Updated: August 18, 2025
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Progressive is the best car insurance company for drivers with bad credit, followed by Travelers based on MoneyGeek's scoring.
Drivers with bad credit pay $51 more per month than those with good credit. MoneyGeek's analysis of 529,578 quotes shows that poor credit can increase your annual insurance costs by over $1,500.
Insurance companies use your credit score to predict claim likelihood and payment reliability. Lower credit scores result in higher premiums because insurers view these drivers as higher risk.
GEICO offers the best affordable car insurance for drivers with bad credit, averaging $1,150 annually or $96 monthly. Bad credit increases premiums because insurers consider these drivers at higher risk, but affordable options exist.
The table below provides average monthly and annual premiums for drivers with bad credit.
| Geico | $96 | $1,150 |
| Travelers | $118 | $1,411 |
| Nationwide | $122 | $1,463 |
| Progressive | $142 | $1,709 |
| Allstate | $148 | $1,772 |
| Farmers | $162 | $1,945 |
| State Farm | $263 | $3,158 |
While affordable premiums matter, choosing a reputable insurer with excellent customer service is equally important. Progressive is the best car insurance provider for drivers with poor credit, followed by Travelers. The best option depends on your specific needs.
Progressive offers competitive rates and comprehensive coverage for drivers with bad credit. The company provides accident forgiveness to prevent rate increases after your first at-fault accident and includes roadside assistance for car troubles. Progressive offers various discount opportunities, including bundling discounts for combining auto and home insurance policies.
Progressive will reconsider your rates when factors that influence pricing change. Be prepared to provide documentation of your improved credit score. Progressive may not automatically check your credit regularly, so being proactive can save you money if your score increases.
Travelers provides robust coverage and cost-saving opportunities for drivers with bad credit. Its new car replacement coverage replaces your totaled vehicle with a brand-new one of the same make and model. Travelers also offers an accident forgiveness program to keep rates steady after your first accident. Discounts like safe driving for accident-free drivers and good student for young drivers with good grades help policyholders save.
Travelers uses your credit score when setting rates, but won't automatically check if your score improves. You need to call and ask for a review. When Travelers reviews your policy again, it considers your improved credit score, driving record and claims history.
Finding the best car insurance requires considering factors like credit history and comparing policies. This guide helps you make an informed decision.
Here are tips to help you find the best car insurance, even with poor credit:
Assess how much insurance you need to avoid overpaying for unnecessary coverage. Changes in your circumstances may reduce your risk of claims.
Full coverage insurance includes comprehensive and collision coverages, each with a deductible you must pay before your insurer covers repair or replacement costs. Higher deductibles lower your premiums.
A car's actual cash value directly affects premiums. Higher-value vehicles have higher premiums, while low-value cars cost less to insure due to lower repair and replacement costs.
Compare quotes from different insurers to find the best price and coverage for your needs.
Insurers consider your age, driving history and car type, along with your credit-based insurance score, to determine premiums. Use MoneyGeek's calculator to compare quotes and get accurate estimates for your car insurance.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Aug 20, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
In states where credit-based insurance scores are allowed, FICO reports that 95% of personal insurers use them to assess risk. Your credit score places you in one of these categories:
Actuarial data shows that people with lower credit scores file more claims. Insurers use these scores to evaluate risk, except in states that ban the practice. Poor credit drivers are considered high-risk and pay higher premiums, ensuring that good drivers don't subsidize higher-risk drivers.
Low credit doesn't prevent you from finding the best auto insurance. Here are several ways to lower your insurance rates:
Most insurance companies offer various discounts to help customers save. Bundling policies, such as auto and homeowners or renters insurance, can significantly lower your annual costs. Multi-vehicle discounts are another common option from national and regional insurers. Other ways to reduce your premiums include good driving discounts, employer discounts and loyalty discounts.
Many insurance companies offer discounts to policyholders who pay their entire premium upfront rather than in monthly or quarterly installments.
Poor credit doesn't have to be permanent. Improving your credit score is one of the best ways to lower your insurance premiums. Here are steps to help boost your score:
If your credit score is low due to late payments, setting up automatic payments ensures bills are paid on time. This simple step improves your payment history and boosts your credit score over time.
Paying off your full balance each month is one of the most effective ways to lower your credit utilization. It also helps you avoid interest charges, saving money in the long run.
Many credit agencies let you add on-time rent and utility payments to your credit report. Contact the agencies directly to learn how your positive payment history can benefit your credit score.
Each credit application results in a hard inquiry on your credit report, which can temporarily lower your score. Avoid opening new accounts temporarily to minimize hard inquiries.
You’re entitled to a free credit report from the major U.S. credit bureaus: Experian, Equifax and TransUnion. Review these reports for accuracy. If you find errors, such as incorrect delinquent accounts or signs of identity theft, you can dispute them to clean up your report and potentially boost your credit score.
If you have bad credit, consider no-credit-check car insurance companies, which base premiums on factors like age and location instead of credit scores.
Major insurers rarely skip credit checks, but local providers in your area may offer this option. Four states, California, Hawaii, Massachusetts and Michigan, prohibit insurers from using credit data to set rates.
Getting a car insurance quote doesn't affect your credit score. Insurers use a soft credit check when you're getting quotes, which doesn't impact your credit.
Drivers with poor credit pay higher car insurance rates. To save, compare quotes from different providers regularly to find affordable options. Credit scores impact premiums significantly, but affordable coverage exists. Some drivers can find rates as low as $15 per month.
Credit history affects insurance premiums in most states. Higher scores and strong credit histories lead to lower rates, while lower scores result in higher costs.
The table below shows how car insurance rates vary by credit score.
| Excellent | $58 | $697 |
| Good | $62 | $740 |
| Fair | $89 | $1,070 |
| Below Fair | $112 | $1,340 |
| Poor | $147 | $1,759 |
| Geico | $96 | $77 | $64 | $45 | $42 |
| Travelers | $118 | $98 | $75 | $51 | $46 |
| Nationwide | $122 | $106 | $94 | $72 | $65 |
| Progressive | $142 | $116 | $100 | $69 | $63 |
| Allstate | $148 | $127 | $111 | $82 | $84 |
| Farmers | $162 | $135 | $111 | $81 | $75 |
| State Farm | $263 | $155 | $93 | $51 | $40 |
GEICO offers the lowest car insurance rates in 10 states for drivers with bad credit. Kemper provides the cheapest rates in four states, while Erie Insurance, Farm Bureau, and Westfield Insurance each lead in three states. Some regional insurers also offer competitive rates in certain states but lack national availability.
| Alabama | Cincinnati Insurance | $53 | $630 |
| Alaska | Western National Insurance | $97 | $1,167 |
| Arizona | Safeway Insurance | $69 | $833 |
| Arkansas | Alfa Insurance | $39 | $466 |
| California | Geico | $74 | $889 |
| Colorado | American National | $85 | $1,021 |
| Connecticut | Geico | $84 | $1,009 |
| Delaware | Geico | $99 | $1,185 |
| District of Columbia | Erie Insurance | $126 | $1,514 |
| Florida | Travelers | $92 | $1,106 |
| Georgia | Central Insurance | $83 | $990 |
| Hawaii | Geico | $47 | $558 |
| Idaho | Grange Insurance | $63 | $751 |
| Illinois | Erie Insurance | $82 | $984 |
| Indiana | Hastings Insurance | $37 | $447 |
| Iowa | IMT Insurance | $70 | $838 |
| Kansas | Shelter Insurance | $85 | $1,016 |
| Kentucky | Grange Insurance | $70 | $839 |
| Louisiana | Geico | $79 | $945 |
| Maine | MMG Insurance | $67 | $808 |
| Maryland | Geico | $83 | $1,001 |
| Massachusetts | Safety Insurance | $42 | $502 |
| Michigan | Farm Bureau | $62 | $745 |
| Minnesota | Westfield Insurance | $39 | $471 |
| Mississippi | Farm Bureau | $85 | $1,016 |
| Missouri | Kemper | $67 | $807 |
| Montana | Kemper | $95 | $1,136 |
| Nebraska | Farmers Mutual Ins Co of NE | $25 | $295 |
| Nevada | Country Financial | $78 | $936 |
| New Hampshire | Mapfre Insurance | $45 | $537 |
| New Jersey | Geico | $91 | $1,091 |
| New Mexico | Kemper | $72 | $866 |
| New York | Erie Insurance | $59 | $703 |
| North Carolina | Utica Insurance | $67 | $803 |
| North Dakota | North Star Insurance | $60 | $726 |
| Ohio | Cincinnati Insurance | $53 | $631 |
| Oklahoma | American Farmers & Ranchers | $56 | $677 |
| Oregon | Country Financial | $48 | $579 |
| Pennsylvania | Westfield Insurance | $44 | $532 |
| Rhode Island | Geico | $93 | $1,121 |
| South Carolina | Farm Bureau | $82 | $984 |
| South Dakota | Farmers Mutual Ins Co of NE | $27 | $323 |
| Tennessee | Geico | $87 | $1,042 |
| Texas | Geico | $84 | $1,011 |
| Utah | Kemper | $68 | $816 |
| Vermont | Union Mutual Insurance | $31 | $377 |
| Virginia | Auto Owners | $75 | $899 |
| Washington | National General | $65 | $780 |
| West Virginia | Westfield Insurance | $63 | $755 |
| Wisconsin | West Bend Mutual | $59 | $703 |
| Wyoming | American National | $93 | $1,121 |
Note: The cheapest rates depend on factors like your driving record, age and location. Always compare quotes from multiple insurers in your area to find the best rate.
Credit's impact on your car insurance varies by state. Some states prohibit using credit scores entirely, while others allow insurers to increase rates by over 200% based on poor credit.
States Where Credit Has the BIGGEST Impact:
States Where Credit Has MODERATE Impact:
States With Limited Credit Use:
Note: Percentages represent maximum allowed increases. Actual increases vary by insurer and individual circumstances.
Getting auto insurance with bad credit can be challenging in states that factor credit into premiums. This FAQ provides tips and insights on finding coverage for drivers with poor credit.
Bad credit leads to higher car insurance costs. Actuarial data shows drivers with poor credit file more claims on average, causing them to pay more than twice as much as those with excellent credit scores.
Most insurers check credit history to create a credit-based insurance score. However, Massachusetts, California, Michigan, and Hawaii prohibit using credit to set premiums, so insurers in these states offer no-credit-check car insurance. Drivers with poor credit may also consider usage-based telematics programs, which often don't factor in credit when determining rates.
Insurance companies don't use your actual credit score to set rates. They take information from your credit report and create their own insurance score that helps them predict how likely you are to file a claim. Your credit matters, but it's just one piece of the puzzle — insurers also look at your driving record, age, location and other factors when calculating your premium.
According to MoneyGeek's analysis, GEICO offers the cheapest car insurance for drivers with bad credit at $96 per month. Travelers ($118/month) and Nationwide ($122/month) also provide competitive rates for bad credit drivers.
Drivers with poor credit pay an average of $85 more per month than those with good credit. This translates to over $1,500 more per year. In some states, poor credit can increase rates by up to 252%.
Yes, you can get car insurance with a 500 credit score, though you'll pay higher premiums. Consider usage-based insurance programs, shop with multiple insurers, or look into companies that don't heavily weigh credit scores in their pricing.
A credit score of 670 or higher typically qualifies for good car insurance rates. Excellent rates usually require a score of 740 or above. Each insurer has different credit score requirements and weighting systems.
No, car insurance payments don't directly build credit since most insurers don't report payments to credit bureaus. However, missed payments that go to collections can hurt your credit score.
Most insurers check credit when you first apply and at policy renewal (typically every six to 12 months). However, they won't automatically recheck if your credit improves, so you may need to request a review.
Four states prohibit using credit scores for car insurance: California, Hawaii, Massachusetts and Michigan. Maryland, Oregon and Utah also restrict credit use.
Yes, but options are limited. Some insurers like CURE and Dillo don't use credit scores. Usage-based insurance programs also focus more on driving behavior than credit history.
No, getting car insurance quotes uses soft credit checks that don't impact your credit score. Only when you actually purchase a policy might an insurer do a hard credit check.
To get cheap car insurance with bad credit: shop with multiple insurers, consider usage-based programs, raise your deductibles, bundle policies, maintain continuous coverage and work on improving your credit score.
Your credit score (like FICO) ranges from 300 to 850 and measures creditworthiness. An insurance score uses credit information but is calculated differently by each insurer to predict claim likelihood.
Bad credit can affect your car insurance rates for years, but the impact lessens as your credit improves. Most negative credit events (like missed payments) have less impact after two to three years and fall off credit reports after seven years.
Study Overview for the Best Insurers
We analyzed data from independent sources using a weighted scoring system with the following criteria:
Study Overview for the Cheapest Insurers
Using data from Quadrant Information Services and state insurance departments, we collected 529,578 quotes from 67 companies in 897 ZIP codes.
Sample Driver Profile
We used a sample driver profile and adjusted it to evaluate various factors like age, location and driving history.
We gathered rate data for full coverage policies, which include:
Coverage requirements vary by state. We analyzed rates based on state-specific minimum requirements to calculate state and national averages.
Learn more about MoneyGeek’s car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
