Auto Insurance

Auto Insurance for Drivers with Bad Credit

In most states, credit history affects insurance rates. Learn how drivers with poor credit can find affordable coverage and work toward better rates.

Average Rates
70% higher than average

Challenges Drivers with Bad Credit Face

Credit-based insurance scores affect rates in 47 states
Poor credit can increase rates by 50-100%
Limited options for credit-blind insurance
Building credit takes time

How to Save on Bad Credit Auto Insurance

1
Shop insurers in California, Hawaii, or Massachusetts (credit not used)
2
Work on improving your credit score
3
Ask about credit re-scoring after improvements
4
Compare quotes frequently - rates vary significantly
5
Bundle policies to offset higher rates
6
Consider telematics to prove safe driving

Best Companies for Drivers with Bad Credit

GEICO

A++ Rated

GEICO is known for competitive rates and a streamlined digital experience, making it easy to get quotes and manage policies online.

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Progressive

A+ Rated

Progressive is known for innovative tools like Snapshot and Name Your Price, helping drivers find affordable coverage tailored to their needs.

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State Farm

A++ Rated

State Farm is the largest auto insurer in the United States, offering comprehensive coverage through a network of local agents.

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Farmers

A Rated

Farmers Insurance combines a strong local agent network with customizable coverage options and unique programs like their New Car Pledge.

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Coverage Recommendations

  • Get required state minimum coverage at minimum
  • Consider higher deductibles to lower premiums
  • Don't let coverage lapse - it worsens credit impact
  • Review coverage options annually

Drivers with Bad Credit Auto Insurance FAQ

How much does bad credit increase car insurance?

Poor credit can increase rates by 50-100% compared to drivers with excellent credit. In some states, the impact is even larger. The effect varies significantly by insurer.

Which states don't use credit for car insurance?

California, Hawaii, and Massachusetts prohibit using credit scores in auto insurance pricing. Some other states limit how credit can be used.

Can I improve my insurance rate by improving credit?

Yes, improving your credit can lower your insurance rates. Ask your insurer about re-running your credit-based insurance score after you've made improvements.

Is credit score the same as insurance score?

No, credit-based insurance scores are calculated differently than regular credit scores. They focus on factors that predict insurance risk, though the exact formula varies by insurer.

Drivers with Bad Credit Insurance by State

Insurance rates and requirements vary by state. Find information specific to your location.

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