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6 years experience in personal finance writing
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4+ years experience in insurance and personal finance editing
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Updated
California insurers can’t use credit-based insurance scores to set car insurance rates.[1]
Drivers with bad credit in California pay an average monthly rate of $175 for car insurance.
California drivers can lower their car insurance rates by maintaining a good driving record, bundling policies, and asking about discounts.
No, California doesn’t allow insurance companies to use credit-based insurance scoring to set auto insurance rates. A credit-based insurance score predicts the likelihood that you’ll file a claim based on information from your credit report. But it’s not the same thing as your credit score, even though it uses similar credit information, like your payment history.[2]
California’s restriction on insurance-based credit scores is part of Proposition 103, a consumer protection law that passed in 1988. Under this law, insurers must base auto insurance premiums on a person’s driving record, annual mileage, and years of experience rather than credit history.
These rules are just one part of California’s broader car insurance requirements and regulations.
Liability rates for bad credit start at $80 per month
Even though insurers in California can’t use credit to set auto insurance rates, drivers with bad credit may still end up paying more for car insurance. Other risk factors that affect premiums could be responsible for the higher cost.
For example, a history of coverage lapse, at-fault accidents, traffic violations, or insurance claims can result in higher rates, regardless of your credit history. In comparison, drivers with lower credit scores present a higher insurance risk, while drivers with good credit are less likely to file insurance claims.[3]
Auto insurance companies in California can consider factors like your driving record, vehicle type, annual mileage, and claims history when setting rates. Your location can also affect your car insurance rates.
Drivers in large, densely populated cities like Los Angeles or San Francisco often face higher premiums because urban areas tend to have higher traffic volume.[4] California also faces a significant wildfire risk, with CAL FIRE identifying parts of the state as high or very high fire hazard severity zones.[5]
USAA offers the cheapest average car insurance rates for drivers with poor credit, with an average rate of $80 per month.
Rates can vary depending on your driving profile, so it’s important to shop around and compare insurance quotes. The table below shows the cheapest insurers in California for drivers with bad credit.
Insurance Company  | Average Monthly Quote: Liability Only |
|---|---|
| USAA | $80 |
| Aspire General | $84 |
| Sun Coast | $88 |
| GEICO | $88 |
| Mercury | $89 |
| National General | $90 |
| Dairyland | $100 |
| Root | $107 |
| Direct Auto | $109 |
| Allstate | $112 |
| Farmers | $114 |
| Anchor | $118 |
| Bristol West | $125 |
| Kemper Special | $127 |
| Travelers | $130 |
| Kemper Rsvp | $140 |
| 21st Century | $142 |
| State Farm | $145 |
| Chubb | $287 |
If you’re having trouble finding affordable auto insurance, you can look into California’s Low Cost Automobile (CLCA) program. The CLCA program provides low-cost liability insurance for the vehicle’s primary driver and any eligible secondary drivers.
To qualify, you must meet the following requirements:
Have a valid California driver’s license
Meet the income eligibility guidelines
Own a car that’s valued at $25,000 or less
Be at least 18 years old (or a legally emancipated 16- or 17-year-old)
You’re either a new driver or have a good driving record
Since the CLCA program provides liability-only insurance, you’ll be responsible for covering your own medical bills and property damage. But it’s a good option for drivers who need an affordable way to meet the state’s minimum requirements.
Good credit leads to better rates, but that doesn’t mean you can’t find affordable car insurance in California if you have bad credit:
Compare car insurance quotes. Rates can change frequently, and you may be able to find cheaper car insurance with another company six months from now. Shopping around regularly and comparing quotes from at least three different companies ensures you’re not overpaying for auto insurance.
Enroll in usage-based insurance. UBI and telematics programs can significantly reduce your car insurance premiums by basing your rates on your actual driving habits. For example, you could earn a discount for demonstrating good driving behavior or maintaining low mileage.
Maintain continuous coverage. If you can’t maintain continuous coverage, insurance companies will see you as risky to insure. If you can’t afford full coverage, keep an active liability insurance policy and ensure that there are no coverage gaps.
Bundle your policies. Most insurers offer car insurance discounts for bundling multiple policies, like auto and homeowners or renters insurance.
Ask about discounts. Setting up automatic payments or enrolling in paperless billing are easy changes that can lead to discounts. You can also receive a discount for taking a defensive driving course and keeping a clean driving record.
Insurify partners with top insurers for real quotes
California ranks No. 1 in vehicle thefts by volume in 2025, according to Insurify data. Higher theft rates can lead to more insurance claims, which may in turn lead to higher premiums. Still, you can find affordable coverage if you know where to look.
Here are three of the best insurance companies in California for drivers with bad credit.
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.2 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $73/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $147/mo |
GEICO's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.8 | 2.9 |
Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.
GEICO consistently offers some of the most competitive rates in California, partly due to its wide range of discounts. For example, the company offers a discount to federal civilian employees, and California has more federal civilian employees than any other state.[6]
You can manage your insurance policy and file claims with GEICO’s mobile app. That said, GEICO’s J.D. Power customer satisfaction rating ranks below some competitors.
Low average rates for California drivers
Wide variety of car insurance discounts
Offers a highly rated mobile app
Limited access to local insurance agents
Doesn’t offer gap insurance
Below-average J.D. Power customer satisfaction rating
| User Reviews | 4.0 |
|---|---|
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $71/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $125/mo |
Aspire General's score | Industry average | |
|---|---|---|
| Coverage options | 3.7 | 3.2 |
| Customer service | 3.1 | 3.6 |
| Discounts | 3.7 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
Your driving record is the number one factor affecting your car insurance costs in California. Aspire General is among the best companies for high-risk insurance, offering some of the lowest rates for drivers with a history of speeding tickets, accidents, and driving under the influence (DUI) convictions.
Plus, the company is headquartered in Rancho Cucamonga, CA, and has a large network of insurance agents located throughout the state.
Large network of local agents
Specializes in working with high-risk drivers
Flexible insurance options
Limited digital tools
Fewer discounts than larger insurers
Online insurance quotes aren’t available
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $67/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $149/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.8 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
California has more than 1.8 million veterans, and it houses a large number of military installations. For example, Marine Corps Base Camp Pendleton is located between San Diego and Los Angeles. USAA not only offers military-specific discounts, but low-mileage drivers can save by signing up for the SafePilot Miles program.
Military-specific discounts available
Offers two telematics programs
Above-average J.D. Power score
Only available to military members and their families
Limited number of brick-and-mortar locations
Customer service isn’t available on Sundays
Our editorial team analyzed regional and national auto insurance companies that sell policies in California to assess which offer the best rates, coverage options, customer service, and savings to drivers with a low credit score. We prioritized competitive rates, 24/7 customer service, low-mileage discounts or programs, safe driving discounts, homeownership discounts or bundling options, and specialty or supplemental coverages.
In California, bad credit alone doesn’t classify you as a high-risk driver because insurers can’t factor in credit history when setting rates. Whether insurers consider you high risk depends on your driving record. If you have a history of at-fault accidents, serious traffic violations, or an SR-22 requirement, you’ll likely pay more for coverage.
High-risk drivers in California pay more for coverage, though the exact amount varies depending on the severity of the violation. For example, drivers with a DUI conviction pay an average of $130 per month. Becoming a good driver and avoiding accidents and violations are among the best ways to lower your rates over time.
California’s rules apply equally to drivers with good credit and poor credit because insurers can’t use credit information when setting rates. Here’s additional information on car insurance for drivers with bad credit in California.
No. A credit check alone doesn’t directly affect your car insurance rates in California because the state prohibits insurance companies from using this information to set rates. But it can indirectly influence your premiums. For example, drivers with poor credit may also have a history of coverage lapses, which can lead to higher rates.
Yes, you can get car insurance in California with no credit history. California law prohibits insurers from using your credit information during underwriting. It’s one of five states that restrict the use of credit, along with Hawaii, Maryland, Massachusetts, and Michigan.[7]By contrast, neighboring Nevada allows insurers to use credit-based insurance scores when setting rates.[8]
At an average of $80 per month, USAA has the cheapest average rates for California drivers with poor credit. But the exact rates you receive will vary depending on your ZIP code, deductible, and coverage amounts.
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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6 years experience in personal finance writing
Featured on Credit Karma and Insider
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
