keeping credit cards open instead of canceling them

Compare rates and shop affordable car insurance today

We don't sell your information to third parties.

Frequently asked questions

Do you need credit to get car insurance?

You don’t need to have credit to get car insurance, but your rates will be more expensive if you don’t have any credit history. Your rates may even be just as expensive as someone with bad or poor credit.

What is a good credit score for insurance?

There’s not one good credit score for insurance, but you’re more likely to have cheaper rates if you have good credit than bad credit. The better your credit score, the more affordable your rates.

Can you be refused or denied insurance because of your credit score?

It’s possible. Insurance companies don’t have to cover you, and if your credit score is too low, you may have a hard time finding coverage.

Authors

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Editor

Anna Swartz is a senior managing editor who specializes in home, auto, renters, and disability insurance at Policygenius. Previously, she was a senior staff writer at Mic and a writer at The Dodo. Her work has also appeared in Salon, HuffPost, MSN, AOL, and Heeb.

Expert reviewer

Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

Questions about this page? Email us at .