Best Car Insurance Quotes for Bad Credit

Car insurance for drivers with bad credit averages $190 per month in the U.S.

Lindsay VanSomeren
Lindsay VanSomeren
  • 8 years in insurance and personal finance writing

  • Former data scientist for U.S. Geological Survey

Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.

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Katie Powers
Edited byKatie Powers
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Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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Mark Friedlander
Reviewed byMark Friedlander
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Updated March 1, 2024 at 11:00 AM PST

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In most states, your credit history is a factor that insurers take into account when setting your car insurance premium.[1] About 95% of personal insurance companies consider credit-based insurance scores when assessing risk, according to FICO.[2]

Here’s what you need to know to find affordable car insurance despite having bad credit.

Quick Facts
  • States that restrict or ban auto insurers from considering your credit history include California, Hawaii, Massachusetts, and Michigan.

  • Applying for car insurance shouldn’t affect your credit history.

  • In most states, insurers can deny you coverage if you have bad credit, or charge you a much higher rate than a driver with good credit.

Best car insurance for drivers with bad credit

Even if you have bad credit, you have options when it comes to car insurance. Here are some of the best car insurance companies for drivers with lower credit scores.

COUNTRY Financial

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.9
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
868
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+

Mostly selling coverage in the West and Midwest, COUNTRY Financial has a lot to offer — especially if you have a low credit score. In addition to auto insurance, the company sells property, life, business, farm, crop, and pet insurance. COUNTRY Financial sells car insurance to drivers with bad credit, often for less than some other companies.

The company also has a wide range of discounts that you can use to lower your rate even further, including some discounts you won’t see elsewhere. For example, it offers discounts for engaged couples and people who work as EMTs.

Pros
  • Provides access to a broad network of exclusive agents

  • Many unique discount options

Cons
  • Available in only 19 states

  • Online quotes not available

Average monthly rates for drivers with bad credit:

Full coverage: $48

Liability only: $22

Philip is personable and overall makes dealing with insurance and claims easier.

Megan - May 27, 2023
Verified

Average customer service from the agent

Michael - December 27, 2022
Verified

Worked with them for many years; never had issues, and our agent always had our best interests at heart

Shirley - October 2, 2022
Verified
Read our Country Financial review

Mile Auto

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
3.4
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
Not rated
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR

If you drive infrequently, you can consider buying pay-per-mile auto insurance from Mile Auto. The company charges a base rate plus a per-mile rate. Once a month, you’ll have to take a picture of your odometer and send it in to receive your premium bill.

Mile Auto is currently available in only a handful of states. And if you run into problems, you can’t get help from a local agent. Instead, you’ll need to call customer service between 9 a.m. and 6 p.m. in your local time zone. The company doesn’t advertise any discounts or offer any other types of coverage besides car insurance.

Pros
  • No telematics tracking device needed

  • Infrequent drivers can save with pay-per-mile car insurance

Cons
  • Available in only 11 states

  • No additional discounts

Average monthly rates for drivers with bad credit:

Full coverage: $103

Liability only: $57

Nationwide

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815
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.
$84/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.
$187/mo

The 10th-largest auto insurer in the U.S. based on market share, Nationwide offers plenty of insurance products to choose from, numerous auto coverage options, and discounts.[3] In addition to standard auto coverage, Nationwide also offers a mileage-based pricing option similar to Mile Auto.

But Nationwide doesn’t offer policies in Alaska, Hawaii, Louisiana, or Massachusetts. And it received below-average rankings in customer and claims satisfaction from J.D. Power.[4]

Pros
  • Vanishing deductible option

  • Low volume of complaints lodged with the National Association of Insurance Commissioners (NAIC)

Cons
  • Coverage unavailable in four states

  • Poor customer satisfaction ratings from J.D. Power

I am happy with Nationwide.

James - November 5, 2023
Verified

They were there for me when I needed them.

shane - October 30, 2023
Verified

After 50+ years with NW, I don’t feel there is personalized contact.

Paula - October 4, 2023
Verified
Read our Nationwide review

Auto-Owners

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IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
837
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++

Available mostly in the Midwest and Southeast, Auto-Owners is a good option if you prefer working with an agent in person or over the phone. The company maintains a distribution network of about 48,000 local independent agents, and it’ll refer you to the closest one to you for a quote. While most insurers offer online quote, with Auto-Owners you can't get a quote online.

Auto-Owners offers a wide range of insurance types in addition to car insurance, such as homeowners insurance and farm insurance. It also offers many discount options that can help you lower your premium even further.

Pros
  • A++ (Superior) financial strength rating from AM Best

  • Low volume of customer complaints lodged with the NAIC

Cons
  • Available in only 26 states

  • Lower-than-average J.D. Power ratings for overall customer satisfaction[5]

Average monthly rates for drivers with bad credit:

Full coverage: $134

Liability only: $62

I was pleased with the agent and for years the price, but now they have gotten too expensive for a person on a fixed income.

Mary - August 13, 2023
Verified

I was dropped because of two minor at-fault accidents in two plus years.

Zachary - January 8, 2023
Verified

You can work directly with an agent.

Guy - May 17, 2022
Verified
Read our Auto-Owners review

Find Car Insurance with Bad Credit

Liability coverage starts at $22/mo. for drivers with bad credit

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Cheapest car insurance for drivers with bad credit

Finding affordable car insurance when you have bad credit can feel challenging, but shopping around for quotes from multiple insurers can help you find cheap coverage.

Here are the cheapest companies for people with a low credit score.

The below rates are estimated rates current as of: Friday, March 1 at 11:00 AM PST
Data reviewed by Konstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Insurance CompanyFull CoverageLiability Only
COUNTRY Financial4822
Hugo6658
NJM8956
Mile Auto10357
Root11674
USAA12558
Metromile13184
Safeco13170
Auto-Owners13462
GEICO13963
Allstate14967
Progressive16089
Mercury16490
CSAA166103
Erie168103
State Farm18183
National General19181
Nationwide19688
American Family19888
Elephant209118
Travelers21798
The Hartford227146
Direct Auto233113
Shelter238132
State Auto239119
AssuranceAmerica240138
Liberty Mutual248117
Infinity255174
Dairyland275100
Farmers281124
21st Century291130
The General301139
GAINSCO310143
Bristol West316140
Anchor319125
Amica343212
Commonwealth Casualty365139
Chubb528242
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Why does your credit score affect car insurance rates?

Car insurance companies make pricing decisions based on the level of risk you pose, including your likelihood of having an accident and filing a claim. Studies have shown that people with bad credit tend to file claims more frequently than drivers with good credit.

The two are correlated, although having bad credit doesn’t directly cause people to file more claims.[6] Insurers may use credit history to generate a credit-based insurance score, which they then consider when deciding whether to approve or deny you for a policy. And if you’re approved, companies may also consider your credit score when setting your rates.

Due to concerns over the accuracy and fairness of the practice, four states ban or limit auto insurers from considering your credit score when you apply for car insurance:[1]

  • California

  • Hawaii

  • Massachusetts

  • Michigan

What factors do insurers consider when determining rates for drivers with bad credit?

Your credit history isn’t the only thing car insurance companies look at when you submit an application. Insurers typically also consider the following:

  • illustration card https://a.storyblok.com/f/162273/100x100/4da605a1ec/teen-driver.svg

    Age

    Middle-aged drivers tend to pay less than teenage and senior drivers. Teenage drivers typically pay the most for coverage due to their lack of driving experience.

  • illustration card https://a.storyblok.com/f/162273/100x100/c922a01b77/house.svg

    Location

    Insurers use statistical models that show your risk of filing a claim based on the state, city, and ZIP code you live in. Keep in mind, though, that some states prohibit the use of location as a rating factor.

  • illustration card https://a.storyblok.com/f/162273/x/38dc81ba93/drive-1.svg

    Car type

    Car insurance companies generally charge lower rates for drivers with safe cars or vehicles with anti-theft features.

  • illustration card https://a.storyblok.com/f/162273/x/c939068e05/miles.svg

    Mileage

    The more you use your car, the more likely you are to get in an accident — which is why high-mileage drivers typically pay more.[7]

Car insurance rates for bad credit by state

Here’s a look at how much you might pay on average each month for car insurance by state if you have bad credit, according to Insurify data.

The below rates are estimated rates current as of: Friday, March 1 at 11:00 AM PST
Data reviewed by Konstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

State NameFull CoverageLiability Only
North Carolina12162
Hawaii14080
Wisconsin15672
North Dakota16798
Indiana17386
New Hampshire17376
Vermont17974
Idaho17988
Virginia188106
Ohio18886
Alabama18970
Oregon190109
Iowa19070
Wyoming19777
Maine19999
South Dakota20275
Rhode Island207157
Kansas21196
Tennessee21398
Pennsylvania217103
Utah218121
Washington21998
Illinois22198
Montana225106
New York231189
West Virginia23193
Nebraska23598
Mississippi23592
Arizona241116
Minnesota241119
New Mexico24388
Massachusetts248121
Delaware248151
United States256125
Arkansas256111
Colorado260104
Oklahoma261111
California270144
New Jersey273143
Washington D.C.283148
Missouri291116
Georgia296178
Kentucky299219
South Carolina307188
Texas309149
Maryland325191
Louisiana353173
Nevada359215
Florida374265
Connecticut392220
Michigan401207
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Alternative options for drivers with bad credit

If you’re having a hard time finding standard coverage at a price you can afford because of your credit score, you can look into a few alternatives. Drivers with bad credit scores may benefit from insurers that don’t require credit checks, telematics driving programs, or non-standard car insurance coverage.

No-credit-check auto insurance

Insurers that don’t look at your credit are relatively rare. An estimated 95% of all car insurance companies use your credit information in states where it’s legal. Depending on where you live, you may not find insurers that don’t check your credit.

If you can find a no-credit-check insurance company, you should earn rates more in line with people who have better credit scores. Make sure to research the company to decide whether it’s good to work with.

Telematics

If you enroll in a telematics program, your insurer will receive information about your driving habits, including how often you drive, whether you safely accelerate and decelerate, and what time of day you typically drive. You usually need to plug a telematics device into your car or download your insurer’s mobile app to your phone and allow it to record your driving habits.[8]

If you’re a good driver, you can earn significant savings on your car insurance costs. Some companies offer discounts of 30% off or more. On the flip side, you may end up paying more if you don’t practice safe driving habits.

Non-standard car insurance

Some companies specialize in working with high-risk drivers, including people with bad credit or poor driving records. You can look to these insurers if one or more traditional insurance companies have denied issuing you a policy. Coverage from non-standard insurers that provide coverage to high-risk drivers typically costs more.

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How to save on car insurance

You may pay more for coverage if you have bad credit, but you can still find ways to lower the cost of car insurance. Consider the following tips to earn cheaper coverage:

  • illustration card https://a.storyblok.com/f/162273/x/f9e1d7766e/saving-bundle.svg

    Utilize discounts

    Most insurance companies offer several discount options to benefit from. For example, you may save for using a telematics device, being a good driver, or completing a defensive driving course.

  • illustration card https://a.storyblok.com/f/162273/x/c822f20cb3/billing-related.svg

    Drop unnecessary coverage

    You need to meet the minimum level of coverage in accordance with your state law and lender or leasing company requirements (if you finance or lease your vehicle). Beyond that, it’s your choice to carry other coverage options. If you have an inexpensive or very old car, you may not need collision or comprehensive coverage.[9]

  • illustration card https://a.storyblok.com/f/162273/100x100/0f53b7e117/credit-card-2-1.svg

    Build good credit

    If you have bad credit, you can work on building your credit by making on-time credit card payments, reviewing your credit report for any inaccuracies, and not applying for any new credit cards for a period of time.[10]

  • illustration card https://a.storyblok.com/f/162273/x/fa11c1fe75/comparison-website.svg

    Compare multiple quotes

    Each company sets prices differently, so you should get quotes from several insurers to find the best option for you.

Drivers with bad credit FAQs

Though drivers with bad credit typically pay higher rates than people with good credit, you can still find affordable coverage. The following information should help you understand how your credit history can affect your car insurance rates.

  • Does applying for car insurance hurt your credit score?

    No, not usually. Most insurers rely on a soft credit pull when you check your rate and apply for car insurance. Soft credit pulls show up on your credit report but won’t affect your credit score.

  • Can you be denied car insurance due to credit history?

    Yes. Car insurance companies can deny issuing you a policy based on a poor credit profile. If that happens, the Fair Credit Reporting Act requires the insurer to send you a letter telling you why you were denied, where it got your credit report, and how to get a free copy of your own so you can double-check it for accuracy.

  • Can you get car insurance with bad credit?

    Yes. You can get car insurance if you have bad credit. However, you may face higher premiums than someone with good credit. Insurers may also deny you coverage. Some insurers don’t require credit checks during the application process.

  • Do insurance companies check your credit score?

    Most car insurance companies will check your credit history when you apply for coverage, but they don't look at your credit score. Instead, they use the information in your credit history to generate a credit-based insurance score. Insurers can use this information to approve or deny your application and decide what price to charge you.

  • Can you build a credit score with car insurance?

    No. Your car insurance payments won’t help you improve your credit, unfortunately. However, not paying for your coverage can have a negative effect on your credit history. If your insurer notifies a collection agency of an unpaid bill, the agency may report that overdue payment to the credit bureaus as a debt that you owe. That can seriously affect your credit score.

  • Do any car insurance companies specialize in providing coverage for drivers with bad credit?

    Yes. Some high-risk insurers specialize in providing insurance for people who have trouble finding coverage through traditional insurance companies. However, these companies typically charge much higher rates.

Sources

  1. National Association of Insurance Commissioners. "Credit-Based Insurance Scores." Accessed July 17, 2023
  2. FICO. "Do Insurance Companies Use Credit Data?." Accessed July 17, 2023
  3. National Association of Insurance Commissioners. "Property and Casualty Insurance Industry 2022 Top 25 Groups and Companies by Countrywide Premium." Accessed July 18, 2023
  4. J.D. Power. "Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Finds." Accessed July 18, 2023
  5. J.D. Power. "Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds." Accessed July 18, 2023
  6. Rocky Mountain Insurance Information Association. "Credit/Insurance Scoring." Accessed July 18, 2023
  7. Insurance Information Institute. "What determines the price of an auto insurance policy?." Accessed July 18, 2023
  8. Insurance Information Institute. "Background on: Pay-as-you drive auto insurance (telematics)." Accessed July 18, 2023
  9. Insurance Information Institute. "Nine ways to lower your auto insurance costs." Accessed July 18, 2023
  10. Consumer Financial Protection Bureau. "How do I get and keep a good credit score?." Accessed July 18, 2023
Lindsay VanSomeren
Lindsay VanSomeren

Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Konstantin Halachev
Data reviewed byKonstantin HalachevVice President of Engineering
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVice President of Engineering
  • 7+ years experience in data analysis

  • Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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