You can get car insurance after bankruptcy in every state, but in most states the credit damage will raise your rates immediately — sometimes by more than double. Whether your state allows credit-based pricing is the single most important variable: California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit scores as a rating factor, meaning bankruptcy has no effect on your premium there. In all other states, high-risk car insurance pricing applies immediately after bankruptcy, with full coverage rates starting at $212 per month at GEICO for poor-credit drivers.
How to Get Car Insurance After Bankruptcy
Updated: March 6, 2026
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Key Takeaways
Car insurance after bankruptcy is available from all major insurers — the impact on your rates depends almost entirely on your state, since California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit as a rating factor.
In states that allow credit-based pricing, poor credit pushes full coverage rates to $212 to $311 per month at major insurers — compared to $98 to $125 per month for a driver with good credit and the same profile, based on MoneyGeek's data.
Bankruptcy stays on your credit report for seven to 10 years, but most insurers re-evaluate your rate at every renewal — rebuilding credit even partially can produce measurable rate reductions within two to three years.
Can You Get Car Insurance After Bankruptcy?
How to Get Car Insurance After Bankruptcy
Getting insured after bankruptcy is a market-matching and credit-timing problem — here's how to work through it in the right order.
- 1Check Your State's Credit Rules Before Shopping
Check whether your state allows credit-based insurance pricing before shopping — if you're in California, Hawaii, Massachusetts or Michigan, bankruptcy has zero effect on your rate and you can shop the standard market normally. In all other states, expect your rates to reflect poor-credit pricing until your score recovers.
- 2Pull Your Credit Reports From All Three Bureaus
Pull your credit report from all three bureaus before requesting quotes — errors on post-bankruptcy reports are common, and disputing them before underwriting can improve your rate faster than any other single action. Visit AnnualCreditReport.com for free reports.
- 3Get Quotes From at Least Three Insurers
Get quotes from at least three insurers, including at least one that explicitly advertises acceptance of drivers with poor credit or recent financial hardship. Progressive and State Farm both write policies for post-bankruptcy drivers in most states and are among the lowest-cost options at poor-credit rates. If standard insurers aren't competitive, explore non-standard auto insurance options that focus on credit-challenged drivers.
- 4Ask Each Insurer How They Re-Rate Credit
Ask each insurer how often it re-rates based on credit and whether it uses a soft or hard credit pull for renewals. Some insurers re-check credit at every 6-month renewal; others lock your rate tier for a full policy year. Knowing this tells you how quickly improved credit will translate to lower rates.
- 5Requote at Every Renewal for the First Three Years
Set a calendar reminder to requote at every renewal for the first three years. Rate reductions as credit recovers are not automatic — you have to shop to capture them. Comparing cheapest car insurance options at each renewal is the most reliable way to ensure you're not overpaying as your credit score climbs.
What You'll Need to Apply
To get a quote after bankruptcy, you'll need your bankruptcy discharge or case number, driving record, vehicle information, prior policy details and credit report.
Bankruptcy Discharge or Case Number
Insurers don't typically ask for this directly, but having it confirms your discharge date. In credit-based states, the date your credit score starts recovering matters for rate timing.
Motor Vehicle Report
Insurers pull this themselves, but knowing your driving record before shopping lets you target the right market. A clean record combined with poor credit is a better risk profile than a DUI with poor credit — make sure you're being quoted correctly.
Vehicle Information
Year, make, model and VIN for each vehicle. Full coverage requires the VIN to run a market value estimate.
Prior Policy Information
Your most recent insurer's name and coverage limits. A lapse in coverage during or after the bankruptcy process compounds the rate impact — document the timeline accurately. Drivers who've had gaps should also review MoneyGeek's guide to car insurance with no credit history for context on how insurers treat thin or disrupted coverage histories.
Credit Report
Pull all three bureau reports before shopping. Post-bankruptcy errors are common and disputable. A corrected report can move your insurance credit tier and lower your rate before your policy even starts.
What to Expect After Bankruptcy
Bankruptcy drops credit scores by 130 to 240 points, which moves most drivers into the poor-credit pricing tier the moment the filing appears on their report. Chapter 7 bankruptcy is discharged in four to six months but stays on your credit report for 10 years. Chapter 13 involves a three to five year repayment plan and stays on your report for seven years. The type you filed determines how long the rate impact persists — and how soon you can realistically expect to recover to standard pricing. For more on navigating this pricing tier, MoneyGeek's guide to car insurance for bad credit drivers covers the lowest-rate options by state.
Most credit-based insurers re-rate at each renewal, so recovery is possible faster than the seven to 10-year reporting window suggests. A secured credit card used responsibly for 12 to 18 months can lift scores enough to move out of the worst pricing tier. On-time payments and low credit utilization are the two fastest-moving factors. For a full breakdown of how credit affects car insurance costs and which states weight it most heavily, MoneyGeek's dedicated guide covers the mechanics by state and insurer.
Car Insurance After Bankruptcy: FAQs
Can I get car insurance in every state after bankruptcy?
Yes — no state allows insurers to deny coverage solely because of bankruptcy. However, 46 states allow insurers to use credit scores as a rating factor, which means bankruptcy will raise your rates in most of the country even if it can't get you denied.
Which insurers are best after bankruptcy?
GEICO and Progressive offer the lowest rates for poor-credit drivers in most states, at $212 and $284 per month respectively for full coverage, based on MoneyGeek's data. State Farm and AAA rate significantly higher at poor-credit tiers — at $590 and $866 per month respectively — and are worth skipping during the recovery period.
How much more will I pay?
Poor credit from bankruptcy pushes full coverage rates to $212 to $311 per month at most major insurers, compared to $98 to $125 per month for a driver with good credit — roughly a 70% to 150% increase depending on the insurer. All figures reflect a 40-year-old male driver with a clean record and 100/300/100,000 full coverage with a $1,000 deductible.
Does bankruptcy affect my current policy?
Filing for bankruptcy doesn't automatically cancel an existing policy. However, if you miss a premium payment during the bankruptcy process and your policy lapses, getting reinstated or finding new coverage will be more expensive. Keep paying your premium throughout the process.
How quickly can I get back to standard rates?
Most insurers re-evaluate credit at each renewal. Drivers who actively rebuild credit — secured cards, on-time payments, low utilization — often see meaningful rate reductions within two to three years of discharge. Shopping at every renewal is essential, since rate improvements don't apply automatically.
Are there insurers that don't use credit at all?
A handful of nonstandard market insurers don't use credit as a primary rating factor. The General and Dairyland focus on driving record over credit history, which can produce competitive rates for post-bankruptcy drivers with otherwise clean records. For more options, MoneyGeek's guide to cheap car insurance for high risk drivers covers the lowest-rate providers across the nonstandard market.
MoneyGeek analyzed car insurance rates for a 40-year-old male driver with a poor credit tier designation, a clean driving record and full coverage of 100/300/100,000 with a $1,000 deductible. Rates are sourced from MoneyGeek's proprietary database and reflect the most recent available data export. All poor-credit rates are reported as male-only premiums and are never averaged with female rates.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.