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Car Insurance Quotes for Bad Credit - Insurify

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Janet Hunt

By: Janet Hunt

Edited by Jackie Cohen

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Having a low credit score can put you in a tough spot financially—lenders rarely consider you for loans, landlords rarely accept your rent applications, and auto insurance companies may consider you high-risk.

Even with poor credit, you still have options for affordable coverage. You will still likely pay more for insurance premiums than drivers with good credit, but Insurify can help you find the cheapest car insurance quotes available by showing all your options.

Quick Facts

  • Drivers with poor credit see higher insurance rates than average.
  • A credit score of 500 or lower is considered bad for insurance purposes.
  • The best way to find cheap car insurance with bad credit is to compare quotes from multiple insurance providers.

Car Insurance Quotes for Drivers with Bad Credit

What is a bad credit score for buying car insurance?

A credit score of 500 or lower is classified as bad credit. Although car insurance costs for drivers with bad credit are usually higher than drivers with good credit, drivers with poor credit scores can save with other discounts, such as a good driver discount or an anti-theft device discount.

Even if you are a good driver, you will pay a higher rate for insurance if you have bad credit. So we’ve done the homework to help you find car insurance quotes that won't break the bank. Here are some companies offering low-cost auto insurance for drivers with bad credit.

Insurance CompanyMonthly Quote with Bad Credit
Metromile$144
Farmers$153
Kemper$193
Travelers$198
Elephant$207
Amigo USA$207
Clearcover$213
Nationwide$244
AssuranceAmerica$255
Mercury$281
National General$295
Liberty Mutual$311
Bristol West$326
The General$417
Dairyland$455
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

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Cheapest States for Car Insurance with Bad Credit

Where you live may factor into how much you pay for car insurance. For example, some locations have higher vandalism, car theft, and accident rates, so drivers who live in these locations pay higher auto insurance rates. Here are the cheapest states, along with the average rates for drivers with bad credit.

StateMonthly Quote with Bad Credit
New Hampshire$153
Hawaii$165
North Carolina$170
Maine$176
North Dakota$179
Vermont$181
Wisconsin$186
Ohio$190
Idaho$190
Indiana$199
South Dakota$201
Iowa$203
Alaska$204
Illinois$206
Minnesota$209
Montana$209
Wyoming$213
Tennessee$223
New Mexico$227
Nebraska$233
Utah$233
Pennsylvania$237
Oregon$237
Kansas$238
Virginia$246
Massachusetts$249
Alabama$254
Oklahoma$263
Mississippi$274
Arizona$278
Arkansas$278
Washinton, D.C.$283
West Virginia$300
New Jersey$305
Washington$308
Connecticut$311
Colorado$317
Maryland$326
Missouri$332
California$334
Delaware$335
Kentucky$335
Texas$342
Florida$348
South Carolina$362
Rhode Island$371
Nevada$400
New York$400
Georgia$442
Louisiana$458
Michigan$532
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

Discounts for Drivers with Bad Credit

Make sure you take advantage of any discounts available to you when you apply for auto insurance to help you find the best rates. For instance, you can qualify for a bundling discount by combining your home and auto insurance coverage. Here are a few other discounts you may want to see if you qualify for:

Good Student Discount: Many insurers give discounts to students with a 3.0 or B grade point average or better. A typical good student discount is around 10 percent.

Good Driver Discount: If you are accident and ticket-free, you could receive anywhere from a 10 to a 30 percent discount on your car insurance.

Military Discount: Many car insurance companies provide full-time, retired, or active duty military members up to a 25 percent discount on their auto insurance.

Low Mileage Discount: If you only drive a few miles to work each day or less than 7,500 miles per year, you could qualify for a low mileage discount.

Anti-Theft Device Discount: If you have an anti-theft device like a security system or VIN etching, you may save up to 15 percent on your auto insurance premium.

You can also save by reviewing your coverage options and choosing a higher deductible for full-coverage car insurance (comprehensive and collision). For example, did you know that raising your car insurance deductible could help lower your car insurance premium by as much as 10 percent?

Check with the insurance company to see if you qualify for any other driver discount. Many top auto insurers like GEICO, Nationwide, and State Farm offer attractive car insurance discounts to help you save money. You can always find the best car insurance rates by using Insurify to compare quotes, no matter your credit score.

See More: Car Insurance Quotes

Tips for Cheaper Car Insurance with Bad Credit

The bottom line is that some insurance companies will factor in your credit score in addition to your driving history when determining the price you pay for auto insurance. However, you shouldn't despair. You can take steps to improve your credit score and qualify for the best car insurance rates.

Some states have banned the use of your credit report for determining auto insurance premiums. These states include California, Hawaii, Massachusetts, Washington, and Michigan. If you’re stuck dealing with the consequences of a poor credit score, here are a few ideas for improving it.

See More: Cheap Car Insurance

Check Your Credit Score

You can use any of the three national credit bureaus, Equifax, Experian, or TransUnion, to check your credit report and FICO score to find out if your credit report contains inaccurate information. Then, contact the credit bureau about having inaccuracies removed to better your score.

Keep Credit Card Balances Low

Don't max out your credit cards, and aim for 30 percent or less credit utilization; additionally, you should strive to pay your credit card balances in full each month. If you can't pay your balances in full each month, at least pay more than the minimum payment due.

Avoid Making Late Payments

Focus on your credit card activity to help improve your credit score and avoid making late payments since payment history is a whopping 35 percent of your credit score. A few simple steps can help you avoid making late payments, including signing up for auto-pay for your bills and setting yourself payment reminders on your phone or calendar.

Consider Debt Consolidation

If you have several high-interest loans, you may want to consider debt consolidation by taking out a loan to pay off your other loans. You will only have one payment to deal with, and you may be able to get the loan at a lower interest rate.

Shop Around for Car Insurance

Don't get discouraged. In time, as you improve your credit score, you will qualify for cheaper car insurance rates. However, if you don't have the best credit score, use Insurify to shop around for auto insurance to make sure you find a company that will offer you comprehensive auto insurance coverage at affordable car insurance rates.

See More: Best and Worst Sites to Compare Car Insurance

Cheap Car Insurance for Bad Credit: It’s Possible

No one wants to pay more for car insurance. Unfortunately, high-risk drivers with tickets on their driving record and low credit scores have higher car insurance rates. So consider cleaning up your driving by taking a safe driver course and taking steps to improve your credit rating. In no time, you will find yourself qualifying for cheaper car insurance rates.

The best way to save is to compare car insurance rates to find the best deal. When you compare multiple insurance providers, you can see the best rates for the coverage options you choose. You want the most comprehensive coverage available for the most affordable rates. Until you improve your credit score and qualify for lower rates, use Insurify to compare quotes.

Frequently Asked Questions

  • Credit scores can range anywhere from 300 to 800 and are divided into tiers: poor, fair, good, very good, and excellent credit. Car insurance companies consider anything above 700 a good credit score, and a credit score of 500 or below is regarded as a bad credit score for car insurance. Therefore, drivers with a credit score of 500 or below will have higher car insurance costs.

  • Auto insurers justify using credit-based scoring with insurance industry research that shows that people with higher credit scores are less likely to file claims and drivers with lower credit scores are a higher risk to insure. However, most states will not allow insurance companies to use a credit score as the sole determining factor for auto insurance rates.

  • No, you cannot avoid telling the insurance company about your credit score. Even if you omit this information when completing your insurance application, the insurance company will likely do a credit check and find out anyway.

  • Insurance providers use your auto insurance score to determine how likely you are to file an insurance claim. The insurer uses your credit score along with methodology involving several other factors (such as payment history, amounts owed, length of credit history, new credit, types of credit) to determine the rate you pay for a car insurance policy.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Janet Hunt
Janet Hunt

Content Writer at Insurify

Janet Hunt received her B.S. in Business Administration with the University of Phoenix. She has worked in the insurance industry for over 20 years. Janet likes to spend her spare time coming up with gourmet recipes and trying them out on her guests. So far, all have survived.

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