Best car insurance for bad credit
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Best car insurance companies for drivers with bad credit
Currently, only California, Hawaii and Massachusetts ban the use of credit information in setting car insurance rates. Michigan law does restrict how insurers can use credit when setting rates. However, there are broad exceptions to this rule — so many, that Michigan drivers can generally expect their credit histories to play a part in their car insurance premiums.
In all other states, drivers with poor and average credit-based insurance scores typically pay more for auto insurance than those with good or excellent credit. Some auto insurers also choose to weight your credit history as a risk factor more heavily than others, which is why some carriers offer better rates for drivers with poor credit than others.
Statistically speaking, drivers with low credit are more likely to file claims, meaning that they are a greater insurable risk for an insurance company. As a result, many of the best auto insurance companies for bad credit car insurance are the same as those for high-risk drivers. Keep in mind that even if you have bad credit, there may be other factors, such as a good driving history or discount opportunities, that you could use to your advantage to offset the impact of poor credit history.
Based on Bankrate’s research, drivers with bad credit may want to consider getting a quote from Geico, Travelers or Nationwide.

Bankrate Score
Avg. annual premium with bad credit
Full coverage
Avg. annual premium with bad credit
Min. coverage
Geico
Why Geico made our list: Geico was awarded the Best Car Insurance Company for High-Risk Drivers in the 2025 Bankrate Awards. Not only does the company have a reputation for offering policies to high-risk drivers (including those with poor credit histories), but Geico’s full coverage policies for drivers with poor credit histories are 31 percent less than the national average cost for drivers with poor credit. However, gap insurance is not available, and it ranked below average in terms of customer and claims satisfaction in J.D. Power studies.
Bankrate Score | 4.3 |
J.D. Power | 692/1,000 |
AM Best Rating | A++ |
States covered | 50 states and D.C. |

Bankrate Score
Avg. annual premium with bad credit
Full coverage
Avg. annual premium with bad credit
Min. coverage
Travelers
Why Travelers made our list: Travelers car insurance is available in 42 states and Washington, D.C. Travelers policies are notably customizable; the insurer offers gap coverage, new car replacement, accident forgiveness and roadside assistance. It also offers favorable rates to drivers with poor credit — full coverage costs an average of $2,776 per year while minimum coverage is $880. For reference, this is only 4 percent more than the national average cost of full coverage for drivers with good credit and 10 percent more than the average cost of minimum coverage for drivers with good credit. Travelers advertises a broad range of discounts as well, like savings for maintaining a car insurance policy, driving safely and owning a home.
Bankrate Score | 4.1 |
J.D. Power | 684/1,000 |
AM Best Rating | A++ |
States covered | 42 states and D.C. |
Bankrate Score
Avg. annual premium with bad credit
Full coverage
Avg. annual premium with bad credit
Min. coverage
Nationwide
Why Nationwide made our list: Nationwide offers some of the most competitive rates for drivers with poor credit; on average, drivers pay $2,525 per year for full coverage and $980 for minimum coverage. It also offers pay-per-mile and telematics programs, which may appeal to safe drivers with poor credit histories. Similar to Travelers, policies are highly customizable, with options like accident forgiveness, a vanishing deductible and roadside assistance. However, it scored below average for customer satisfaction in multiple regions in the J.D. Power 2024 U.S. Auto Insurance Study.
Bankrate Score | 4 |
J.D. Power | 728/1,000 |
AM Best Rating | A+ |
States covered | 46 states and D.C. |
Cheapest car insurance companies for drivers with bad credit
Depending on the state you live in, most car insurance companies consider your credit history when pricing your policy. However, each company weighs credit a little differently. Experts recommend getting quotes to compare rates, coverage options, discount opportunities and policy features, but if your credit is low, comparing rates from companies in your area may be especially important.
The carriers in the chart below have some of the cheapest average rates for drivers with poor credit, according to data from Quadrant Information Services. However, not all carriers are available in all states.
|
|
|
---|---|---|
Integrity Insurance
|
$1,917
|
$279
|
Union Mutual
|
$1,464
|
$322
|
$1,995
|
$360
|
|
Island
|
$1,735
|
$360
|
Rural Mutual
|
$2,474
|
$399
|
Farm Bureau of Tennessee
|
$1,963
|
$405
|
Grange Insurance Association
|
$3,518
|
$434
|
Nodak
|
$2,747
|
$437
|
American Farmers & Ranchers Mutual
|
$2,889
|
$457
|
Granwest
|
$2,320
|
$459
|
How your credit impacts your car insurance rates
Auto insurance companies generally assess customers' credit-based insurance scores when providing a quote or finalizing a policy. Drivers with lower credit are statistically more likely to file claims, which means they could cost the insurance company more money. To compensate for the added risk, most insurance companies in most states charge higher rates for drivers with lower credit. In general, the higher your credit rating, the lower your insurance premium.
Three states currently ban the use of credit as a rating factor for car insurance: California, Hawaii and Massachusetts. In some other states, such as Colorado, Maryland, Michigan, Oregon, Texas and Utah, state laws place limits on how insurance companies can use credit information for auto insurance, but do not outright prohibit its use. In most cases, these laws protect consumers from being denied coverage or having a policy canceled solely on the basis of their credit history. For example, insurance companies in Colorado can reward drivers with good credit with lower rates, but can’t use a low credit score as the sole factor when underwriting, denying, canceling or failing to renew coverage.
Bankrate’s take: Several states, including Maryland, New Jersey, Oregon and Washington have seen initiatives in recent years to ban the use of credit information in auto insurance underwriting. In 2022, a judge overturned a Washington state rule set to prohibit insurers from using credit to determine car insurance rates. Multiple insurer groups took legal action to stop the rule, arguing that it would disadvantage consumers by reducing competition in the private market. On the national level, legislators in the U.S. House and Senate have been advocating for passage of the Prohibit Auto Insurance Discrimination (PAID) Act since 2020, proposing to end the use of a wide range of rating factors, including credit, in the auto insurance industry. However, no version of the bill has passed committee review as of June 2024.
Below, you can see how average rates vary across credit tiers. These rates reflect national averages, but your own rates may vary based on additional personal rating factors like your location, vehicle type, claims history and, in some states, your age and gender. Keep in mind that the credit tiers used to set car insurance rates vary between insurance companies, so these levels represent a general range across multiple insurers.
Credit level | Avg. annual full coverage premium | Avg. annual min. coverage premium |
---|---|---|
Poor | $4,708 | $1,387 |
Average | $2,934 | $879 |
Good | $2,678 | $799 |
Excellent | $2,286 | $679 |

Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare auto insurance rates
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Auto insurance rates for bad credit by state
The cost of car insurance for bad credit may vary greatly based on where you live. Unless you live in California, Hawaii or Massachusetts, your credit history will likely impact your premium. In some states, drivers with poor credit can pay over twice the amount that drivers with good credit pay for the same coverage.
|
|
|
---|---|---|
Avg. annual full coverage premium with bad credit
$3,835
|
Avg. annual full coverage premium with good credit
$2,079
|
|
Avg. annual full coverage premium with bad credit
$4,139
|
Avg. annual full coverage premium with good credit
$2,402
|
|
Avg. annual full coverage premium with bad credit
$4,928
|
Avg. annual full coverage premium with good credit
$2,739
|
|
Avg. annual full coverage premium with bad credit
$4,809
|
Avg. annual full coverage premium with good credit
$2,489
|
|
Avg. annual full coverage premium with bad credit
$2,935
|
Avg. annual full coverage premium with good credit
$2,935
|
|
Avg. annual full coverage premium with bad credit
$6,255
|
Avg. annual full coverage premium with good credit
$3,212
|
|
Avg. annual full coverage premium with bad credit
$5,125
|
Avg. annual full coverage premium with good credit
$2,668
|
|
Avg. annual full coverage premium with bad credit
$4,977
|
Avg. annual full coverage premium with good credit
$2,896
|
|
Avg. annual full coverage premium with bad credit
$8,335
|
Avg. annual full coverage premium with good credit
$4,210
|
|
Avg. annual full coverage premium with bad credit
$5,659
|
Avg. annual full coverage premium with good credit
$2,976
|
|
Avg. annual full coverage premium with bad credit
$1,705
|
Avg. annual full coverage premium with good credit
$1,705
|
|
Avg. annual full coverage premium with bad credit
$2,193
|
Avg. annual full coverage premium with good credit
$1,473
|
|
Avg. annual full coverage premium with bad credit
$4,208
|
Avg. annual full coverage premium with good credit
$2,442
|
|
Avg. annual full coverage premium with bad credit
$3,446
|
Avg. annual full coverage premium with good credit
$1,751
|
|
Avg. annual full coverage premium with bad credit
$3,790
|
Avg. annual full coverage premium with good credit
$1,878
|
|
Avg. annual full coverage premium with bad credit
$5,445
|
Avg. annual full coverage premium with good credit
$2,560
|
|
Avg. annual full coverage premium with bad credit
$5,952
|
Avg. annual full coverage premium with good credit
$2,855
|
|
Avg. annual full coverage premium with bad credit
$6,956
|
Avg. annual full coverage premium with good credit
$3,998
|
|
Avg. annual full coverage premium with bad credit
$3,506
|
Avg. annual full coverage premium with good credit
$1,651
|
|
Avg. annual full coverage premium with bad credit
$5,363
|
Avg. annual full coverage premium with good credit
$2,832
|
|
Avg. annual full coverage premium with bad credit
$2,067
|
Avg. annual full coverage premium with good credit
$2,066
|
|
Avg. annual full coverage premium with bad credit
$5,873
|
Avg. annual full coverage premium with good credit
$3,161
|
|
Avg. annual full coverage premium with bad credit
$6,083
|
Avg. annual full coverage premium with good credit
$2,581
|
|
Avg. annual full coverage premium with bad credit
$4,820
|
Avg. annual full coverage premium with good credit
$2,350
|
|
Avg. annual full coverage premium with bad credit
$4,901
|
Avg. annual full coverage premium with good credit
$2,607
|
|
Avg. annual full coverage premium with bad credit
$4,667
|
Avg. annual full coverage premium with good credit
$2,422
|
|
Avg. annual full coverage premium with bad credit
$5,214
|
Avg. annual full coverage premium with good credit
$2,402
|
|
Avg. annual full coverage premium with bad credit
$5,635
|
Avg. annual full coverage premium with good credit
$3,660
|
|
Avg. annual full coverage premium with bad credit
$3,984
|
Avg. annual full coverage premium with good credit
$1,843
|
|
Avg. annual full coverage premium with bad credit
$6,340
|
Avg. annual full coverage premium with good credit
$2,938
|
|
Avg. annual full coverage premium with bad credit
$4,208
|
Avg. annual full coverage premium with good credit
$2,195
|
|
Avg. annual full coverage premium with bad credit
$7,696
|
Avg. annual full coverage premium with good credit
$4,093
|
|
Avg. annual full coverage premium with bad credit
$2,754
|
Avg. annual full coverage premium with good credit
$1,957
|
|
Avg. annual full coverage premium with bad credit
$4,135
|
Avg. annual full coverage premium with good credit
$1,810
|
|
Avg. annual full coverage premium with bad credit
$3,183
|
Avg. annual full coverage premium with good credit
$1,782
|
|
Avg. annual full coverage premium with bad credit
$5,016
|
Avg. annual full coverage premium with good credit
$2,749
|
|
Avg. annual full coverage premium with bad credit
$3,897
|
Avg. annual full coverage premium with good credit
$2,096
|
|
Avg. annual full coverage premium with bad credit
$4,800
|
Avg. annual full coverage premium with good credit
$2,436
|
|
Avg. annual full coverage premium with bad credit
$4,510
|
Avg. annual full coverage premium with good credit
$2,539
|
|
Avg. annual full coverage premium with bad credit
$4,033
|
Avg. annual full coverage premium with good credit
$1,970
|
|
Avg. annual full coverage premium with bad credit
$5,695
|
Avg. annual full coverage premium with good credit
$2,306
|
|
Avg. annual full coverage premium with bad credit
$4,440
|
Avg. annual full coverage premium with good credit
$2,090
|
|
Avg. annual full coverage premium with bad credit
$6,135
|
Avg. annual full coverage premium with good credit
$2,573
|
|
Avg. annual full coverage premium with bad credit
$3,912
|
Avg. annual full coverage premium with good credit
$2,128
|
|
Avg. annual full coverage premium with bad credit
$2,768
|
Avg. annual full coverage premium with good credit
$1,506
|
|
Avg. annual full coverage premium with bad credit
$4,352
|
Avg. annual full coverage premium with good credit
$2,161
|
|
Avg. annual full coverage premium with bad credit
$2,747
|
Avg. annual full coverage premium with good credit
$1,858
|
|
Avg. annual full coverage premium with bad credit
$4,794
|
Avg. annual full coverage premium with good credit
$2,224
|
|
Avg. annual full coverage premium with bad credit
$3,509
|
Avg. annual full coverage premium with good credit
$1,950
|
|
Avg. annual full coverage premium with bad credit
$2,883
|
Avg. annual full coverage premium with good credit
$1,759
|
|
Avg. annual full coverage premium with bad credit
$4,361
|
Avg. annual full coverage premium with good credit
$3,016
|
What is no-credit-check auto insurance?
Most auto insurance companies assess credit history as part of their algorithm for determining rates for drivers (in states where it is allowed). However, some companies offer what is called no-credit-check auto insurance. These insurance companies do not use your credit history to generate your auto insurance rate.
When shopping around for a no-credit-check policy, you may want to find a few companies and compare them, as the premiums may be higher than those for standard car insurance policies. The higher cost of these no-check plans is the company’s way of creating a protective buffer around financial risk. Some customers may pay more than they might with a credit check, while others may pay less.
Most no-credit auto insurance companies have a fairly small local service area. Take CURE Insurance, which only offers policies in Michigan, New Jersey and Pennsylvania, or Dillo Insurance, which is limited to Texas. For drivers in most states, the closest thing to a true no-credit-check policy is a usage-based insurer that weighs driving behavior more heavily than traditional rating factors like credit. Root Insurance primarily bases car insurance premiums on how you drive.
How to improve your credit score
One strategy for drivers looking to save with poor credit may be to improve your credit history. If you are trying to improve your credit, these tips may help you bring your score up. Note that it may take time to see improvement after implementing these strategies.
- Make payments on time. Making late payments, or failing to make payments at all, is typically one of the worst things you can do to your credit. Making timely payments may be one of the best ways to increase your score.
- Never make less than the minimum payment. Making less than the minimum payment is typically not as bad as not paying at all, but it will still leave your account delinquent until the full payment is made.
- Use credit and debt wisely. Be careful when you take out loans and credit cards. If the minimum payments will stretch your budget, it might be best to forgo the loan or card entirely.
- Maintain a low credit utilization rate. The more of your total credit that you keep available, the less risky you may be to your lender. Using 30 percent or less of your available credit is considered optimal for growing and maintaining a good credit history.
- Limit hard credit inquiries. Frequent hard credit inquiries can actually lower your credit. Try to limit hard inquiries and always ask a potential lender or creditor if they will be running a “soft” or “hard” check before authorizing them to do so. If you are checking your credit history for your own knowledge, make sure to use a reputable company that only monitors with a soft inquiry.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze March 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Credit-based insurance scores: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.